Levi Strauss (LEVI) Stock Forecast & Price Target

Levi Strauss & Co. has demonstrated strong revenue growth, recording a 7.0% increase to $1.543 billion in its fiscal third quarter, surpassing consensus expectations. The company's performance across different regions showed resilience, with Asia leading the charge at a 12% growth, while the Americas and Europe also contributed positively with increases of 7% and 3%, respectively. Additionally, the revitalization of Levi's tops business through an improved direct-to-consumer strategy resulted in a notable 16% year-over-year growth, indicating a successful alignment with consumer preferences and a solid foundation for future expansion.

Levi Strauss & Co. is forecasting a 3% decline in revenues, influenced by a notable headwind from the previous year's 53rd week sales and ongoing pressures from foreign exchange fluctuations. The company anticipates challenges in maintaining its gross margins, expecting an 80-basis-point headwind for the fourth quarter and an overall 20-basis-point headwind for the full year due to factors such as increased tariffs and the exit from Denizen footwear. Additionally, the projected operating margin for Q3FY25 at 11.2% is down 110 basis points year-over-year, indicating weaker financial performance compared to consensus expectations.