Levi Strauss (LEVI) Stock Forecast & Price Target

Levi Strauss & Co. demonstrates a robust financial outlook, highlighted by a 300 basis point expansion in direct-to-consumer (DTC) margins in FY25, with management anticipating high-single-digit DTC growth supported by plans for 50-60 net new store openings in FY26. The Levi's brand has experienced a healthy 7% organic revenue growth for the full year, complemented by a remarkable 22% increase in e-commerce, which now constitutes approximately 10-11% of total business. With the DTC channel accounting for 49% of overall revenue and sustained growth momentum across regions, Levi's is well-positioned for continued growth, reflecting a promising earnings per share power forecast of $1.60+ for FY27.

The financial analysis indicates a negative outlook for Levi Strauss's stock primarily due to anticipated declines in wholesale revenue in the first half of 2026, despite a flat performance in the fourth quarter. Additionally, the company's gross margin showed a year-over-year decline, which, along with expectations of a decrease in top-line growth and declining interest in denim products, could further pressure revenues and operational margins. Macroeconomic uncertainties, particularly concerning prolonged tariffs, are expected to negatively influence organic revenue growth in fiscal year 2025, adding to the challenges faced by the company.