Update shared on27 Sep 2025
Fair value Increased 2.02%Levi Strauss’s analyst price target was raised to $24.23, reflecting strong direct-to-consumer growth, positive gross margin trends, and ongoing strategic execution, supported by raised annual guidance and conservative management outlooks.
Analyst Commentary
- Stronger North America direct-to-consumer growth, supported by positive currency tailwinds and higher gross margin from improved product mix and full-priced selling.
- Execution on strategic initiatives, with momentum driven by favorable denim trends and "classic American" brand appeal, positioning the company for continued growth.
- Consistently impressive quarterly results, repeatedly beating earnings expectations and delivering upside across major geographies (Americas and Europe).
- Raised annual guidance, including the company's ability to mitigate tariff impacts, with analysts seeing conservative management outlooks as setting up favorable opportunities to outperform.
- Improved risk/reward profile as broad-based growth is sustained, though some view the current valuation as balanced with beatable forward guidance.
What's in the News
- Levi Strauss increased its quarterly dividend to $0.14 per share, totaling approximately $55 million.
- The company did not repurchase any shares from March 3, 2025 to July 3, 2025, but has completed 2.66% of the authorized buyback program since June 2022.
- 2025 net revenue growth guidance was raised to 1%–2% (from (1%)–(2%)), and organic net revenue growth to 4.5%–5.5% (from 3.5%–4.5%).
Valuation Changes
Summary of Valuation Changes for Levi Strauss
- The Consensus Analyst Price Target has risen slightly from $23.75 to $24.23.
- The Consensus Revenue Growth forecasts for Levi Strauss has risen from 1.4% per annum to 1.5% per annum.
- The Future P/E for Levi Strauss remained effectively unchanged, moving only marginally from 15.70x to 16.01x.
Disclaimer
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