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what it is
Levi sells jeans, tops, jackets, and casual clothes under Levi’s, Dockers, and value labels in more than 120 countries.
how it gets paid
Last year Levi Strauss made $6.3B in revenue. americas wholesale was the main engine at $2.16B, or 34% of sales.
why it's growing
Revenue grew 4.1% last year. 62.1% gross margin is the number. Gross margin → money left after making the product → so what: Levi still has pricing power even in.
what just happened
Levi's last report beat estimates by 5.13%, which is nice, but the bigger story is margin holding up.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
25/100 earnings predictability — expect surprises
17.0x trailing p/e — the market's not buying it — or you found a deal
2.7% dividend yield — cash in your pocket every quarter
18.0% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
Levi sells jeans, tops, jackets, and casual clothes under Levi’s, Dockers, and value labels in more than 120 countries.
You do not need to explain Levi's to anyone. That matters when your products sell in over 120 countries and 42% of sales come from outside the Americas. Return on capital (profit earned on money invested) was 18.0% according to the company data set, so what: this brand still turns shelf space and marketing into real profit better than most apparel names.
How they make money
$6.3B
annual revenue · their business grew +4.1% last year
americas wholesale
$2.16B
americas direct-to-consumer
$1.49B
europe
$1.51B
asia and rest
$1.14B
The products that matter
designs and sells denim and apparel
Levi's Jeans & Apparel
$6.3B revenue
it's the whole $6.3B business. that revenue base still produced a 23% return on equity, which tells you the brand has value even without segment-level detail.
core business
profitability of the core line
Brand monetization
8.5% net margin
keeping 8.5 cents of every sales dollar in apparel is the part that matters. if that number slips, the equity story changes fast.
margin watch
shareholder cash return
Dividend
2.7% yield
the dividend gives you a 2.7% annual cash return while you wait for the brand story to prove itself in the numbers.
income support
Key numbers
18.0%
return on capital
Return on capital → profit earned on money invested → so what: Levi still converts investment into profit like a strong brand owner.
15.0%
operating margin
Operating margin → profit after running the business → so what: Levi has room to absorb some tariff pain before the model really bends.
1.5%
sales growth
Projected sales growth → how fast the top line expands → so what: the business is profitable, but it is not exactly sprinting.
2.7%
dividend yield
Dividend yield → cash paid back to you each year → so what: you are getting paid a little while waiting for the story to prove itself.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $1.0B (11% of capital)
- net profit margin 9.9% — keeps 10 cents of every dollar in revenue
- return on equity 23% — $0.23 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in LEVI 3 years ago → it's now worth $14,210.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Levi's last report beat estimates by 5.13%, which is nice, but the bigger story is margin holding up.
The company reported annual revenue of $6.3B, up 4.1% vs. prior year, and gross margin reached 62.1%. Better product mix and direct selling did the heavy lifting.
$4.5B
revenue
$1.05
eps
62.1%
gross margin
the number that mattered
62.1% gross margin is the number. Gross margin → money left after making the product → so what: Levi still has pricing power even in a promotional market.
-
while august-period revenues and earnings per share from continuing operations were better than expected, rising 7% and five-fold from the year-earlier term (excluding the dockers line, which is being divested), management warned that tariff-related costs would pressure gross margins, and hurt profitability in the final stretch of the year.this eroded investor confidence that levies could be offset with selective price hikes, especially amid sluggish consumer spending.
-
earnings should still move upward, nonetheless, with the help of strategic initiatives.
-
despite a likely weak fourth-quarter performance, levi expected to post higher fiscal 2025 results than previously guided, with revenue growth of about 3%, a wider gross margin by 100 basis points, and adjusted earnings per share of $1.27-$1.32, excluding discontinued dockers operations.
-
this assumed u.s. duties on china imports of 30%, and 20% (up from 10%) for the rest of the world.
-
we cautiously set our profit call at $1.25.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a consumer pullback in denim and casualwear spending.
med
consumer demand slips
Levi sells discretionary apparel. if shoppers trade down or delay purchases, the pressure lands on the core business fast.
Impact: apparel is effectively 100% of the reported $6.3B revenue base, so there is no separate business line to offset weaker demand.
med
margin compression from discounting or cost pressure
An 8.5% net margin is good for apparel, but not so high that it can absorb repeated markdowns without pain.
Impact: if Levi has to give up price to move inventory, the 23% return on equity stops looking as durable as the headline suggests.
med
brand relevance fades with younger buyers
A 160-year-old brand is an asset until it starts feeling old. apparel moats live in culture, not patents.
Impact: slower traffic and weaker full-price sell-through would show up first in revenue growth, which is already only expected to be about $6B this year.
all three risks point to the same place: this is one $6.3B apparel business, so demand or margin trouble flows straight through the whole model.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings in february
you want to see whether the $0.55 quarterly EPS result turns into a cleaner full-year trend.
metric
net margin around 8.5%
that margin is doing a lot of work in the equity story. if it slips, the brand premium is not helping you enough.
trend
whether the $6B revenue outlook stabilizes
last reported revenue was $6.3B. this year's estimate is $6B. that gap is small, but it tells you growth is not the current pitch.
risk
consumer sentiment and markdown pressure
if shoppers get cautious, apparel brands feel it fast. watch commentary on traffic, promotions, and inventory discipline.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, nobody sees a major short-term edge here.
risk profile
average
stability score 3 — this sits near the middle of the market on risk, not in the bunker and not in the casino.
chart momentum
top 20%
technical score 2 — analysts expect above-average price performance in the year ahead, even if the business is not a fast grower.
earnings predictability
25 / 100
the company does not produce clean, clockwork earnings. if you own it, expect a few noisy quarters.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 154 buyers vs. 102 sellers in 3q2025. total institutional holdings: 86.1M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$16
$35
$21
current price
$26
target midpoint · +23% from current · 3-5yr high: $40 (+90% · 19% ann'l return)
Want the deeper analysis?
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