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Levi Strauss & Co (LEVI) AI Stock Analysis

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LEVI

Levi Strauss & Co

(NYSE:LEVI)

Select Model
Rating:65Neutral
Price Target:$26.00▲(7.93% Upside)
Action:reiterated
Date:10/08/26

LEVI’s score is supported primarily by improving profitability and strong recent free cash flow, plus reasonable valuation (P/E ~12.8) and a ~3% dividend yield. These positives are partially offset by weak technical positioning (price below key moving averages, negative MACD, RSI ~38) and earnings-call risks around DTC softness, higher distribution costs, and delayed benefits from the distribution network transformation.

Positive Factors
Denim category leadershipLeadership across major U.S. denim segments gives Levi’s meaningful brand equity, customer awareness and retailer relevance. This position can support resilient demand, pricing power and efficient marketing while helping the company defend share as competition intensifies.
Negative Factors
DTC softnessDTC is strategically important because owned stores and e-commerce provide customer access and greater control over the brand experience. Weak traffic and flat comparable sales in key markets could constrain growth, dilute channel economics and delay progress toward the company’s direct-to-consumer ambitions.

Levi Strauss & Co Key Performance Indicators (KPIs)

Operating Income by SegmentMeasures profit from each business segment after operating expenses, indicating which segments are most efficient and contribute most to the bottom line.

-$400.00M-$200.00M$0.00$200.00M$400.00MFeb 21May 21Aug 21Nov 21Feb 22May 22Aug 22Nov 22Feb 23May 23Aug 23Nov 23Feb 24May 24Aug 24Dec 24Mar 25Jun 25Aug 25Nov 25Mar 26May 26Aug 26
Chart Insights

Levi’s operating income is being driven by a consistently strong Americas business, while Europe and Asia have shifted from volatility to clearer improvement after the Europe DC remap and stronger DTC; small sub‑brands (Beyond Yoga, Other Brands) remain a modest, recurring drag and Corporate & Other is an increasing headwind as SG&A, integration and tariff-related costs grow. Management’s upgraded guidance and cashflow cushion support continued investment in DTC and premiumization, but tariff risk and distribution transition timing are the main threats to margin progression.

Data provided by:The Fly

Levi Strauss & Co (LEVI) vs. SPDR S&P 500 ETF (SPY)

-20%-10%0%10%20%30%LEVI+15.58%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
$9.24B
Dividend Yield
2.49%
Average Volume (3M)
3.35M
Price to Earnings (P/E)
15.8
Beta (1Y)
1.02
Revenue Growth
4.97%
EPS Growth
25.92%
Country
US
Employees
19,000
Sector
Consumer Cyclical
Sector Strength
61
Industry
Apparel - Manufacturers

Levi Strauss & Co Business Overview & Revenue Model

Company Description

Levi Strauss & Co. stands as a prominent global clothing enterprise, actively involved in the conceptualization, promotion, and distribution of an extensive collection of apparel and related accessories. Their comprehensive product line includes deni...

How the Company Makes Money

Levi Strauss & Co. primarily makes money by selling branded apparel and accessories through two main routes: (1) wholesale and (2) direct-to-consumer (DTC). In wholesale, the company sells merchandise (e.g., jeans, tops, outerwear, and related items)...

Levi Strauss & Co Earnings Call Summary

Earnings Call Date:Oct 07, 2026(Q3-2026)|% Change Since:24.43%|Next Earnings Date:Jan 27, 2027
Earnings Call SentimentPositive

The call was broadly positive. Levi Strauss delivered mid-single-digit organic revenue growth, strong international and wholesale momentum, margin expansion, inventory improvement and solid full-year guidance. Management acknowledged meaningful DTC challenges in the U.S. and Europe, higher distribution costs, delayed network-transformation benefits and foreign-exchange pressure, but reported improving September trends and outlined targeted actions to address performance.

Positive Updates

Organic Revenue Growth
Third-quarter net revenues increased 4% on a reported basis and 5% on an organic basis, delivering another quarter of mid-single-digit growth. Year-to-date organic revenue was up 7% versus the prior year.

Negative Updates

DTC Performance Below Expectations
Direct-to-consumer performance fell short of expectations in the quarter. Global DTC revenue grew 2%, while comparable sales were flat, driven by softer traffic trends in the U.S. and Europe.

Company Guidance

The company expects reported net revenues growth of approximately 7% for the full year versus its previous outlook of 7% to 7.5%, organic net revenues to be a little stronger at approximately 6%, gross margin of approximately 63% including approximately 80 basis points of net tariff refund benefit, adjusted SG&A as a percentage of revenue of approximately 51% including approximately 50 basis points of redeployment, adjusted EBIT margin slightly above the previous guidance at approximately 12.1% including approximately 30 basis points of net tariff refund benefit, and adjusted diluted earnings per share in the range of $1.54 to $1.56 including a $0.04 net tariff refund benefit; for the fourth quarter, reported net revenues are expected to be approximately 3%, organic net revenues approximately 4%, gross margin approximately 61.8%, adjusted SG&A includes approximately $30 million of tariff refund redeployment costs, adjusted EBIT margin approximately 11.4% to 11.6% including 180 basis points of net tariff refund redeployment costs, and adjusted diluted EPS approximately $0.36 to $0.38 including $0.07 of net tariff refund redeployment; DTC is expected to return to at least mid-single-digit growth in the fourth quarter and deliver high single-digit growth for the full year, while the DTC channel is expected to grow at a high single-digit rate for the full year, including mid-single-digit growth in the fourth quarter, and the company remains on track to deliver its annual algorithm of mid-single-digit revenue growth with a clear path to 15% operating margins over time.

