Levi Strauss Q4 Earnings Miss Estimates, 2026 Guidance Below Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Benzinga
- Quarterly Earnings Performance: Levi Strauss reported Q4 earnings of 41 cents per share, surpassing the Wall Street estimate of 39 cents, indicating some resilience in profitability.
- Revenue Situation: The quarterly revenue reached $1.77 billion, exceeding the market expectation of $1.71 billion, yet down from $1.84 billion in the same period last year, reflecting a trend of slowing sales growth.
- Future Outlook: The company expects adjusted earnings for fiscal 2026 to be between $1.40 and $1.46 per share, below the analyst estimate of $1.48, which may impact investor confidence.
- Market Reaction: In after-hours trading on Wednesday, Levi's stock dipped 1.42% to $20.18, indicating a cautious sentiment from the market in response to the earnings and outlook.
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Analyst Views on LEVI
Wall Street analysts forecast LEVI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LEVI is 26.50 USD with a low forecast of 26.00 USD and a high forecast of 27.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 20.470
Low
26.00
Averages
26.50
High
27.00
Current: 20.470
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, Denizen, Dockers 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 licensee's products that include jeans, casual and dress pants, tops, shorts, skirts, dresses, jackets, footwear, and related accessories for men, women and children around the world. The Company’s products are sold in more than 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,400 retail stores and shop-in-shops. Outside the United States, department stores, specialty retailers, franchised or other brand-dedicated stores and shop-in-shops are 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 & Co. Q4 2025 Earnings Call Highlights
- Revenue Growth: In 2025, Levi Strauss achieved a 7% organic net revenue growth, with DTC business growing by 11%, demonstrating the company's successful transformation into a DTC-first, comprehensive denim lifestyle retailer, enhancing its market competitiveness.
- Gross Margin Performance: The gross margin for Q4 was 60.8%, contracting by 100 basis points year-over-year primarily due to tariff impacts, but partially offset by pricing actions and higher full-price selling, showcasing the company's efforts in cost control.
- Future Outlook: Management expects organic net revenue growth of 4%-5% in 2026, planning to drive high growth in DTC through the opening of 50 to 60 new doors and continued e-commerce growth, further solidifying its market position.
- Shareholder Returns: In 2025, Levi Strauss returned $363 million to shareholders, a 26% increase from the prior year, reflecting the company's commitment to enhancing shareholder value while maintaining consistent profit growth.
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Levi Strauss Reports Decline in Q4 Profit
- Profit Decline: Levi Strauss reported a Q4 net profit of $158 million, or $0.40 per share, down from $182.5 million and $0.46 per share last year, indicating pressure on the company's profitability.
- Adjusted Earnings: Excluding items, Levi's adjusted earnings were $162.9 million, or $0.41 per share, showing slight improvement but failing to offset the overall profit decline.
- Revenue Growth: The company's revenue rose 0.9% year-over-year to $1.765 billion, slightly above last year's $1.749 billion, indicating stability in sales but not significantly boosting profit growth.
- Market Reaction: Despite revenue growth, the profit decline may impact investor confidence, prompting Levi Strauss to implement measures to enhance profitability in response to future market challenges.
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