Levi Strauss & Co Dossier - Source-backed chat

Levi Strauss & Co

LEVINYSE

SectorConsumer Discretionary

IndustryApparel Manufacturing

Beta (adjusted)1.22

Intrinsic Value $35.01median of 6 methods · middle span $19-$37based on filings through 31 May 2026

Market Price $19.92Price as of 1 Oct 2026

Significantly undervaluedIntrinsic value is 76% above the market price

−50% · IV below pricenear fair value ±15%IV above price · +50%

marker beyond scale (+76%)

Data confidence Sign in to view data confidence

Market Cap $7.7B

Enterprise Value $7.9B

Shares Outstanding 384.9M diluted

Moat Rating Wide

Next Earnings Date8 Oct 2026

Last ex-dividend22 Jul 2026

All prices and values are periodic snapshots, not live quotes. Source dates are shown for reference.

Thesis

Street consensus, scenarios, merits, risks, and invalidation triggers

AI-assisted

Thesis Summary

Levi Strauss entered the second half of FY2026 with broad-based organic growth, stronger DTC momentum and improving quarterly profitability, supporting management's raised annual revenue and EPS outlook. The Dockers divestiture also concentrates capital on Levi's and Beyond Yoga. The balanced rating reflects execution risk around the 12% adjusted EBIT-margin objective, a negative quarterly organic result in Europe, and guidance assumptions that tariffs, consumer conditions, supply chains and currencies do not worsen materially.

This section is the 12-month view: analyst targets and the probability-weighted scenarios built from them. The intrinsic value at the top of this page answers a different question: what the business is worth today.

Street view · analyst 12-month targets15 analysts · as of 18 Aug 2026

Low · most bearish analyst$25.00

Mean target$28.27

High · most bullish analyst$34.00

Our research · scenarios, merits, risks, and invalidation triggersResearch as of 2 Sep 2026

Scenarios · 12-month scenario targetsAnchored at research date

Bear CaseDownside scenario

$25.0024%

The bear case assumes adjusted diluted EPS falls to the $1.46 lower end of guidance and a 10-times analytical scenario multiple applies because tariff, consumer, currency or execution pressures prevent the planned margin expansion. The resulting analytical price target is $14.60 per share.

Base CaseCentral scenario

$28.2757%

Matches the consensus mean

The base case therefore uses the $1.49 midpoint of company FY2026 adjusted diluted EPS guidance and a 15-times analytical scenario multiple, producing $22.35 per share. It assumes organic revenue remains within the 5.5%-6.0% guide and adjusted EBIT margin approaches 12%.

Bull CaseUpside scenario

$34.0019%

The bull case assumes adjusted diluted EPS reaches the $1.52 top of company guidance and the market awards a 20-times analytical scenario multiple as DTC, Asia and Beyond Yoga sustain growth while margin expansion meets or exceeds plan. The resulting analytical price target is $30.40 per share.

Scenarios are anchored to street consensus at the research date, with our probabilities and rationale.

Key Investment Merits

Second-quarter organic net revenue grew 5.7%, DTC organic revenue grew 8.4%, and Asia organic revenue grew 11.9%, demonstrating growth across important channels and geographies.
Second-quarter gross margin reached 62.7% and adjusted EBIT margin reached 9.0%, versus 8.3% adjusted EBIT margin in the prior-year quarter.
The completed Dockers divestiture concentrates the portfolio on Levi's and Beyond Yoga and supports investment and shareholder returns.

Key Investment Risks

FY2026 guidance assumes tariffs of 30% on China imports and 20% on rest-of-world imports, together with no significant worsening in consumer, inflation, supply-chain, tariff or currency conditions.
Europe organic net revenue declined 0.8% in the second quarter, creating a geographic execution risk despite positive first-half growth.
DTC represented 51% of second-quarter net revenue, increasing the importance of store productivity, e-commerce execution and sustained consumer demand.

All scenarios are estimates and subject to change. Past performance is not indicative of future results.

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Explore this dossier

ValuationIntrinsic value, the six-method breakdown, peer medians, and your assumptions sandbox.Financial SnapshotRevenue, profitability, returns, balance sheet, dividends, and the filing-level detail.Qualitative AnalysisBusiness overview, strategic initiatives, and mergers, acquisitions & partnerships.Outlook & Key DatesForward estimates, reporting calendar, and the monitoring framework.