Levi Strauss & Co Financial Statement Overview

Summary

Profitability and cash generation are solid in the TTM period (gross margin ~63%, net margin ~8.8%, and ~$659M free cash flow), showing a meaningful rebound versus 2024–2025. The main constraint is limited top-line momentum (revenue largely flat over recent years) and a moderately leveraged balance sheet (about ~$2.33B debt vs ~$2.42B equity), which reduces flexibility if demand or margins weaken.

Income Statement

74Positive

Balance Sheet

62Positive

Cash Flow

68Positive
Financial statement breakdown
BreakdownTTMNov 2025Nov 2024Nov 2023Nov 2022Nov 2021
Income Statement
Total Revenue6.68B6.28B6.36B6.18B6.17B5.76B
Gross Profit4.20B3.88B3.82B3.52B3.55B3.35B
EBITDA1.04B888.90M454.00M476.40M834.20M796.30M
Net Income589.70M578.10M210.60M249.60M569.10M553.54M
Balance Sheet
Total Assets6.93B6.85B6.38B6.05B6.04B5.90B
Cash, Cash Equivalents and Short-Term Investments779.30M848.80M690.00M398.80M500.20M901.82M
Total Debt2.33B2.31B2.21B2.18B2.09B2.24B
Total Liabilities4.51B4.57B4.41B4.01B4.13B4.23B
Stockholders Equity2.42B2.28B1.97B2.05B1.90B1.67B
Cash Flow
Free Cash Flow643.00M324.30M670.90M121.90M-39.00M570.40M
Operating Cash Flow852.00M545.70M898.40M435.50M228.10M737.30M
Investing Cash Flow-353.60M-68.70M-281.10M-240.70M-235.70M-571.80M
Financing Cash Flow-468.70M-416.30M-319.30M-214.10M-365.40M-840.90M

Levi Strauss & Co Technical Analysis

Technical Analysis SentimentPositive
Last Price24.09

Price Trends

50DMA20.74Positive
100DMA22.01Positive
200DMA21.50Positive

Market Momentum

MACD0.99Negative
RSI68.20Neutral
STOCH86.01Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEVI, the sentiment is Positive. The current price of 24.09 is above the 20-day moving average (MA) of 22.20, above the 50-day MA of 20.74, and above the 200-day MA of 21.50, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 68.20 is Neutral, neither overbought nor oversold. The STOCH value of 86.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEVI.

Levi Strauss & Co Risk Analysis

Levi Strauss & Co disclosed 48 risk factors in its most recent earnings report. Levi Strauss & Co reported the most risks in the "Production" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

3 New Risks
1.Use of artificial intelligence technologies by us and our service providers could subject us to stringent and changing obligations. Our actual or perceived failure to comply with such obligations could lead to regulatory investigations or actions, litigation, fines and penalties, disruptions of our business operations, reputational harm and other adverse business or financial consequences.Q4, 2025
2.We may not be able to realize the potential financial or strategic benefits of the transactions we complete, or find suitable target businesses to acquire.Q4, 2024
3.We rely significantly on information technology and data to operate our business, including our supply chain and retail operations, and any delay or problem with operating or upgrading that technology or data, or those third parties upon which we rely, could cause a disruption to our business and adversely affect our financial results.Q4, 2024

Levi Strauss & Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

LEVI against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
GIIIGIII72Outperform$1.38B9.937.53%1.25%-8.74%-22.98%
KTBKTB70Outperform$4.52B21.8034.10%2.67%2.16%-7.36%
LEVILEVI65Neutral$9.35B15.8525.72%2.49%4.97%25.92%
PVHPVH63Neutral$4.29B-25.84-3.49%0.16%1.64%-140.84%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
VFCVFC56Neutral$8.16B21.9619.89%1.74%-1.64%299.75%
XELBXELB38Underperform$2.98M-0.12-95.03%―-21.18%65.21%

* Consumer Cyclical Sector Average

Performance Comparison

-50%0%50%100%150%LEVIGIIIPVHVFCXELBKTBDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
LEVI and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
LEVILevi Strauss24.093.0014.25%
GIIIG-Iii Apparel31.894.0414.49%
PVHPVH Corp92.0213.8417.70%
VFCVF Corp20.645.7038.15%
XELBXCel Brands Inc0.42-0.54-56.56%
KTBKontoor Brands79.347.4810.41%

Levi Strauss & Co Corporate Events

Business Operations and StrategyExecutive/Board Changes

Levi Strauss Names New Executive Vice President CFO

Positive
Sep 30, 2026

Levi Strauss & Co. announced on September 30, 2026, that John Vandemore will become Executive Vice President and Chief Financial Officer on November 1, 2026, succeeding Harmit Singh, who will retire after a brief advisory period through November 30....

Business Operations and StrategyExecutive/Board Changes

Levi Strauss Updates Board Leadership and Governance Structure

Neutral
Aug 18, 2026

On August 14, 2026, Levi Strauss & Co. announced that longtime Class III director Robert Eckert retired from its Board upon reaching the company’s mandatory retirement age of 72. Eckert, who had served on the Board since 2010 and was chair until Apri...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 08, 2026