Levi Strauss (LEVI) Stock Forecast & Price Target

Levi Strauss & Co. demonstrated strong organic growth of 10% in Direct-to-Consumer (DTC) sales during the recent quarter, with total brand organic revenue increasing approximately 7% for the full year, highlighting robust performance across the Americas and Asia. The company achieved over 190 basis points of gross margin expansion year-to-date, benefiting from improved pricing strategies and a favorable channel mix, indicative of effective cost management and market positioning. With expectations for continued EBIT margin expansion and projected earnings per share of over $1.60 by FY27, the financial outlook reflects a positive trajectory supported by the brand's resonating appeal and consistent sales momentum.

Levi Strauss & Co. is anticipated to experience a decline in net revenues by 2.6% year-over-year to $1.70 billion, primarily driven by a significant drop of 6% in the key Americas segment, which serves as its main revenue generator. The company faces increased macroeconomic uncertainty, compounded by the potential negative impact of prolonged tariffs, particularly in the Asian market, leading to expectations of weaker performance and falling organic revenue growth for FY25. Additionally, despite a slight improvement in gross margin expected in the second half of the fiscal year, the fourth-quarter projections indicate an 80-basis point headwind on gross margin and pressure on earnings per share, reflecting ongoing challenges in sustaining top-line growth and profitability.