Levi Strauss & Co (LEVI) AI Stock Analysis

• Market Cap: $8.48B
• Dividend Yield: 2.54%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.01
• Revenue Growth: 3.20%
• EPS Growth: 200.49%
• Country: US
• Employees: 18,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.34
• Shares Outstanding: 103,091,515
• 10 Day Avg. Volume: 1,822,726
• 30 Day Avg. Volume: 1,919,605
• PEG Ratio: -2.08
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 10.36
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: 11.81
• 1Y Price Target: $26.67
• Price Target Upside: 25.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $24.50 ▲(15.40% Upside)

Levi Strauss & Co's strong financial performance and positive earnings call results are the most significant factors driving the score. The company's strategic focus on direct-to-consumer and international expansion, especially in Asia, supports a positive outlook. Technical indicators show a mild bullish trend, while valuation remains reasonable.

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 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

Levi Strauss & Co exhibits strong profitability with a robust gross profit margin and improved EBIT margin. The company maintains a balanced debt level and strong return on equity. However, challenges in revenue growth and declining free cash flow warrant attention.

Income Statement

Levi Strauss & Co shows a robust financial performance with a healthy gross profit margin of 61.5% and a significant improvement in EBIT margin to 8.6% in TTM. Net profit margin also improved to 6.4% from 3.3% in the previous year. Revenue growth rate is stable with a slight decline of 0.4% compared to the previous year, indicating some challenges in revenue expansion.

Balance Sheet

The company maintains a solid debt-to-equity ratio of 1.07, indicating a balanced approach to leveraging. Return on equity is strong at 19.4%, reflecting effective utilization of shareholders' investments. Equity ratio stands at 32.0%, suggesting a moderate level of financial stability.

Cash Flow

Operating cash flow to net income ratio is 1.45, indicating good cash generation relative to net income. However, free cash flow decreased by 45.5% compared to the previous year, reflecting increased capital expenditures which could impact future cash availability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.36B	6.36B	6.18B	6.17B	5.76B	4.45B
Gross Profit	3.93B	3.82B	3.52B	3.55B	3.35B	2.35B
EBITDA	890.30M	454.00M	476.40M	834.20M	796.30M	34.20M
Net Income	602.70M	210.60M	249.60M	569.10M	553.54M	-127.14M
Balance Sheet
Total Assets	6.66B	6.38B	6.05B	6.04B	5.90B	5.64B
Cash, Cash Equivalents and Short-Term Investments	707.50M	690.00M	398.80M	500.20M	901.82M	1.59B
Total Debt	2.55B	2.21B	2.18B	2.09B	2.24B	2.66B
Total Liabilities	4.49B	4.41B	4.01B	4.13B	4.23B	4.34B
Stockholders Equity	2.16B	1.97B	2.05B	1.90B	1.67B	1.30B
Cash Flow
Free Cash Flow	324.10M	670.90M	121.90M	-39.00M	570.40M	339.20M
Operating Cash Flow	560.10M	898.40M	435.50M	228.10M	737.30M	469.59M
Investing Cash Flow	-98.60M	-281.10M	-240.70M	-235.70M	-571.80M	-188.56M
Financing Cash Flow	-427.30M	-319.30M	-214.10M	-365.40M	-840.90M	286.00M

Levi Strauss & Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEVI, the sentiment is Neutral. The current price of 21.23 is below the 20-day moving average (MA) of 21.84, above the 50-day MA of 21.20, and above the 200-day MA of 19.33, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 24.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LEVI.

Levi Strauss & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEVI	75 Outperform	$8.48B	18.74	25.99%	2.54%	3.20%	200.49%
COLM	69 Neutral	$2.98B	16.61	10.84%	2.14%	2.76%	-7.83%
KTB	66 Neutral	$3.56B	16.50	49.11%	3.30%	9.90%	-12.67%
PVH	66 Neutral	$3.23B	10.59	6.70%	0.22%	0.52%	-45.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	60 Neutral	$7.28B	82.24	6.39%	1.93%	-4.56%	―
HBI	49 Neutral	―	―	140.06%	―	-19.47%	―

Levi Strauss & Co Corporate Events

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.

Spencer Fleischer Retires from Levi Strauss Board

On October 2, 2025, Spencer Fleischer retired from Levi Strauss & Co‘s Board of Directors upon reaching the mandatory retirement age of 72. Fleischer, who served since 2013 and was the chair of the Compensation and Human Capital Committee, was succeeded by Troy Alstead. His retirement was not due to any disagreements with the company, and the Board now consists of twelve directors.