Education
About Us
Working with TipRanks
Follow Us
Levi Strauss (LEVI)
NYSE:LEVI
Top Page
Levi Strauss & Co
(NYSE:LEVI)
Select Model
Select Model
Rating:60Neutral
Price Target:
$21.50
▲(5.96% Upside)
The score is driven primarily by a solid-but-inconsistent financial profile (profit rebound but volatile earnings and cash flow with meaningful leverage) and weak current technical momentum. Offsetting this, management’s FY2026 guidance and tone are constructive with planned margin expansion despite tariff and distribution headwinds, and valuation is reasonable with a supportive dividend yield.
Positive Factors
Direct-to-Consumer Growth
The growth in direct-to-consumer sales indicates a strong connection with customers and enhances margin control, contributing to long-term revenue stability.
International Expansion
Expansion in international markets, especially in Asia, diversifies revenue streams and reduces dependency on any single market, supporting sustainable growth.
AI and Technology Integration
Leveraging AI and technology enhances operational efficiency and customer experience, positioning the company for future competitiveness and innovation.
Negative Factors
Wholesale Channel Challenges
Challenges in the wholesale channel may impact overall revenue growth, indicating potential vulnerability in distribution strategy.
Tariff Headwinds
Tariff impacts on margins could pressure profitability, necessitating strategic adjustments to maintain financial performance.
Cash Flow Management
Lower cash generation relative to net income could affect liquidity and limit investment capacity, posing risks to long-term growth.
Levi Strauss & Co (LEVI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.92B
Dividend Yield2.58%
Average Volume (3M)1.97M
Price to Earnings (P/E)18.5
Beta (1Y)1.02
Revenue Growth-1.23%
EPS Growth109.67%
CountryUS
Employees18,700
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.41
Shares Outstanding103,742,230
10 Day Avg. Volume3,155,974
30 Day Avg. Volume1,967,603
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)3.87
Price to Sales (P/S)1.40
P/FCF Ratio27.19
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit2.43
Enterprise Value/Ebitda10.61
Forecast
1Y Price Target
$27.25Price Target Upside34.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Levi Strauss & Co Business Overview & Revenue Model
Company DescriptionLevi 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 MoneyLevi Strauss & Co. generates revenue through multiple channels, primarily through the sale of its products in retail stores and online. The company's revenue model is driven by direct-to-consumer sales, which include both physical retail locations and e-commerce platforms, alongside wholesale distribution to third-party retailers and department stores. Key revenue streams include sales from the Levi's brand, as well as collaborations and licensing agreements that expand its market reach. Additionally, Levi Strauss & Co. benefits from strategic partnerships with various retailers, which enhance its distribution network and brand visibility. Seasonal collections and limited-edition releases also contribute to revenue, leveraging consumer demand for unique products. The company's focus on sustainability and innovation in product development further attracts a dedicated customer base, bolstering its overall earnings.
Levi Strauss & Co Key Performance Indicators (KPIs)
Levi Strauss & Co Earnings Call Summary
Earnings Call Date:Nov 30, 2025
(Q4-2025)
| Next Earnings Date:Apr 02, 2026
Earnings Call Sentiment Positive
Overall the call was constructive and optimistic: the company delivered broad-based revenue growth, strong DTC and e‑commerce acceleration, international momentum, higher full‑year margins and robust capital returns. Key near-term headwinds are tariff pressure on gross margin, transitory distribution costs in the U.S., elevated inventory dollars, and some wholesale rationalization. Management provided detailed mitigation plans (pricing, higher full-price selling, product cost reductions, AI-driven efficiency) and reiterated mid-single-digit organic growth and margin expansion guidance for FY2026.Q4-2025 Updates
Positive Updates
Full-Year Revenue Growth and Brand Momentum
Organic net revenue growth of 7% in FY2025; Levi's brand grew 7% and strengthened share (number one globally; more market share than next two competitors combined); November holiday season +7% and the highest holiday revenue in at least a decade.
Direct-to-Consumer (DTC) Transformation and E‑commerce Acceleration
DTC composed ~50% of the business and grew ~11% for the year (Q4 DTC +10%); e‑commerce grew +22% in Q4; DTC posted its 15th consecutive quarter of positive comps; Q4 saw improvements across store KPIs (traffic, conversion, UPT) and global retail expansion with 47 net new system stores opened in Q4 and a plan for 50–60 net new stores in FY2026.
Product Expansion — Tops, Women's and Premium Blue Tab
Tops grew double digits in Q4 and drove nearly half of Q4 revenue growth; women's accelerated +11% for the year (men's +5%); non-denim and head-to-toe categories contributed ~one-third of full‑year growth; global rollout of premium Blue Tab collection showed strong early consumer response, validating a new premium TAM.
