Levi Strauss & Co AI Stock Analysis
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Levi Strauss & Co (LEVI) AI Stock Analysis
Levi Strauss & Co
(NYSE:LEVI)
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.
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.
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.
Levi Strauss & Co (LEVI) vs. SPDR S&P 500 ETF (SPY)
- 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
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.
Q3-2026 Updates
Positive Updates
Negative Updates
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
74PositiveBalance Sheet
62PositiveCash Flow
68Positive| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.68B | 6.28B | 6.36B | 6.18B | 6.17B | 5.76B |
| Gross Profit | 4.20B | 3.88B | 3.82B | 3.52B | 3.55B | 3.35B |
| EBITDA | 1.04B | 888.90M | 454.00M | 476.40M | 834.20M | 796.30M |
| Net Income | 589.70M | 578.10M | 210.60M | 249.60M | 569.10M | 553.54M |
Balance Sheet | ||||||
| Total Assets | 6.93B | 6.85B | 6.38B | 6.05B | 6.04B | 5.90B |
| Cash, Cash Equivalents and Short-Term Investments | 779.30M | 848.80M | 690.00M | 398.80M | 500.20M | 901.82M |
| Total Debt | 2.33B | 2.31B | 2.21B | 2.18B | 2.09B | 2.24B |
| Total Liabilities | 4.51B | 4.57B | 4.41B | 4.01B | 4.13B | 4.23B |
| Stockholders Equity | 2.42B | 2.28B | 1.97B | 2.05B | 1.90B | 1.67B |
Cash Flow | ||||||
| Free Cash Flow | 643.00M | 324.30M | 670.90M | 121.90M | -39.00M | 570.40M |
| Operating Cash Flow | 852.00M | 545.70M | 898.40M | 435.50M | 228.10M | 737.30M |
| 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
Price Trends
Market Momentum
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.
Latest Risks Added
3 New RisksLevi Strauss & Co Peers Comparison
Overall Rating
GIII72Outperform
KTB70Outperform
LEVI65Neutral
PVH63Neutral
VFC56Neutral
XELB38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 72Outperform | $1.38B | 9.93 | 7.53% | 1.25% | -8.74% | -22.98% | |
| 70Outperform | $4.52B | 21.80 | 34.10% | 2.67% | 2.16% | -7.36% | |
| 65Neutral | $9.35B | 15.85 | 25.72% | 2.49% | 4.97% | 25.92% | |
| 63Neutral | $4.29B | -25.84 | -3.49% | 0.16% | 1.64% | -140.84% | |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| 56Neutral | $8.16B | 21.96 | 19.89% | 1.74% | -1.64% | 299.75% | |
| 38Underperform | $2.98M | -0.12 | -95.03% | ― | -21.18% | 65.21% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| LEVI | Levi Strauss | 24.09 | 3.00 | 14.25% | |
| GIII | G-Iii Apparel | 31.89 | 4.04 | 14.49% | |
| PVH | PVH Corp | 92.02 | 13.84 | 17.70% | |
| VFC | VF Corp | 20.64 | 5.70 | 38.15% | |
| XELB | XCel Brands Inc | 0.42 | -0.54 | -56.56% | |
| KTB | Kontoor Brands | 79.34 | 7.48 | 10.41% |
Levi Strauss & Co Corporate Events
Levi Strauss Names New Executive Vice President CFO
PositiveLevi 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....
Levi Strauss Updates Board Leadership and Governance Structure
NeutralOn 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...
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
