Levi Strauss & Co (LEVI) AI Stock Analysis

• Market Cap: $8.25B
• Dividend Yield: 2.63%
• Average Volume (3M): 3.37M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.00
• Revenue Growth: 3.20%
• EPS Growth: 200.49%
• Country: US
• Employees: 18,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.34
• Shares Outstanding: 107,206,840
• 10 Day Avg. Volume: 5,327,160
• 30 Day Avg. Volume: 3,373,048
• PEG Ratio: -2.08
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 10.36
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 3.75
• Enterprise Value/Ebitda: 18.49
• 1Y Price Target: $26.75
• Price Target Upside: 30.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: $23.50 ▲(14.24% Upside)

Levi Strauss & Co's strong earnings call performance and raised guidance are the most significant factors driving the score. Financial performance is solid but tempered by revenue growth challenges and declining free cash flow. Technical indicators suggest potential bearish momentum, but valuation remains reasonable.

Positive Factors

Direct-to-Consumer Growth

The growth in direct-to-consumer sales indicates a successful shift towards a more profitable business model, enhancing margins and customer engagement, which is likely to sustain long-term revenue growth.

International Expansion

Strong international growth, especially in Asia, highlights Levi's effective global strategy, providing a diversified revenue base and reducing reliance on any single market.

Women's Segment Growth

The significant growth in the women's segment underscores product diversification and market penetration, enhancing Levi's competitive position and long-term growth prospects.

Negative Factors

Wholesale Channel Challenges

Challenges in the wholesale channel could limit revenue growth and affect overall sales performance, indicating potential vulnerabilities in distribution strategy.

Tariff Headwinds

Persistent tariff impacts on margins could pressure profitability, necessitating strategic adjustments to mitigate long-term cost challenges.

Declining Free Cash Flow

A significant decline in free cash flow may constrain future investment opportunities and financial flexibility, impacting long-term growth and stability.

Levi Strauss & Co Business Overview & Revenue Model

Company Description

Levi Strauss & Co. operates as an apparel company. The company designs, markets, and sells jeans, casual and dress pants, activewear, tops, shorts, skirts, dresses, jackets, footwear, and related accessories for men, women, and children in the Americas, Europe, and Asia. It also sells its products under the Levi's, Dockers, Signature by Levi Strauss & Co., and Denizen brands. In addition, the company licenses Levi's and Dockers trademarks for various product categories, including footwear, belts, wallets and bags, outerwear, sweaters, dress shirts, kids wear, sleepwear, and hosiery. Further, it sells its products through third-party retailers, such as department stores, specialty retailers, third-party e-commerce sites, and franchisees who operate brand-dedicated stores; and directly to consumers through various formats, including company-operated mainline and outlet stores, company-operated e-commerce sites, and select shop-in-shops located in department stores, and other third-party retail locations. The company also operates approximately 3,100 brand-dedicated stores and shop-in-shops. The company was founded in 1853 and is headquartered in San Francisco, California.

How the Company Makes Money

Levi Strauss & Co. generates revenue primarily through the sale of its branded apparel and accessories. The company operates a direct-to-consumer model via its own retail stores and e-commerce platforms, which have increasingly become significant revenue streams. Additionally, Levi's products are sold through wholesale channels, partnering with a variety of retailers around the world. Key revenue streams include core products like denim jeans, which account for a substantial portion of sales, as well as seasonal collections and collaborations that attract diverse consumer interest. The company also benefits from strategic partnerships and licensing agreements that expand its reach and product offerings, contributing to its overall earnings.

Levi Strauss & Co Financial Statement Overview

Summary

Levi Strauss & Co exhibits strong profitability with a healthy gross profit margin and improved net profit margin. The balance sheet shows a solid debt-to-equity ratio and strong return on equity. However, challenges in revenue growth and declining free cash flow are concerns.

Income Statement

Levi Strauss & Co shows a robust financial performance with a healthy gross profit margin of 61.5% and a significant improvement in EBIT margin to 8.6% in TTM. Net profit margin also improved to 6.4% from 3.3% in the previous year. Revenue growth rate is stable with a slight decline of 0.4% compared to the previous year, indicating some challenges in revenue expansion.