International Strength
International (nearly 60% of sales): Q4 international +8%; Europe Q4 +10% with the UK and Germany delivering double-digit growth and operating margin expansion (+330 bps vs prior year); Asia Q4 +4%, full‑year Asia +7% with margin expansion.
Profitability and Capital Returns
Company delivered its highest-ever gross margin for the year (gross margin expanded ~110 bps in FY2025) and improved adjusted EBIT margin by ~70 bps for the year; ROIC ~16%; returned $363 million to shareholders in FY2025 (+26% YoY) including a 7% dividend increase and completed a $150M buyback (announced additional $200M ASAP repurchase).
2026 Financial Outlook and Guidance
FY2026 guidance: organic net revenue growth of 4–5% (company expects reported growth in the mid-single-digits after FX); full‑year adjusted EBIT margin expected to expand ~40–60 bps to ~11.8–12%; full‑year adjusted diluted EPS guided to $1.40–$1.46; CapEx roughly $230M (~3.5–4% of revenues).
Technology and Operational Initiatives (AI)
Launched AI-powered Outfitting in the Levi's app and plans for a consumer AI stylist chatbot; announced development/deployment of integrated AgenTeq AI platform in partnership with Microsoft to automate task-driven work—initiatives intended to drive productivity, improve personalization and support margin expansion.
Negative Updates
Tariff Headwinds and Gross Margin Pressure
Q4 gross margin was 60.8%, contracting ~100 bps versus prior year; company cites tariffs as an approximate ~150 bps negative gross margin impact for FY2026 with an additional ~20 bps FX headwind, requiring pricing, higher full‑price selling and cost actions to offset.
Quarterly EBIT and Operating Margin Contraction
Q4 adjusted EBIT margin contracted ~180 bps to 12.1%; operating margin contracted ~460 bps in the quarter, driven by lapping the 53rd week, tariff impacts and higher SG&A/distribution costs.
US Distribution Transition Delays and Transitory Costs
Transition to a new US third‑party distribution center took longer than expected; company continued operating an owned DC in parallel, causing higher transitory distribution costs that are expected to persist through 2026 and constrained US wholesale capacity in Q4.
Inventory and Tariff-Driven Cost Increase
Reported inventory dollars were up ~9% year‑over‑year while units were up ~2%; the dollar increase was primarily driven by tariffs, adding working‑capital and cost pressure that company plans to manage via pricing and product-cost reductions.
Wholesale Channel Challenges and Rationalization
Global wholesale was flat in the quarter (up 4% for the year); US wholesale declined in Q4 due to 3PL capacity constraints and prior‑year comparisons; company plans to rationalize non-strategic US wholesale accounts which may mute near-term wholesale growth.
SG&A Pressure from Incentives and Transition Costs
Adjusted SG&A dollars grew ~2.6% in Q4 largely from higher selling/incentive expenses, distribution network transition costs and unfavorable FX, contributing to margin dilution in the quarter.
Company Guidance
Levi’s 2026 guidance calls for organic net revenue growth of 4–5% (roughly 5–6% reported with ~1 point FX benefit), with Americas expected to grow low single‑digits, Europe mid‑single‑digits, and Asia mid‑ to high‑single‑digits; by channel DTC should grow high‑single‑digits (opening 50–60 net new system stores) while global wholesale is flat to slightly up. Management expects gross margin roughly flat year‑over‑year despite an approximate 150‑bp tariff headwind (and ~20‑bp FX headwind) to be offset by pricing, higher full‑price selling and product‑cost reductions; fully adjusted SG&A rate is expected to improve ~40–60 bps, marketing ≈7% of revenue (Q1‑weighted, ~160 bps higher in Q1), and adjusted EBIT margin to expand ~40–60 bps to about 11.8–12% for the year (Q1 adj. EBIT ~12%, down ~140 bps vs Q1 ’25). They forecast a full‑year tax rate around 23%, interest ≈$12M/quarter, full‑year adjusted diluted EPS $1.40–$1.46 (Q1 $0.35–$0.38, which includes a ~7¢ A&P drag), and CapEx ≈$230M (3.5–4% of revenues).Levi Strauss & Co Financial Statement Overview
Summary
Profitability rebounded sharply in 2025, but the multi-year pattern remains volatile across earnings and free cash flow. Leverage is meaningful (debt roughly in line with equity), and cash conversion weakened in 2025 versus 2024.Income Statement
