Levi Strauss & Co (LEVI) AI Stock Analysis

• Market Cap: $5.50B
• Dividend Yield: 3.67%
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.98
• Revenue Growth: 2.96%
• EPS Growth: -15.58%
• Country: US
• Employees: 18,700
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.52
• Shares Outstanding: 104,585,526
• 10 Day Avg. Volume: 2,576,315
• 30 Day Avg. Volume: 2,115,710
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.00
• Price to Cash Flow (P/CF): 5.30
• P/FCF Ratio: 5.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.17
• Price Target Upside: 46.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Levi Strauss & Co is in a stable financial position with strong revenue growth and cash flow. While technical indicators and valuation suggest caution, the positive outlook from earnings calls and strategic corporate events provide a moderate level of confidence in the stock's potential.

Positive Factors

Growth and Expansion

Levi's saw solid +9% organic growth across segments, categories, and channels.

Pricing Strategy

Levi's pricing leverage appears evident as average unit retail continues to trend positively given more full-priced selling.

Negative Factors

Headwinds

FX, tax rate, and the exit of non-core businesses weigh into FY25, creating a headwind to revenue.

Margin Uncertainty

Margin uncertainty from tariffs clouds the better-than-expected 1Q print.

Tariff and EPS Risk

Tariffs not yet in numbers; adds downside EPS risk.

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 design, marketing, and retailing of its apparel and accessories. The company's key revenue streams include direct-to-consumer sales via its owned retail stores and e-commerce platforms, as well as wholesale sales to department stores, specialty retailers, and third-party e-commerce sites. Levi Strauss & Co also benefits from licensing agreements, which allow partners to produce and sell products under the Levi's brand. Significant factors contributing to earnings include brand strength, global distribution networks, and strategic partnerships with retailers worldwide.

Levi Strauss & Co Financial Statement Overview

Summary

Levi Strauss & Co presents a solid financial position with stable revenue growth and strong cash flow generation. While there are pressures on profit margins and a slight decline in return on equity, the company maintains a balanced leverage and efficient cash management.

Income Statement

Levi Strauss & Co has shown stable revenue growth with a slight increase from $6.179 billion to $6.355 billion in the latest period. However, the gross profit margin decreased slightly from 56.9% to 60.0%, and the net profit margin also declined from 4.0% to 3.3%, indicating pressure on profitability. The EBIT and EBITDA margins have also shown a slight compression, reflecting operational challenges.

Balance Sheet

The company's balance sheet indicates a moderate debt-to-equity ratio of 1.12, suggesting a balanced leverage position. The return on equity decreased to 10.7% from 12.2%, reflecting a slight decline in equity efficiency. The equity ratio has remained relatively stable, indicating consistent asset management.

Cash Flow

Levi Strauss has demonstrated strong cash flow management, with free cash flow increasing significantly to $670.9 million. The operating cash flow to net income ratio is robust, indicating efficient cash management. However, the free cash flow to net income ratio is high, suggesting potential future investment opportunities or debt reduction strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.36B	6.18B	6.17B	5.76B	4.45B
	Gross Profit
3.82B	3.52B	3.55B	3.35B	2.35B
	EBIT
264.10M	353.30M	646.50M	686.21M	-17.18M
	EBITDA
264.10M	476.40M	834.20M	796.31M	34.20M
	Net Income Common Stockholders
210.60M	249.60M	569.10M	553.54M	-127.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
690.00M	398.80M	500.20M	901.82M	1.59B
	Total Assets
6.38B	6.05B	6.04B	5.90B	5.64B
	Total Debt
2.21B	2.18B	2.08B	2.24B	2.66B
	Net Debt
1.52B	1.78B	1.65B	1.43B	1.16B
	Total Liabilities
4.41B	4.01B	4.13B	4.23B	4.34B
	Stockholders Equity
1.97B	2.05B	1.90B	1.67B	1.30B
Cash Flow		Free Cash Flow
670.90M	120.00M	-39.00M	570.32M	339.20M
	Operating Cash Flow
898.40M	435.50M	228.10M	737.26M	469.59M
	Investing Cash Flow
-281.10M	-240.70M	-235.70M	-571.81M	-188.56M
	Financing Cash Flow
-319.30M	-214.10M	-365.40M	-840.89M	286.00M

Levi Strauss & Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 12.42 is below the 20-day moving average (MA) of 15.55, below the 50-day MA of 16.96, and below the 200-day MA of 17.84, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 43.55 is Neutral, 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
PVH	72 Outperform	$3.56B	6.42	11.67%	0.22%	-6.13%	-2.63%
KTB	67 Neutral	$3.20B	13.27	63.68%	3.52%	0.07%	7.19%
LEVI	66 Neutral	$5.50B	26.54	18.03%	3.67%	2.96%	-15.58%
COLM	63 Neutral	$3.81B	18.04	12.01%	1.74%	-3.35%	-6.09%
Sector *	59 Neutral	$10.97B	9.83	-1.56%	4.06%	1.31%	-16.49%
VFC	52 Neutral	$4.50B	―	-16.13%	3.11%	-8.42%	57.91%
HBI	47 Neutral	$1.65B	―	-43.06%	―	-29.44%	-1343.00%

Levi Strauss & Co Corporate Events

Levi Strauss & Co Announces Strategic Leadership Changes

On February 11, 2025, Levi Strauss & Co. announced the retirement of Liz O’Neill as Executive Vice President and Chief Operations Officer, effective March 1, 2025, with her continuing to consult the company until August 1, 2025. The company’s strategic leadership changes aim to accelerate its transformation into a top-tier omnichannel retailer, focusing on aligning its structure with strategic priorities to drive sustainable growth. Key organizational changes include expanded roles for several executives to enhance digital capabilities, streamline processes, and improve operational excellence. These changes are expected to unlock speed and innovation, furthering Levi’s commitment to becoming a leading denim lifestyle brand.

Levi Strauss & Co. Elects New Board Member

On January 17, 2025, Levi Strauss & Co. announced the election of Artemis Patrick to its Board of Directors, effective February 1, 2025. Patrick, who is the CEO of Sephora North America, will also serve on the Board’s Audit and Nominating, Governance and Corporate Citizenship Committees starting March 1, 2025. Her appointment is viewed as a strategic move to enhance LS&Co.’s position in the retail and apparel industries, leveraging her extensive experience in merchandising, brand building, partnerships, and e-commerce to support the company’s transformation into a leading omnichannel retailer.