Balance Sheet

The company maintains a solid debt-to-equity ratio of 1.07, indicating a balanced approach to leveraging. Return on equity is strong at 19.4%, reflecting effective utilization of shareholders' investments. Equity ratio stands at 32.0%, suggesting a moderate level of financial stability.

Cash Flow

Operating cash flow to net income ratio is 1.45, indicating good cash generation relative to net income. However, free cash flow decreased by 45.5% compared to the previous year, reflecting increased capital expenditures which could impact future cash availability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.52B	6.36B	6.18B	6.17B	5.76B	4.45B
Gross Profit	2.81B	3.82B	3.52B	3.55B	3.35B	2.35B
EBITDA	568.80M	454.00M	476.40M	834.20M	796.30M	34.20M
Net Income	420.10M	210.60M	249.60M	569.10M	553.54M	-127.14M
Balance Sheet
Total Assets	6.66B	6.38B	6.05B	6.04B	5.90B	5.64B
Cash, Cash Equivalents and Short-Term Investments	707.50M	690.00M	398.80M	500.20M	901.82M	1.59B
Total Debt	2.55B	2.21B	2.18B	2.09B	2.24B	2.66B
Total Liabilities	4.49B	4.41B	4.01B	4.13B	4.23B	4.34B
Stockholders Equity	2.16B	1.97B	2.05B	1.90B	1.67B	1.30B
Cash Flow
Free Cash Flow	92.50M	670.90M	121.90M	-39.00M	570.40M	339.20M
Operating Cash Flow	262.80M	898.40M	435.50M	228.10M	737.30M	469.59M
Investing Cash Flow	-9.70M	-281.10M	-240.70M	-235.70M	-571.80M	-188.56M
Financing Cash Flow	-337.10M	-319.30M	-214.10M	-365.40M	-840.90M	286.00M

Levi Strauss & Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.57
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEVI, the sentiment is Negative. The current price of 20.57 is below the 20-day moving average (MA) of 22.75, below the 50-day MA of 22.10, and above the 200-day MA of 18.50, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 32.07 is Neutral, neither overbought nor oversold. The STOCH value of 4.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEVI.

Levi Strauss & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KTB	71 Outperform	$4.71B	18.90	58.07%	2.46%	3.47%	5.86%
LEVI	71 Outperform	$8.25B	18.01	25.99%	2.63%	3.20%	200.49%
PVH	69 Neutral	$3.95B	9.17	9.32%	0.18%	-1.14%	-29.30%
COLM	68 Neutral	$2.88B	13.30	12.93%	2.21%	0.81%	4.86%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HBI	55 Neutral	$2.44B	15.49	154.00%	―	-27.88%	―
VFC	46 Neutral	$5.64B	65.75	7.83%	2.49%	-7.41%	―

Levi Strauss & Co Corporate Events

Levi Strauss Appoints New Global Controller

On August 7, 2025, Levi Strauss & Co. announced the appointment of Timothy Joseph ‘Joe’ Davis as the Senior Vice President, Global Controller, effective August 11, 2025. Davis, with a background in accounting and previous roles at Crocs, Inc., Agero, Inc., and Thermo Fisher Scientific Inc., will receive a comprehensive compensation package including a base salary, bonuses, and equity grants. This appointment follows the transition of Lisa Stirling, the former Global Controller, to a new role as Vice President, U.S. and Canada Finance.

Levi Strauss Issues €475 Million in Senior Notes

On July 29, 2025, Levi Strauss & Co. issued €475 million in 4.000% Senior Notes due 2030, which are senior obligations and rank equally with the company’s existing and future senior unsecured debt. The proceeds from this issuance were used to redeem the company’s outstanding 3.375% Senior Notes due 2027, enhancing its debt structure and potentially impacting its financial flexibility and market positioning.

Levi Strauss Announces €475M Senior Notes Placement

On July 14, 2025, Levi Strauss & Co. announced a private placement of euro-denominated senior notes due 2030, aiming to raise up to €475 million. The proceeds are intended to redeem the company’s 3.375% senior notes due 2027 and cover related fees, which could strengthen its financial position by managing debt obligations.