Levi Strauss Q4 adjusted net income beats estimates

Overview

• Apparel company's Q4 net revenues grew 1% yr/yr, with organic growth at 5%

• Adjusted net income for Q4 beat analyst expectations

• Company announced $200 mln accelerated share repurchase program

Outlook

• Levi Strauss expects FY 2026 net revenues growth of 5% to 6%

• Company projects FY 2026 adjusted diluted EPS of $1.40 to $1.46

• Levi Strauss anticipates FY 2026 adjusted EBIT margin expansion to 11.8% to 12%

Result Drivers

• DTC GROWTH - Direct-to-consumer net revenues increased 8% on a reported basis and 10% on an organic basis, with significant growth in Europe and Asia

• BEYOND YOGA PERFORMANCE - Beyond Yoga brand net revenues increased 37% on a reported basis and 45% on an organic basis, contributing to overall growth

• AMERICAS CHALLENGES - Net revenues in the Americas decreased 4% on a reported basis, with the U.S. flat on an organic basis

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy"

• Wall Street's median 12-month price target for Levi Strauss & Co is $27.00, about 27.1% above its January 27 closing price of $21.25

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw8DMS4Za

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