Wells Fargo Names Levi Strauss a Top Consumer Pick Amid Underperformance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 23 2026
0mins
Should l Buy LEVI?
Source: seekingalpha
- Market Outlook Positive: Wells Fargo analyst Ike Bochurow noted that Levi Strauss's stock has underperformed recently, pushing its valuation below historical norms, with expectations that sentiment will shift as margin concerns transition to margin visibility, particularly into 2027.
- Rating and Price Target: Levi Strauss received an Overweight rating from Wells Fargo, with a price target set at $25, as it is well-positioned in the current macroeconomic environment with one of the lowest COGS exposures to China in the apparel sector.
- Strong Brand Influence: Due to its strong brand recognition, minimal pricing demand destruction is anticipated, which will help Levi Strauss maintain market share and drive future growth.
- Sales Growth Momentum: Levi Strauss is showing accelerating strength in its direct-to-consumer business, while its global wholesale operations are also gaining momentum, reflecting the company's competitiveness and adaptability in the market.
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Analyst Views on LEVI
Wall Street analysts forecast LEVI stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 18.260
Low
26.00
Averages
26.50
High
27.00
Current: 18.260
Low
26.00
Averages
26.50
High
27.00
About LEVI
Levi Strauss & Co. is an apparel company. The Company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Levi Strauss Signature, and Beyond Yoga brands. The Company operates through three geographical segments: Americas, Europe and Asia. It designs, markets and sells directly or through third parties and licensees’ products that include jeans, casual and dress pants, activewear, tops, shorts, skirts, dresses, jackets and related accessories for men, women and children around the world. Its products are sold in approximately 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,300 retail stores and shop-in shops. Outside the United States, department stores, specialty retailers, franchised or other brand-dedicated stores and shop-in-shops have traditionally been its primary distribution channels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Levi Strauss to Host Q1 2026 Earnings Call
- Earnings Call Announcement: Levi Strauss will host a conference call on April 7, 2026, at 2 PM PT to discuss its Q1 financial results, with CEO Michelle Gass and CFO Harmit Singh leading the discussion to provide insights into the company's performance.
- Registration and Access: Investors are required to pre-register to receive dial-in details, ensuring that participants can smoothly access the call, which enhances transparency and investor engagement.
- Live Webcast and Replay: The event will be available via live webcast, with a replay accessible approximately two hours post-event on the company's investor website, allowing those unable to attend live to catch up on critical information and fostering better communication with investors.
- Company Overview: Levi Strauss is one of the world's largest apparel brands, reporting net revenues of $6.3 billion in 2025, with products sold in approximately 120 countries, highlighting its extensive market reach and brand strength, further solidifying its leadership in the jeanswear sector.
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Wells Fargo Names Levi Strauss a Top Consumer Pick Amid Underperformance
- Market Outlook Positive: Wells Fargo analyst Ike Bochurow noted that Levi Strauss's stock has underperformed recently, pushing its valuation below historical norms, with expectations that sentiment will shift as margin concerns transition to margin visibility, particularly into 2027.
- Rating and Price Target: Levi Strauss received an Overweight rating from Wells Fargo, with a price target set at $25, as it is well-positioned in the current macroeconomic environment with one of the lowest COGS exposures to China in the apparel sector.
- Strong Brand Influence: Due to its strong brand recognition, minimal pricing demand destruction is anticipated, which will help Levi Strauss maintain market share and drive future growth.
- Sales Growth Momentum: Levi Strauss is showing accelerating strength in its direct-to-consumer business, while its global wholesale operations are also gaining momentum, reflecting the company's competitiveness and adaptability in the market.
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Lululemon's Earnings Report Reveals Challenges and Opportunities
- Weak Revenue Growth: Lululemon's Q4 revenue rose only 1% to $3.64 billion, surpassing the $3.58 billion estimate, yet comparable sales fell 3% in the Americas, reflecting intensified market competition and weak consumer spending.
- Margin Compression: The company's gross margin shrank from 60.4% to 54.9% due to tariff impacts, leading to a 22% drop in operating profit to $812.3 million, which not only affects short-term profitability but may also influence future investment decisions.
- Gloomy Future Outlook: Lululemon's guidance for 2026 projects revenue of $11.35 billion to $11.5 billion, an increase from $11.1 billion in 2025 but below the $11.52 billion market expectation, indicating management's cautious stance amid ongoing challenges.
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- Earnings Beat: Lululemon reported Q4 revenue of $3.64 billion, surpassing estimates of $3.58 billion, although the 1% year-over-year growth indicates challenges in a sluggish consumer environment.
- Intensifying Competition: The athleisure market's commoditization has led to increased competition for Lululemon, particularly in the U.S., where comparable sales fell 3% in the key Americas segment, suggesting a decline in brand appeal.
- Margin Compression: The company's gross margin decreased from 60.4% to 54.9% due to tariff impacts, resulting in a 22% drop in operating profit to $812.3 million, highlighting significant cost pressures on profitability.
