TD Cowen maintains Buy rating on Levi Strauss, $23 price target

Levi Strauss faces a lawsuit for allegedly not lowering prices after the Supreme Court ruled Trump's tariffs illegal. The suit seeks $79M plus $5M in interest for customers. Levi's has not commented. Similar suits have targeted other importers, with some, like UPS, agreeing to price reductions. No legal precedent exists for mandatory refunds.

Levi Strauss & Co. (LEVI) CEO Michelle Gass admitted the company missed the U.S. shift to low-rise jeans during the back-to-school season, impacting its direct-to-consumer sales. Despite a 4% revenue increase to $1.6 billion in Q3, shares fell nearly 5%. Levi's has since refocused marketing on low-rise styles and expects full-year revenue growth of about 6%.

Levi Strauss reported Q3 revenue of $1.6B, up 4%, with adjusted EPS of $0.48. Revenue grew in Europe and Asia, while U.S. revenue declined 1%. The company raised its 2026 EPS outlook and plans a $100M share repurchase program. Direct-to-consumer sales underperformed expectations.

Levi Strauss reported mixed results: European revenue rose 4-5%, Asia saw 5-10% growth, and Signature brand revenue jumped 13%. The company raised its adjusted earnings forecast to $1.54-$1.56 per share but lowered its revenue growth outlook to ~7%. CEO Michelle Gass noted increased competition in the denim market, emphasizing the need for innovation to maintain market share.

BNP Paribas Exane raised its price target for Levi Strauss (LEVI) to $35, citing strong revenue growth and margins. The company reported Q3 revenue of $1.6B, up 4.3%, and EPS of $0.48, beating some estimates. Analysts note challenges in direct-to-consumer sales but see long-term growth potential. Other firms adjusted targets, ranging from $22 to $27.

Levi's raised its annual adjusted profit forecast to $*.** to $*.** and estimated organic revenue growth of *% for fiscal year ****. Q3 revenue missed estimates at $*.** billion, though EPS rose to $*.** from $*.** a year earlier, aided by tariff refunds.