Levi Strauss & Co. (NYSE:LEVI) is among the 12 Best Consumer Stocks to Buy According to Wall Street. Jefferies Initiates Coverage of Levi Strauss & Co. (LEVI) with a Buy Rating and a $25 Price Target On February 4, 2026, Jefferies analyst Blake Anderson initiated coverage of Levi Strauss & Co. (NYSE:LEVI) with a Buy rating and a $25 price target. The firm said it expects the company to continue gaining market share and sees a long-term runway for value creation driven by direct-to-consumer, lifestyle, an ...

Core Insights - Levi Strauss & Co reported a resilient fourth quarter and strong full-year performance, driven by growth in direct-to-consumer and Europe [1][5] Group 1: Financial Performance - For Q4, net revenues increased by 1% to $1.8 billion, or 5% organically, despite challenges in wholesale [1] - Europe showed significant growth with Q4 net revenues up 8% reported and 10% organically, while the Americas saw a decline of 4% reported but a 2% organic growth [2] - E-commerce revenues rose by 19% reported and 22% organically, with DTC accounting for 49% of total group revenues in Q4 [3] Group 2: Strategic Focus and Growth Drivers - DTC remained the key growth engine, with revenues up 8% reported and 10% organically [2] - The company emphasized its strategic ambitions, operational execution, and agility, leading to elevated brand performance and profitability [4] - Smaller brands, such as Beyond Yoga, contributed to growth with Q4 revenue growth of 37% reported and 45% organically [4] Group 3: Margins and Future Outlook - Operating margin remained steady at 11.9%, while adjusted EBIT margin decreased to 12.1% from 13.9% a year earlier [5] - For the full year, net revenues reached $6.3 billion, up 4% reported and 7% organically, with expectations of mid-single-digit top-line growth in FY 2026 [5]

Core Insights - Levi Strauss reported revenue of $1.77 billion for the quarter ended November 2025, a decrease of 4% year-over-year, with EPS at $0.41 compared to $0.50 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.71 billion by 3.31%, and the EPS also surpassed the consensus estimate of $0.39 by 6.49% [1] Revenue Breakdown - Geographic Revenues in the Americas reached $959.2 million, slightly above the estimated $948.7 million, reflecting a year-over-year decline of 3.6% [4] - In Europe, revenues were reported at $469.4 million, exceeding the average estimate of $440.57 million, marking an 8.1% increase year-over-year [4] - Revenues from Other Brands (Beyond Yoga) were $46.3 million, significantly lower than the estimated $33.43 million, showing a drastic decline of 62.6% year-over-year [4] - Asia's revenues stood at $290.9 million, slightly above the estimated $290.11 million, with a year-over-year increase of 1.5% [4] - Total Levi's Brands Net Revenues were $1.72 billion, surpassing the average estimate of $1.67 billion based on three analysts [4] Stock Performance - Over the past month, shares of Levi Strauss have returned +0.8%, matching the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Levi Strauss & Co. is on something of a roll — and Michelle Gass, president and chief executive officer, is looking to keep it going. Organic sales grew by 7 percent to $6.2 billion for the fiscal year ended Nov. 3 — on top of a 3 percent increase in 2024. This year, sales are expected to grow by another 4 to 5 percent. More from WWD The challenge, of course, is maintaining the momentum. “We are very pleased with 2025,” Gass told WWD in an interview. “I would say it marked a true inflection point for t ...

Core Insights - Levi Strauss (LEVI) is expected to report quarterly earnings of $0.39 per share, a decline of 22% year-over-year, with revenues forecasted at $1.71 billion, reflecting a 7.1% decrease compared to the same period last year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions to the stock, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [2] Key Metrics Analysis - The consensus estimate for 'Geographic Revenues- Americas' is $948.70 million, indicating a year-over-year decline of 4.7% [4] - 'Geographic Revenues- Europe' is projected to reach $440.57 million, reflecting a year-over-year increase of 1.5% [4] - 'Geographic Revenues- Other Brands (Beyond Yoga)' is estimated at $33.43 million, suggesting a significant decline of 73% year-over-year [4] - 'Geographic Revenues- Asia' is expected to be $290.11 million, indicating a year-over-year increase of 1.3% [5] Stock Performance - Shares of Levi Strauss have increased by 0.6% over the past month, compared to a 0.2% increase in the Zacks S&P 500 composite, with a Zacks Rank of 3 (Hold), suggesting that LEVI is likely to mirror overall market performance in the near future [5]

