Wells Fargo cuts Levi Strauss stock price target on revenue miss

Needham maintained a Buy rating on Levi Strauss (LEVI) with a $28 price target, suggesting a 43.5% upside. The firm cited strong Q4 growth projections due to reaccelerating DTC sales and effective use of $80M in tariff refunds for marketing and supply chain improvements.

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.