Levi Strauss & Co. (LEVI) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Levi Strauss & Co. (LEVI) Consumer Business Overview

Levi Strauss & Co. (LEVI) designs, markets, and sells apparel, including its iconic jeans, through a global network of retail stores, e-commerce platforms, and wholesale partners. With a history dating back to 1853, LEVI leverages brand recognition and a diversified product line to compete in the consumer cyclical sector.

What Is the Investment Thesis for LEVI?

With a P/E ratio of 12.34 and a dividend yield of 2.47%, LEVI offers a blend of value and income. The company's strong gross margin of 61.7% indicates pricing power and efficient cost management. Growth catalysts include expansion in emerging markets and continued strength in direct-to-consumer sales. Potential risks include fluctuating consumer preferences and macroeconomic headwinds affecting discretionary spending. Investors should monitor LEVI's ability to maintain brand relevance and manage its supply chain effectively.

Based on FMP financials and quantitative analysis

LEVI Key Highlights

Market capitalization of $7.87B, reflecting substantial investor confidence in the brand and its future prospects.

• P/E ratio of 12.34, suggesting a reasonable valuation relative to earnings.
• Gross margin of 61.7%, indicating strong pricing power and efficient cost management.
• Dividend yield of 2.47%, providing a steady income stream for investors.
• Beta of 1.34, indicating higher volatility compared to the overall market.

Who Are LEVI's Competitors?

LEVI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are LEVI's Key Strengths?

Strong brand recognition and heritage.

• Global distribution network.
• Diversified product line.
• High gross margin.

What Are LEVI's Weaknesses?

Dependence on denim sales.

• Exposure to fashion trends and changing consumer preferences.
• Competition from other apparel brands.
• Potential supply chain disruptions.

What Could Drive LEVI Stock Higher?

LEVI catalyst: Expansion of direct-to-consumer channels, including e-commerce and company-operated stores, is expected to drive revenue growth.

• Product innovation and diversification into new categories, such as activewear and sustainable apparel, can attract new customers.
• Potential strategic partnerships and collaborations with other brands and retailers could expand Levi Strauss & Co.'s reach.
• Continued investment in marketing and brand building can strengthen brand loyalty and drive sales.
• Earnings releases and investor presentations may provide positive updates on the company's financial performance and strategic initiatives.

What Are the Key Risks for LEVI?

Insider selling — insiders were net sellers of roughly $44.5M recently.

• Economic downturns could negatively impact consumer spending on apparel.
• Increased competition from online retailers and other apparel brands could erode market share.
• Fluctuations in raw material costs, such as cotton and denim, could impact profitability.
• Changes in trade regulations and tariffs could affect the company's supply chain and costs.
• Shifts in fashion trends and consumer preferences could impact demand for Levi Strauss & Co.'s products.

What Are the Growth Opportunities for LEVI?

• Growth opportunity 1: Expansion in emerging markets represents a significant growth opportunity for Levi Strauss & Co. As disposable incomes rise in countries like India and China, demand for branded apparel is expected to increase. Levi's can leverage its brand recognition and establish a stronger presence in these markets through strategic partnerships and targeted marketing campaigns. This expansion could contribute significantly to revenue growth over the next 3-5 years.
• Growth opportunity 2: Continued growth in direct-to-consumer (DTC) sales through e-commerce and company-operated stores offers higher margins and greater control over the customer experience. Investing in digital marketing and enhancing the online shopping experience can drive DTC sales. The global e-commerce market is projected to reach several trillion dollars by 2028, providing a substantial opportunity for Levi Strauss & Co.
• Growth opportunity 3: Product innovation and diversification beyond traditional denim can attract new customers and increase sales. Developing new product lines, such as activewear and sustainable apparel, can appeal to evolving consumer preferences. The activewear market is experiencing rapid growth, driven by increasing health consciousness and participation in sports and fitness activities. Levi's can capitalize on this trend by offering stylish and functional activewear products.
• Growth opportunity 4: Strengthening brand loyalty through targeted marketing and customer engagement initiatives can drive repeat purchases and increase customer lifetime value. Leveraging social media and influencer marketing can enhance brand awareness and build stronger relationships with customers. The use of data analytics to personalize marketing messages and product recommendations can also improve customer engagement and drive sales.
• Growth opportunity 5: Strategic partnerships and collaborations with other brands and retailers can expand Levi Strauss & Co.'s reach and access new customer segments. Collaborating with complementary brands can create unique product offerings and generate excitement among consumers. Partnering with major retailers can increase distribution and brand visibility. These collaborations can contribute to revenue growth and brand awareness over the next 2-3 years.

What Are LEVI's Competitive Advantages?

