Levi Strauss (LEVI) Stock Forecast & Price Target

Levi Strauss is well positioned for fundamental strength because its revenue growth is broad-based across DTC and wholesale, geographies, and categories, with 2025 net revenues of $6.3 billion, DTC revenue up 8% organically, wholesale up 3%, and DTC comparable sales up 6% for the 17th consecutive quarter of positive comp growth. The company’s brand and product mix are also improving, as women’s revenue rose 11%, tops and non-denim lifestyle categories are expanding, premium Blue Tab is gaining traction, and healthy full-price selling supported a 62.6% gross margin, a 9.0% adjusted EBIT margin, and clean inventory down 7.3% year over year. Looking ahead, the outlook is reinforced by expected FY26 and FY27 adjusted EPS of $1.52 and $1.70, respectively, plus ongoing operating leverage from DTC comp sales in the high-single digits, margin expansion, and tariff-mitigation actions such as promotion optimization, targeted pricing, vendor negotiations, and supply-chain diversification.

Levi Strauss is facing a negative outlook because its business remains exposed to weaker consumer spending in apparel, macroeconomic uncertainty, tariff volatility, international trade policies, and geopolitical tensions across its global footprint, which could pressure demand and margins despite the strength of its brands. Even though management is narrowing the portfolio and targeting broad-based revenue growth, the company is still only estimated to reach 2026 revenues of $6.76 billion with 11.9% operating margins, well short of its long-term goals of $10 billion in sales and a 15% operating margin. The expected margin improvements in Q4 and FY27 may help, but near-term profitability is still vulnerable to competitor pricing, foreign exchange, inventory growth, and distribution inefficiencies, making the fundamental risk-reward profile unattractive.