The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 73 | 14.9x | 20.8x | Top tier | |
Growth | 31 | 0.8% | 6.1% | Bottom tier | |
Quality | 85 | 22.2% | 6.6% | Top tier | |
Safety | 78 | 0.1x | 0.7x | Top tier | |
Capital Return | 29 | 2.22% | 2.02% | Bottom tier | |
Momentum | 83 | 28.5% | 4.1% | Top tier | |
Sentiment | 46 | 10 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, 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. is a global apparel company centered on the Levi's brand, generating its revenue from selling jeans and lifestyle-related apparel through its own stores and direct-to-consumer digital channel, as well as through the wholesale channel and retail partners. In the second-quarter fiscal 2026 call, management described the company as transforming into a direct-to-consumer-led lifestyle company, with expansion from traditional denim bottoms into a broader assortment that includes shirts, dresses, shorts, and outerwear. The portfolio also includes the value-oriented Signature, Beyond Yoga, and BlueTab, a more premium expression of the Levi's brand targeting the premium denim segment.
The latest EDGAR figures available for the first quarter of 2026 showed revenue of $1.7 billion, gross profit of $1.1 billion, net income of $175.8 million, and EPS of $0.45. Based on these figures, the gross margin in the first quarter was close to 64.7%, while the net income margin was about 10.3%. For fiscal year 2025, the company recorded revenue of $6.3 billion, gross profit of $3.9 billion, net income of $578.1 million, and EPS of $1.45.
In the earnings call for the second quarter of fiscal 2026 ended May 31, 2026, management announced that net revenue increased 8% on a reported basis and 6% on an organic basis, and that adjusted gross margin expanded by 10 basis points to 62.7% despite tariff and currency pressure. Adjusted EBIT margin reached 9%, up 70 basis points, adjusted EBIT dollars grew 18%, and adjusted diluted EPS reached $0.28, up 27% year over year. The quarter's revenue mix was clearly defined: the direct-to-consumer channel represented 51% of revenue and grew 8%, global wholesale grew 3%, and international represents about 60% of the business, with Asia growing 12%, the Americas 7%, and Europe declining 1% due to the impact of the prior-year European distribution center transition.
The given market capitalization is $9.4 billion, while the context does not show a valid P/E ratio, so the traditional earnings multiple does not provide a direct valuation signal here. The analyst consensus is Buy, with an average price target of $28.4 and a target range between $25 and $34, and this average is above the upper end of the 52-week range of $25.58. Based on the automated comparison with the live price outside this text, the most important relative judgment remains whether the stock stays below the average target while revenue and margins continue growing, or approaches it quickly after rising to its highest levels in 4 years according to the July 8, 2026 news.
Figures in the text are as of 2026-07-09; the live price is shown at the top of the page.
The company raised its fiscal 2026 guidance after the second quarter exceeded expectations on revenue and earnings. Management now expects reported net revenue growth of 7% to 7.5% and organic revenue growth of 5.5% to 6%. It also raised its adjusted diluted EPS outlook to a range of $1.46 to $1.52. This followed net revenue growth of 8% reported and 6% organic in the second quarter and an expansion in adjusted EBIT margin to 9%.
The direct-to-consumer channel is the center of the transformation that management described as DTC-first, and it accounted for 51% of second-quarter 2026 revenue. This channel grew 8%, and comparable sales rose 6%, the seventeenth consecutive quarter of comparable sales growth. E-commerce grew 17%, but it still represents only about 12% of total revenue. Therefore, the company sees an additional opportunity in improving the site experience, reducing promotions, and raising average selling price and the number of units per order.
Yes, tariffs are explicitly cited as a pressure on the second quarter and on guidance, even though gross margin expanded by 10 basis points to 62.7%. The annual guidance assumes additional tariffs on U.S. imports from China at a rate of 30% and from the rest of the world at a rate of 20%. Management did not include any benefit from potential tariff refunds of about $80 million paid so far. It also explained that lower costs and pricing actions helped offset part of this pressure.
Automated analysis for informational purposes only — not investment advice.
BlueTab is the more premium expression of the Levi's brand, targeting the premium denim segment that management believes remains not sufficiently penetrated by Levi's. Management said BlueTab grew 40% in the first quarter and 40% again in the second quarter, with bottoms priced between $200 and $350 and jackets and outerwear from $250 and above. Beyond Yoga grew 16% in the second quarter, driven especially by e-commerce and expansion in lifestyle categories. Management also noted that Beyond Yoga has fewer than 20 stores and that the men's category remains an opportunity that is not yet fully tapped.
The company ended the second quarter with inventory down 7%, with a mix that management described as healthy and current across regions. Adjusted free cash flow rose about 80% year over year to $231 million, supported by business momentum and improved working capital. The company raised its third-quarter dividend by $0.02 to $0.16 per share. It also said it targets returning 55% to 65% of free cash flow to shareholders through dividends and opportunistic share repurchases.