Levi Strauss & Co (LEVI) AI Stock Analysis

• Market Cap: $8.63B
• Dividend Yield: 2.58%
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.97
• Revenue Growth: -1.23%
• EPS Growth: 109.67%
• Country: US
• Employees: 18,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.41
• Shares Outstanding: 103,742,230
• 10 Day Avg. Volume: 2,215,667
• 30 Day Avg. Volume: 2,503,932
• PEG Ratio: 0.09
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 27.19
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: 11.59
• 1Y Price Target: $27.25
• Price Target Upside: 23.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 1.47
• Revenue Forecast (FY): $6.65B

• Rating: 60 Neutral
• Price Target: $24.00 ▲(8.65% Upside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

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 (DTC) transformation

A DTC mix at ~50% with sustained double-digit DTC and e‑commerce growth strengthens margin durability and customer economics. Higher DTC penetration and planned store expansion (50–60 net adds) increase pricing control, data-driven merchandising, and long-term revenue predictability versus wholesale.

Brand leadership and product expansion

Market leadership and rising share give Levi strategic pricing power and distribution leverage. Growth in women's, tops, and premium Blue Tab expands TAM and reduces dependence on core denim cyclical demand, supporting sustained top-line resilience and improved full-price sell-through over time.

Margin recovery and disciplined capital returns

Material margin expansion, strong ROIC and meaningful shareholder returns indicate improving operational execution and capital allocation. Sustained gross margin gains and disciplined buybacks/dividend increases support cash generation credibility and signal management confidence in recurring profitability enhancements.

Negative Factors

Meaningful leverage

Leverage near 1x debt/equity reduces buffer against cyclical revenue or margin shocks. With cyclical apparel demand and uneven cash flow, the capital structure limits flexibility for opportunistic investment or large buybacks and increases sensitivity to interest and refinancing risk over the medium term.

Volatile cash generation

Material year-over-year swings in operating cash flow and free cash flow highlight inconsistent cash conversion. This variability weakens the firm's ability to reliably fund capex, dividends, buybacks or debt reduction and raises execution risk if revenue or margin assumptions deteriorate.

Tariff, inventory and wholesale constraints

Sustained tariff-driven cost pressure and elevated inventory dollars inflate working capital and margin vulnerability. Coupled with US distribution transition delays and wholesale rationalization, these structural headwinds can depress full-price sell-through and constrain near-term wholesale scale and margin recovery.

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 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 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.

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.

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.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 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

• Technical Analysis Sentiment: Positive
• Last Price: 22.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 22.09 is above the 20-day moving average (MA) of 21.13, above the 50-day MA of 21.24, and above the 200-day MA of 20.47, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 51.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEVI.

Levi Strauss & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLM	68 Neutral	$3.33B	19.08	10.16%	2.18%	2.76%	-7.83%
KTB	66 Neutral	$3.75B	17.08	49.11%	3.36%	9.90%	-12.67%
PVH	64 Neutral	$3.16B	10.37	6.70%	0.22%	0.52%	-45.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LEVI	60 Neutral	$8.63B	19.81	23.63%	2.58%	-1.23%	109.67%
VFC	53 Neutral	$7.74B	35.70	12.93%	1.95%	-3.12%	―

Levi Strauss & Co Corporate Events

Levi Strauss Announces Upcoming Retirement of Board Director

On January 23, 2026, Levi Strauss & Co. announced that board member Christopher McCormick plans to retire from the company’s Board of Directors, effective at the conclusion of the 2026 annual meeting of shareholders, and will not stand for reelection at that meeting. The company stated that McCormick’s decision was not the result of any disagreement with management or the Board, and that he will continue to serve as a director through the end of his current term, signaling an orderly and non-contentious transition in the company’s boardroom leadership.

The most recent analyst rating on (LEVI) stock is a Hold with a $21.50 price target. To see the full list of analyst forecasts on Levi Strauss & Co stock, see the LEVI Stock Forecast page.

Levi Strauss & Co Appoints Jeffrey J. Jones II to Board

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.