Revenue has been broadly stable since 2021, with low growth and a small decline in the latest year (2025 annual revenue down ~1.2%). Profitability rebounded sharply in 2025 versus 2024 (net income rising from ~$211M to ~$578M and EBIT improving materially), which is a clear positive. However, results have been volatile over the cycle (losses in 2020, very strong margins in 2021–2022, then a dip in 2023–2024), suggesting earnings power is not yet consistently steady.66
Positive
Balance Sheet
Leverage is meaningful: total debt is ~$2.31B versus equity of ~$2.28B in 2025 (roughly 1.0x debt-to-equity using provided totals), and the company historically ran higher leverage (notably 2020). Equity has improved since 2020 and assets have grown, which supports balance-sheet resilience. Still, the capital structure leaves less cushion if operating performance softens, especially given the earnings variability seen in recent years.58
Neutral
Cash Flow
Cash generation is positive but uneven. Operating cash flow declined in 2025 to ~$530M from ~$898M in 2024, and free cash flow fell to ~$308M from ~$671M, reflecting weaker cash conversion year over year. The track record shows volatility as well (including negative free cash flow in 2022), although several years produced solid free cash flow (e.g., 2021 and 2024). Overall, cash flows support the business, but consistency is a key weakness.55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.28B | 6.36B | 6.18B | 6.17B | 5.76B |
| Gross Profit | 3.88B | 3.82B | 3.52B | 3.55B | 3.35B |
| EBITDA | 888.90M | 454.00M | 476.40M | 834.20M | 796.30M |
| Net Income | 578.10M | 210.60M | 249.60M | 569.10M | 553.54M |
Balance Sheet | |||||
| Total Assets | 6.85B | 6.38B | 6.05B | 6.04B | 5.90B |
| Cash, Cash Equivalents and Short-Term Investments | 848.80M | 690.00M | 398.80M | 500.20M | 901.82M |
| Total Debt | 2.31B | 2.21B | 2.18B | 2.09B | 2.24B |
| Total Liabilities | 4.57B | 4.41B | 4.01B | 4.13B | 4.23B |
| Stockholders Equity | 2.28B | 1.97B | 2.05B | 1.90B | 1.67B |
Cash Flow | |||||
| Free Cash Flow | 324.30M | 670.90M | 121.90M | -39.00M | 570.40M |
| Operating Cash Flow | 545.70M | 898.40M | 435.50M | 228.10M | 737.30M |
| Investing Cash Flow | -68.70M | -281.10M | -240.70M | -235.70M | -571.80M |
| Financing Cash Flow | -416.30M | -319.30M | -214.10M | -365.40M | -840.90M |
Levi Strauss & Co Technical Analysis
Negative
20.29
Price Trends
21.35
Negative
21.55
Negative
20.23
Negative
Market Momentum
-0.41
Positive
39.86
Neutral
30.83
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 20.29 is below the 20-day moving average (MA) of 20.99, below the 50-day MA of 21.35, and above the 200-day MA of 20.23, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 39.86 is Neutral, neither overbought nor oversold. The STOCH value of 30.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEVI.
Levi Strauss & Co Risk Analysis
Levi Strauss & Co disclosed 51 risk factors in its most recent earnings report. Levi Strauss & Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Levi Strauss & Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.54B | 20.27 | 10.16% | 2.18% | 2.76% | -7.83% | |
66 Neutral | $3.64B | 16.87 | 49.11% | 3.36% | 9.90% | -12.67% | |
65 Neutral | $3.01B | 9.85 | 6.70% | 0.22% | 0.52% | -45.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $7.92B | 18.47 | 23.63% | 2.58% | -1.23% | 109.67% | |
53 Neutral | $8.29B | 38.43 | 12.93% | 1.95% | -3.12% | ― |
* Consumer Cyclical Sector Average
LEVI
Levi Strauss & Co
19.93
1.42
7.65%
COLM
Columbia Sportswear
65.69
-12.41
-15.89%
PVH
PVH
65.65
-13.38
-16.93%
VFC
VF
21.18
-2.93
-12.15%
KTB
Kontoor Brands
65.60
-19.57
-22.98%
Levi Strauss & Co Corporate Events
Business Operations and StrategyExecutive/Board Changes
Levi Strauss & Co Appoints Jeffrey J. Jones II to Board
Positive
Dec 16, 2025
On December 11, 2025, Levi Strauss & Co. announced the appointment of Jeffrey J. Jones II to its Board of Directors, effective January 21, 2026. Mr. Jones, who has extensive experience in consumer insights and brand building, will serve on the Nominating, Governance and Corporate Citizenship Committee, and the Compensation and Human Capital Committee. His leadership is expected to play a critical role in evolving Levi Strauss & Co. into a best-in-class, direct-to-consumer retailer. Mr. Jones, who will retire from his role as President and CEO of H&R Block, Inc. at the end of 2025, brings over 30 years of experience across various industries, including previous leadership roles at Uber Technologies Inc. and Target Corporation.
The most recent analyst rating on (LEVI) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Levi Strauss & Co stock, see the LEVI Stock Forecast page.
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.