Levi Strauss & Co. (NYSE:LEVI) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Levi Strauss & Co. (NYSE:LEVI) released its quarterly earnings results on Wednesday. The blue-jean maker reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.02, FiscalAI reports. Levi Strauss & Co. had a return on equity of 25.63% and a net margin of 9.20%.The business had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.71 billion. During the same quarter in the previous year, the company posted $0.50 earnings per share. Levi Strauss & Co.’s revenue for the quarter was up .9% on a year-over-year basis. Levi Strauss & Co. updated its FY 2026 guidance to 1.400-1.460 EPS.

Here are the key takeaways from Levi Strauss & Co.’s conference call:

• Direct-to-consumer momentum — Global DTC grew double digits (11% FY; Q4 +10%) with e‑commerce up 22%, now ~50% of sales, driving margin expansion and 15 consecutive quarters of positive comps.
• Brand and product traction — Levi’s delivered 7% organic revenue growth for FY2025, gained share as the #1 global denim brand, broadened into head‑to‑toe assortments (tops double‑digit growth) and launched the premium Blue Tab line and major global marketing moments (Super Bowl, World Cup).
• Tariffs and U.S. distribution transition — Tariffs are an estimated ~150 basis‑point headwind to gross margin, Q4 gross margin contracted 100 bps, and the move to a new U.S. 3PL has caused higher transitory distribution costs that are expected to persist through H1 2026.
• 2026 outlook and cadence — Company guides 4%–5% organic revenue growth (5%–6% reported), flat gross margin for the year (improvements back‑loaded as tariff mitigation ramps), adjusted EBIT margin up ~40–60 bps, and full‑year EPS $1.40–$1.46.
• Shareholder returns and financial discipline — Returned $363M in FY2025 (dividend +7%), executed a $150M buyback, and announced a new $200M ASAP repurchase program to be completed within 3–6 months, signaling confidence in cash generation.

Levi Strauss & Co. Price Performance

Shares of NYSE:LEVI traded down $0.56 on Friday, reaching $19.98. The company’s stock had a trading volume of 637,120 shares, compared to its average volume of 2,082,006. The company has a 50-day simple moving average of $21.49 and a 200 day simple moving average of $21.50. Levi Strauss & Co. has a 52-week low of $12.17 and a 52-week high of $24.82. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.87 and a current ratio of 1.52. The company has a market cap of $7.81 billion, a P/E ratio of 13.71, a PEG ratio of 1.38 and a beta of 1.33.

Levi Strauss & Co. Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 25th. Shareholders of record on Tuesday, February 10th will be given a dividend of $0.14 per share. The ex-dividend date is Tuesday, February 10th. This represents a $0.56 annualized dividend and a yield of 2.8%. Levi Strauss & Co.’s dividend payout ratio (DPR) is 36.84%.

Analyst Ratings Changes

A number of research firms have commented on LEVI. Weiss Ratings upgraded shares of Levi Strauss & Co. from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday. Wall Street Zen upgraded Levi Strauss & Co. from a “hold” rating to a “buy” rating in a research note on Saturday, January 17th. Stifel Nicolaus raised their price target on Levi Strauss & Co. from $24.00 to $27.00 and gave the company a “buy” rating in a report on Thursday, October 2nd. BTIG Research reaffirmed a “buy” rating and issued a $27.00 price objective on shares of Levi Strauss & Co. in a research note on Thursday. Finally, Needham & Company LLC reissued a “buy” rating and set a $28.00 target price on shares of Levi Strauss & Co. in a research note on Thursday. Twelve analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Levi Strauss & Co. currently has a consensus rating of “Moderate Buy” and an average target price of $26.46.

Key Levi Strauss & Co. News

Here are the key news stories impacting Levi Strauss & Co. this week:

• Positive Sentiment: Q4 beat — Levi reported $0.41 EPS vs. $0.39 expected and $1.77B revenue vs. $1.71B expected, driven by strong denim demand and DTC strength. Levi Strauss beats quarterly results estimates on strong denim demand
• Positive Sentiment: DTC-led turnaround narrative — Management says the business is at a “true inflection,” with direct-to-consumer and brand-elevation initiatives supporting medium-term margin and growth potential. Levi Strauss CEO Sees ‘True Inflection’ in Business
• Positive Sentiment: Analyst support — Multiple firms (TD Cowen, Needham, BTIG) reiterated Buy ratings and raised/maintained targets (e.g., $26–$28), providing upside narrative for investors focused on execution and capital returns. TD Cowen Buy & $26 Target
• Positive Sentiment: Dividend declared — LEVI announced a quarterly dividend of $0.14/share (annualized yield ~2.7%), which supports shareholder-return arguments.
• Neutral Sentiment: Earnings call color — Management and the CFO described product mix gains (denim, activewear), marketing plans (including a Super Bowl ad) and execution details; useful for the longer-term thesis but not the primary near-term trigger. Q4 Earnings Call Transcript
• Negative Sentiment: Guidance came up short — FY2026 EPS guidance of $1.40–$1.46 missed the ~$1.48 consensus, which is the main near-term reason for the share pullback despite the quarter beat. Levi beats Q4 expectations, but shares dip on weak 2026 outlook
• Negative Sentiment: Margin/headwind risks — Management cited higher U.S. import tariffs and weaker wholesale demand as pressures on near-term margins, tempering optimism about profitability expansion. Direct-to-consumer growth offsets wholesale weakness
• Negative Sentiment: Insider sale — SVP David Jedrzejek sold ~7,093 shares (~6.7% reduction of his holding), a small negative signal that some investors may note. SEC Form 4: Jedrzejek sale

Insider Activity

In related news, SVP David Jedrzejek sold 7,093 shares of the stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $21.38, for a total value of $151,648.34. Following the completion of the transaction, the senior vice president owned 98,193 shares of the company’s stock, valued at approximately $2,099,366.34. This trade represents a 6.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.25% of the company’s stock.

Institutional Investors Weigh In On Levi Strauss & Co.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LEVI. Magnetar Financial LLC bought a new stake in Levi Strauss & Co. in the third quarter worth about $329,000. Mariner LLC bought a new stake in shares of Levi Strauss & Co. during the 3rd quarter worth approximately $310,000. Nomura Holdings Inc. purchased a new position in Levi Strauss & Co. during the 2nd quarter valued at $307,000. Caxton Associates LLP bought a new position in Levi Strauss & Co. in the 1st quarter valued at $241,000. Finally, Osaic Holdings Inc. increased its stake in Levi Strauss & Co. by 71.9% in the second quarter. Osaic Holdings Inc. now owns 12,292 shares of the blue-jean maker’s stock worth $227,000 after purchasing an additional 5,141 shares during the period. 69.14% of the stock is currently owned by hedge funds and other institutional investors.

Levi Strauss & Co. Company Profile

Levi Strauss & Co is a global apparel company best known for its denim jeans and casual wear. Founded in 1853 in San Francisco by Bavarian immigrant Levi Strauss, the company pioneered the modern blue jean with the introduction of rivet-reinforced work pants. Over its more than 160-year history, Levi Strauss has evolved into a lifestyle brand, offering a broad portfolio that includes denim for men, women and children, as well as tops, outerwear, footwear and accessories.

The company’s flagship label, Levi’s®, is recognized worldwide for its iconic styles such as the 501® Original Fit Jeans, while additional brands, including Dockers®, Target core metric, and Denizen® by Levi’s, cater to diverse price points and consumer segments.