Core Insights - Levi Strauss reported a 7% year-on-year increase in net revenues to $1.5 billion for Q3 2025, with growth across various regions and channels [1][2][4] Revenue Performance - Net revenues in the Americas increased by 6% reported and 7% organically, with the US up 3% organically [1] - Europe saw a growth of 5% reported and 3% organic, while Asia experienced a significant growth of 12% on both measures [1] - Direct-to-consumer (DTC) revenue climbed 11% reported and 9% organically, with e-commerce sales up 18% reported and 16% organic, accounting for 46% of total revenue [2] - Wholesale revenue grew by 3% reported and 5% organic [2] Profitability Metrics - Adjusted net income for Q3 2025 was $135.7 million, slightly up from $133.9 million in the same period last year [2] - Adjusted diluted earnings per share (EPS) stood at $0.34 [2] - Gross margin expanded by 110 basis points to 61.7%, driven by a favorable channel mix and price hikes [3] - Operating margin improved to 10.8% in Q3 2025, compared to 2.3% a year earlier [3] Liquidity and Financial Guidance - As of August 31, 2025, cash and cash equivalents were $613 million, with total liquidity of $1.5 billion [3] - The company completed the sale of its Dockers intellectual property and operations in the US and Canada for $194.7 million [3] - For fiscal 2025, the company raised its reported net revenue growth expectation to around 3% and organic growth to 6% [4] - Adjusted diluted EPS outlook was lifted to between $1.27 and $1.32 [4] Strategic Direction - The CEO stated that the company's pivot to a DTC-first, head-to-toe denim lifestyle retailer is driving significant financial performance improvements [5] - The company is well-positioned for the holiday season and expresses confidence in sustained, profitable growth into 2026 and beyond [6]

Core Insights - The global apparel industry is highly competitive, with Levi Strauss & Co. (LEVI) and Abercrombie & Fitch Co. (ANF) as notable players leveraging brand heritage and strategic transformation to capture market share [1][2] Company Overview - Levi has a legacy of over 170 years, primarily in denim, while Abercrombie has reinvented itself to appeal to young consumers [2] - Levi operates in casualwear and denim, selling through Direct-to-Consumer (DTC) and wholesale channels, while Abercrombie focuses on specialty retail with its Abercrombie and Hollister brands [3] Strategic Approaches - Levi is transitioning into a DTC-first organization, enhancing its digital experience and expanding its product portfolio beyond jeans [6][7] - Abercrombie emphasizes agility and trend responsiveness, utilizing a "Read & React" model to quickly adapt to market trends [11][13] Market Performance - Levi's stock rose 21.7% in six months, while Abercrombie's stock fell 28.1%, indicating investor preference for Levi's strategy [8][20] - Levi's forward P/E ratio is 15.65X, reflecting strong market confidence, while Abercrombie's is 8.90X, indicating investor caution [18][19] Financial Estimates - Levi's fiscal 2025 sales estimate implies a decline of 4.04%, but EPS indicates growth of 2.4% [16] - Abercrombie's fiscal 2025 EPS estimate implies a decline of 4.9%, while sales are expected to grow by 4.7% [17] Conclusion - Levi is positioned as a stronger long-term investment due to its global scale, brand strength, and strategic transformation into a diversified lifestyle brand [23]

Core Insights - Levi Strauss & Co. (LEVI) reported strong second-quarter fiscal 2025 results, with earnings per share (EPS) of 22 cents, surpassing the Zacks Consensus Estimate of 14 cents, and a year-over-year increase of 37.5% from 16 cents [3][10] - Net revenues reached $1.45 billion, exceeding the Zacks Consensus Estimate of $1.37 billion, and reflecting a 6% year-over-year increase on a reported basis and 9% on an organic basis [3][10] - The company is transitioning into a denim lifestyle brand and a leading direct-to-consumer (DTC) retailer, supported by positive comparable sales growth and robust e-commerce performance [1][2] Financial Performance - DTC net revenues increased by 11% on a reported basis and 10% on an organic basis, totaling $716.1 million, with growth driven by a 9% rise in the U.S., 9% in Europe, and 10% in Asia [5][6] - Wholesale net revenues rose 3% on a reported basis to $729.9 million, with a 7% increase on an organic basis [6] - Gross profit increased by 8.8% year over year to $905.8 million, with gross margin expanding by 140 basis points to 62.6% [11] Market Performance - LEVI's shares rose over 5% in after-hours trading following the earnings report, with a 31.9% increase in share price over the past three months compared to the industry growth of 25.9% [4] - The company reported its 13th consecutive quarter of positive global comparable sales [10] Regional Insights - In the Americas, revenues increased by 5% on a reported basis and 9% on an organic basis, with double-digit growth in both DTC and wholesale channels [7] - European revenues jumped 14% on a reported basis and 15% on an organic basis [7] - In Asia, revenues remained flat due to strategic adjustments, but DTC showed double-digit growth in markets like Japan and Turkey [8] Future Outlook - For Q3, LEVI projects net revenue growth of 1-2%, an increase from the previous forecast of (1%) to (2%), with organic net revenue growth expected to be 4.5-5.5% [15] - The company anticipates gross margin to increase by 80 basis points and adjusted EBIT margin to be in the range of 11.4-11.6% [16] - Adjusted EPS is projected to be between $1.25 and $1.30, up from the previous estimate of $1.20 to $1.25 [16]