• Strong brand recognition and heritage, particularly with the Levi's brand.
• Global distribution network, including company-owned stores, e-commerce platforms, and wholesale partners.
• Diversified product line, offering a range of apparel and accessories.
• Licensing agreements that generate revenue and expand brand reach.

What Does LEVI Do?

Founded in 1853 by Levi Strauss in San Francisco, Levi Strauss & Co. began as a dry goods business catering to the needs of miners during the California Gold Rush. The company patented copper-riveted denim work pants in 1873, which became known as Levi's jeans. Over the decades, Levi Strauss & Co. expanded its product line to include a variety of apparel, such as casual and dress pants, activewear, tops, shorts, skirts, dresses, and jackets. The company also offers footwear and related accessories for men, women, and children. Levi Strauss & Co. operates globally, with a presence in the Americas, Europe, and Asia. Its brands include Levi's, Dockers, Signature by Levi Strauss & Co., and Denizen. The company distributes its products through third-party retailers, company-operated stores, e-commerce sites, and franchisees. As of 2026, Levi Strauss & Co. operates approximately 3,100 brand-dedicated stores and shop-in-shops. Levi's brand recognition and diversified product line have solidified its position in the apparel industry.

What Products and Services Does LEVI Offer?

• Designs and markets jeans, casual wear, and accessories under the Levi's brand.
• Offers a range of apparel, including pants, tops, skirts, jackets, and footwear.
• Sells products through third-party retailers, such as department stores and specialty retailers.
• Operates company-owned retail stores and outlet locations.
• Manages e-commerce platforms for direct-to-consumer sales.
• Licenses trademarks for various product categories, including footwear and accessories.
• Maintains a global presence with operations in the Americas, Europe, and Asia.

How Does LEVI Make Money?

• Designs and markets apparel products under its own brands.
• Sells products through wholesale channels, including department stores and specialty retailers.
• Operates a direct-to-consumer business through company-owned stores and e-commerce platforms.
• Generates revenue through licensing agreements for its trademarks.

What Industry Does LEVI Operate In?

Levi Strauss & Co. operates within the competitive apparel manufacturing industry, characterized by evolving consumer preferences and global supply chains. The industry is influenced by fashion trends, economic conditions, and technological advancements. Levi's competes with other major apparel brands, including The Gap, Inc. (GAP) and Gildan Activewear Inc. (GIL). The global apparel market is expected to continue growing, driven by increasing disposable incomes and urbanization in emerging economies. Levi Strauss & Co. is positioned to capitalize on this growth through its brand recognition and diversified product offerings.

Who Are LEVI's Key Customers?

• Men, women, and children who purchase apparel and accessories.
• Retailers who sell Levi Strauss & Co.'s products in their stores.
• Consumers seeking fashionable and durable clothing options.
• Licensees who use Levi Strauss & Co.'s trademarks for various product categories.

Over the past six months, Levi Strauss & Co. insiders filed 100 SEC Form 4 transactions — 55 sales and 45 purchases. On net that is roughly 1.7M shares disposed (about $44.5M), a signal worth weighing alongside the fundamentals.

Levi Strauss & Co. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 19.5% above estimates on average.

Levi Strauss & Co.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.06 places it in the safe zone, indicating low near-term bankruptcy risk.

Return on equity for Levi Strauss & Co. stands at 28.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 9.6%, showing how much profit it generates from its asset base. LEVI trades at a trailing price-to-earnings ratio of 12.34, below the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is 6.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.60 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 7.3%, the inverse of the P/E and a quick read on earnings relative to price.

Levi Strauss & Co. (LEVI) Valuation Context

Valued at $7.87B, LEVI is classified as a mid-cap stock. Analyst price targets span from $27.00 to $34.00, with a consensus of $28.80. At the current price of $20.12, that implies approximately 43% upside potential. Relative to its peer group, LEVI's quantitative score of 81/100 is above the peer average of 60/100.

LEVI Revenue & Earnings Trend

In Q2 FY2026, LEVI generated $1.56B in top-line revenue, marking a sequential decrease of 10.4%. The company recorded net income of $87.3M, with diluted EPS of $0.22. Revenue has contracted over three consecutive quarters, which investors in this mid-cap Consumer Cyclical stock should monitor closely. Across the four most recent quarters, LEVI averaged $0.40 in diluted EPS.

Company Profile

Levi Strauss & Co. operates in the Apparel - Manufacturers industry within the Consumer Cyclical sector. It is headquartered in San Francisco, US. The company is led by CEO Michelle D. Gass. LEVI has traded publicly since 2019.

LEVI Financials

LEVI Latest News

LEVI Analyst Consensus

LEVI MoonshotScore

Common Questions About LEVI (Consumer Cyclical)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources