Levi Strauss (LEVI): Evaluating Valuation as Digital Transformation and Black Friday Strategy Drive Change

Levi Strauss (NYSE:LEVI) is actively reshaping its business on two fronts. The company is leveraging a new AI-driven partnership with Microsoft to modernize operations and is also rolling out a major Black Friday sale to energize consumer demand across multiple apparel categories.

See our latest analysis for Levi Strauss.

Levi Strauss is building on its digital transformation with Microsoft and a bold Black Friday sales strategy, fueling renewed optimism in the stock. The 26% year-to-date share price return reflects this momentum, while its 30% total shareholder return over the past year underscores solid performance for both short- and long-term investors.

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With the stock still trading below analyst targets and showing attractive value metrics, investors must now ask whether Levi Strauss is being overlooked or if strong returns this year indicate that all the upside is already priced in.

Most Popular Narrative: 17.8% Undervalued

Levi Strauss's most widely followed narrative puts fair value at $26.79 per share, which is notably higher than the recent close of $22.03. With a significant margin between market price and narrative value, much of the optimism centers around robust international growth and a shift toward direct-to-consumer sales.

Ongoing robust growth in international markets, particularly Europe (up 15% with double-digit gains in France, UK, Italy, and Spain) and Latin America (up 18%), shows that Levi's is successfully capturing rising demand from an expanding global middle class and urbanization. This directly supports sustainable revenue expansion and reduces geographic risk.

Read the complete narrative.

Curious which growth bets are fueling this premium? The model behind this price expects clearer international expansion, accelerating margins, and a bold direct-to-consumer push. But what are the hidden numbers giving analysts such conviction? Dive in to see the detailed assumptions driving this valuation.

Result: Fair Value of $26.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, higher tariffs and slower progress in key international markets could put pressure on Levi's margins and challenge its current growth trajectory.

Find out about the key risks to this Levi Strauss narrative.

Build Your Own Levi Strauss Narrative

If you see the story differently or want to dig into the data yourself, you can craft your own viewpoint in just a few minutes. Do it your way

A great starting point for your Levi Strauss research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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