- Disappointing Guidance: Lululemon's 2026 revenue guidance of $11.35 billion to $11.5 billion falls short of the $11.52 billion expected by analysts, with a projected decline in earnings per share, indicating ongoing growth challenges ahead.
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Levi Strauss to Host Q1 2026 Earnings Call
- Earnings Call Announcement: Levi Strauss will host a conference call on April 7, 2026, at 2 PM PT to discuss its Q1 financial results, with CEO Michelle Gass and CFO Harmit Singh leading the discussion to provide insights into the company's performance.
- Registration and Access: Investors are required to pre-register to receive dial-in details, ensuring that participants can smoothly access the call, which enhances transparency and investor engagement.
- Live Webcast and Replay: The event will be available via live webcast, with a replay accessible approximately two hours post-event on the company's investor website, allowing those unable to attend live to catch up on critical information and fostering better communication with investors.
- Company Overview: Levi Strauss is one of the world's largest apparel brands, reporting net revenues of $6.3 billion in 2025, with products sold in approximately 120 countries, highlighting its extensive market reach and brand strength, further solidifying its leadership in the jeanswear sector.
See More
Lululemon's Price Target Decreased: Implications for the Stock.
Stock Performance: Lululemon Athletica's one-year stock chart shows a significant decline, indicating poor performance for shareholders.
Investor Sentiment: Shareholders may face challenges in seeing positive returns for the foreseeable future.
See More
Wells Fargo Names Levi Strauss a Top Consumer Pick Amid Underperformance
- Market Outlook Positive: Wells Fargo analyst Ike Bochurow noted that Levi Strauss's stock has underperformed recently, pushing its valuation below historical norms, with expectations that sentiment will shift as margin concerns transition to margin visibility, particularly into 2027.
- Rating and Price Target: Levi Strauss received an Overweight rating from Wells Fargo, with a price target set at $25, as it is well-positioned in the current macroeconomic environment with one of the lowest COGS exposures to China in the apparel sector.
- Strong Brand Influence: Due to its strong brand recognition, minimal pricing demand destruction is anticipated, which will help Levi Strauss maintain market share and drive future growth.
- Sales Growth Momentum: Levi Strauss is showing accelerating strength in its direct-to-consumer business, while its global wholesale operations are also gaining momentum, reflecting the company's competitiveness and adaptability in the market.
See More
Latest Ratings and Price Target Changes on Wall Street
- Apple Rating Reiterated: Bank of America reiterates its buy rating on Apple, lowering its price target from $325 to $320, yet remains optimistic about the foldable iPhone in 2026, which is expected to drive future sales growth.
- Cemex Upgraded to Overweight: Morgan Stanley upgrades Cemex from equal weight to overweight, highlighting the company's leading position in margin protection and a robust balance sheet that supports future growth prospects.
- Nvidia Maintains Outperform Rating: Bernstein reiterates its outperform rating on Nvidia, asserting that the datacenter opportunity is enormous and still in its early stages, with significant upside potential ahead.
- Cheniere Energy Upgraded to Overweight: Morgan Stanley upgrades Cheniere Energy, citing its largely contracted portfolio that provides stable cash flows and better margins and growth prospects in the LNG market.
See More
Lululemon's Earnings Report Reveals Challenges and Opportunities
- Weak Revenue Growth: Lululemon's Q4 revenue rose only 1% to $3.64 billion, surpassing the $3.58 billion estimate, yet comparable sales fell 3% in the Americas, reflecting intensified market competition and weak consumer spending.
- Margin Compression: The company's gross margin shrank from 60.4% to 54.9% due to tariff impacts, leading to a 22% drop in operating profit to $812.3 million, which not only affects short-term profitability but may also influence future investment decisions.
- Gloomy Future Outlook: Lululemon's guidance for 2026 projects revenue of $11.35 billion to $11.5 billion, an increase from $11.1 billion in 2025 but below the $11.52 billion market expectation, indicating management's cautious stance amid ongoing challenges.
- International Market Potential: Despite challenges, Lululemon expects a 25%-30% revenue increase in China and mid-teens growth in other regions, suggesting that the brand still holds strong growth potential internationally, which could support the company's future recovery.
See More
Lululemon Beats Q4 Estimates but Guidance Falls Short
- Earnings Beat: Lululemon reported Q4 revenue of $3.64 billion, surpassing estimates of $3.58 billion, although the 1% year-over-year growth indicates challenges in a sluggish consumer environment.
- Intensifying Competition: The athleisure market's commoditization has led to increased competition for Lululemon, particularly in the U.S., where comparable sales fell 3% in the key Americas segment, suggesting a decline in brand appeal.
- Margin Compression: The company's gross margin decreased from 60.4% to 54.9% due to tariff impacts, resulting in a 22% drop in operating profit to $812.3 million, highlighting significant cost pressures on profitability.
- Disappointing Guidance: Lululemon's 2026 revenue guidance of $11.35 billion to $11.5 billion falls short of the $11.52 billion expected by analysts, with a projected decline in earnings per share, indicating ongoing growth challenges ahead.
See More
