| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 76 | 14.6x | 17.3x | Top tier | |
Growth | 35 | 6.6% | 7.1% | Bottom tier | |
Quality | 86 | 12.7% | 4.5% | Top tier | |
Safety | 74 | 1.6x | 2.6x | Top tier | |
Capital Return | 66 | 2.58% | 0.06% | Around median | |
Momentum | 52 | -7.2% | -1.6% | Around median | |
Sentiment | 46 | 10 | 3 | Around median |
The floor: what the company is worth if growth stopped today
39% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Levi Strauss & Co. sells denim-based apparel and is expanding the Levi's brand from jeans into shirts, dresses, and complete outfits, alongside Signature, which targets value-conscious consumers, and Beyond Yoga. It generates revenue through direct-to-consumer sales in stores and e-commerce, as well as wholesale distribution. In quarter 2 of fiscal year 2026 (ended 2026-05-31), direct-to-consumer sales accounted for 51% of revenue, while e-commerce represented approximately 12% of total revenue; this makes improving the store and website experience and diversifying the assortment essential elements of its financial model.
Revenue in quarter 2 of fiscal year 2026 (ended 2026-05-31) was $1.6 billion, up 8.0% year over year, with net income of $87.3 million and diluted earnings per share of $0.22. Gross margin reached 62.7% and operating margin reached 7.8%, compared with 62.6% and 7.5%, respectively, in quarter 2 of fiscal year 2025, while operating cash flow was $270.8 million. Across the business mix, direct-to-consumer sales grew 8% and wholesale grew 3% on an organic basis, while women's apparel grew 11% and Beyond Yoga grew 16%; growth therefore extended beyond the core jeans business.
Revenue totaled $6.6 billion, net income $639.2 million, and free cash flow $559.3 million over the last 12 months through 2026-05-31. However, news on 2026-10-07 added a divergence to this picture: Levi Strauss raised its annual earnings outlook while lowering its net revenue growth outlook to the bottom of its previous range, and earnings benefited from a tariff refund. Consequently, sustained sales growth and the ability of operations to support earnings independently of refunds have become decisive factors in assessing the resilience of performance.
Q2 FY2026
Last 12 months to 2026-05-31
When: 2026-10-08
Revenue growth in quarter 3 of fiscal year 2026 within a range of 4% to 5%
Gross margin for quarter 3 of fiscal year 2026 at 61.8%
When: Fiscal year 2026
The median analyst price target is $28, with a range of $27 to $34 across 5 analysts, reflecting expected growth, and this method tends to be optimistic by nature. The industry-multiple valuation is $24, with a range of $19 to $38, pricing next year's earnings at a median multiple of 13.7 across 15 comparable companies. The discounted cash flow model yields $16, with a range of $14 to $20 and a discount rate of 11.2%, measuring the value of expected cash flows and being conservative by nature, while the no-growth valuation is $12 when current after-tax operating profit is held constant in perpetuity at the same discount rate. Analyst targets and the industry-multiple valuation are relatively close, and their ranges overlap, while the two methods based on cash and sustained profit yield lower levels; the difference reflects the weight of expected growth and comparable-company pricing versus cash generated and what remains if growth stops.
Figures in the text are as of 2026-10-08; the live price is shown at the top of the page.
Direct-to-consumer sales accounted for 51% of revenue in quarter 2 of fiscal year 2026 (ended 2026-05-31) and grew 8% organically. Comparable sales increased 6% and e-commerce increased 17%, although e-commerce represented approximately 12% of total revenue. This shift links Levi's results more closely to the store and website experience, assortment expansion, and increased full-price selling.
Pants grew 6% in quarter 2 of fiscal year 2026 (ended 2026-05-31), but expansion beyond denim pants contributed approximately one-third of revenue growth. Women's apparel grew 11% and shorts grew 11%, while Beyond Yoga increased 16% with the expansion of everyday apparel and the linen assortment. BlueTab also grew 40%, although it remained a small business, illustrating the diversity of growth opportunities without treating the new categories as a fully scaled replacement for the core business.
Automated analysis for informational purposes only — not investment advice.
Adjusted operating margin for fiscal year 2026 at 12%
Over the last 12 months through 2026-05-31, net income totaled $639.2 million and operating cash flow totaled $773.9 million. This represents earnings-to-cash conversion of 121%, and free cash flow totaled $559.3 million. In quarter 2 of fiscal year 2026 (ended 2026-05-31), liquidity and investments totaled $977.8 million against total debt of $1.0 billion, so earnings supported by cash coexist with debt remaining above liquidity.
News on 2026-10-07 reported that earnings exceeded expectations and benefited from a tariff refund. On the same date, the company raised its annual earnings-per-share outlook but lowered its net revenue growth outlook to the bottom of its previous range, with revenue falling short of its target. Revenue had grown 8.0% in quarter 2 of fiscal year 2026 (ended 2026-05-31), compared with 14.1% in quarter 1 of fiscal year 2026. This divergence makes sustained demand and the contribution of operations to earnings more important than an earnings beat alone.
During the ninety days through 2026-10-08, one sale by one insider was recorded, valued at $2.4 million. The entire value was under a prearranged 10b5-1 trading plan, and sales outside these plans totaled $0. No open-market purchases were recorded, and the sale was by an executive.