Key Stats for Levi Strauss Stock
- Price change for Levi Strauss stock: 11%
- $LEVI Stock Price as of Apr. 7: $20
- 52-Week High: $25
- $LEVI Stock Price Target: $27
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What Happened?
Levi Strauss (LEVI) stock moved higher on Tuesday after the denim maker posted a strong Q1 that beat expectations on both the top and bottom line.
- Revenue came in at $1.74 billion, up 14% from a year ago, well ahead of the $1.65 billion analysts had expected.
- Adjusted EPS hit $0.42, beating the $0.37 consensus estimate.
- Net income rose to $175.8 million, up from $135 million a year earlier.
- The standout number was DTC.
- Direct-to-consumer sales — through Levi’s own stores and website — jumped 16% and now make up 52% of total revenue. That’s a milestone. For a company built on wholesale partnerships, reaching the halfway mark in DTC shows the strategy is working.
- Wholesale was up 8% in the quarter, better than expected.
CEO Michelle Gass said she expects DTC to stay above 50% of revenue for the full year, even as wholesale continues to grow.
Growth came from both higher prices and more units sold — roughly a 50/50 split, according to CFO Harmit Singh, who also announced plans to retire on Tuesday.
- Levi’s loyalty program now has 46 million members globally, up 17% year-on-year.
- The company raised its full-year guidance following the beat. Levi now expects full-year adjusted EPS of $1.42 to $1.48 and sales growth of 5.5% to 6.5%.
- On tariffs, Levi Strauss stock could get an additional boost later in the year.
- The company’s current guidance assumes a 20% global tariff rate, but if the 10% rate currently in effect holds, it could add $35 million to earnings, or about $0.07 per share.
- There’s also a potential $80 million refund following the Supreme Court’s ruling striking down Trump’s earlier tariff policy.
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What the Market Is Telling Us About Levi Strauss Stock
Levi Strauss stock has had a rough year, down around 5% heading into earnings. Tuesday’s beat gives investors a reason to reassess.
- The DTC milestone matters because it signals higher margins over time.
- The near-term risk is consumer spending. Gas prices are rising, and shoppers may pull back on discretionary items like clothing.
- Gass said she hasn’t seen that yet, and Levi’s broad brand segmentation — from value-oriented Signature to premium Blue Tab — gives the company exposure across income levels.
For now, Levi Strauss stock looks like it’s benefiting from a business that’s executing well in a tough environment.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
