Levi Strauss (LEVI) Stock Forecast & Price Target

Levi Strauss is supported by a healthy and increasingly diversified brand franchise, with DTC now accounting for just over half of revenue in 2Q26, e-commerce up 17%, and comparable sales rising for a seventeenth consecutive quarter. Its outlook is strengthened by broad-based growth across the Americas, Europe, and Asia, plus category expansion in women’s, tops, and other lifestyle products that is helping push non-denim categories to roughly one-third of total company growth. Financially, the company is showing improving leverage as it targets 2026 revenue of about $6.75 billion, 11.9% operating margins, and further gross margin and SG&A gains from fuller-price selling, cleaner inventories, and a more focused portfolio.

Levi Strauss is viewed negatively because its shares already fell 20% over the last 3 months and remain near lows, yet the company still faces macro and geopolitical overhangs that could further pressure apparel demand. Prolonged tariff uncertainty, international trade policies, foreign currency swings, and geopolitical tensions threaten consumer spending, while weak execution on restructuring, direct-to-consumer expansion, and inventory control could limit the ability to deliver expected cost savings. In addition, denim demand may be normalizing after several years of strong growth, and weaker-than-expected FY25 organic revenue growth, especially in China, could flatten top-line momentum and compress margins.