Needham reiterates Buy rating on Levi Strauss, $28 price target

Wells Fargo reduced its price target for Levi Strauss (LEVI) to $20 from $25, citing a revenue miss due to weaker direct-to-consumer sales and margin concerns. Despite beating EPS estimates, margins were impacted by higher expenses. The stock trades at a P/E of 14.03 and a PEG of 0.22, with Q4 estimates declining due to increased investments. Other analysts have mixed views, with some lowering targets but maintaining positive ratings.

Raymond James lowered its price target for Levi Strauss (NYSE:LEVI) to $22 from $24, citing a 'messy' outlook but favorable risk/reward. The stock trades at a P/E of 14.03 and PEG of 0.22. Levi reported Q3 EPS of $0.48, beating estimates, with net sales up 4.3% YoY to $1.6B, though revenue missed expectations. The company aims for long-term EBIT margin expansion to 15% and offers a 3.28% dividend yield.

BTIG maintained a Buy rating and $27.00 price target for Levi Strauss (LEVI) after its Q3 2026 results. Net sales rose 4.3% YoY to $1.6B, with adjusted EPS at $0.48. Gross margin increased to 66.2%, partly due to tariff refunds. Direct-to-consumer performance was weak, but international and wholesale segments showed strength. The stock trades at a P/E of 14 and PEG of 0.22, per InvestingPro.

Levi Strauss & Co (LEVI) reported Q3 2026 earnings, with direct-to-consumer (DTC) growth falling short of expectations due to softer traffic in the US and Europe. CEO Michelle Gass attributed US DTC underperformance to a back-to-school campaign that under-delivered, while Europe faced weather-related challenges. Distribution costs were higher than expected, delaying cost savings until 2027.

Levi Strauss & Co. (LEVI) stock fell 1.2% in pre-market trading after Q3 fiscal 2026 results beat profit expectations but missed on revenue. The profit beat included $80M in tariff refunds, raising concerns about earnings quality. The company lowered its full-year revenue growth outlook but raised adjusted EPS guidance. Weakness in the U.S. direct-to-consumer business and broader market pressure contributed to the decline.

Levi Strauss & Co (LEVI) reported Q3 2026 net revenues up 4% (5% organic), with gross margin expanding 450 bps to 66.2%. Adjusted EBIT margin was 15.5%, and adjusted EPS $0.48. International growth was 8%, led by Asia (10%) and China (13%). DTC grew 2%, while wholesale increased 6%. Full-year guidance includes 7% revenue growth and 12.1% EBIT margin. Q4 guidance projects 3% revenue growth and 11.4%-11.6% EBIT margin.