Why Levi Strauss (LEVI) is back on investors’ radar

Levi Strauss (LEVI) is drawing fresh attention after its Spanish subsidiary entered Colombia, generating €31 million in its first year and reporting €90.16 million in consolidated turnover for fiscal 2024.

At a share price of $21.75, Levi Strauss has a year to date share price return of 4.47%, while its 1 year total shareholder return of 28.54% suggests momentum has been building as investors weigh this Colombia expansion against broader growth and risk considerations.

If Levi’s international push has your attention, it could be a good moment to widen your watchlist with auto manufacturers as the next set of brands competing for consumer spending.

With Levi Strauss trading at $21.75 alongside a 14% intrinsic discount estimate and a 25% gap to the latest price target, the key question is simple: is there real upside left here or is the market already pricing in future growth?

Most Popular Narrative: 20.4% Undervalued

With Levi Strauss last closing at $21.75 against a narrative fair value of $27.31, the current setup hinges on how long term earnings power is assessed.

Levi's decisive shift to a Direct-to-Consumer-first business, now representing over half of sales, is delivering higher margins (DTC EBIT up 400bps YTD), greater control over brand experience, and faster innovation cycles, driving sustained improvements in net margins and future earnings.

Want to see how modest revenue growth, rising margins and a lower future P/E are combined to justify that higher fair value? The full narrative lays out the detailed earnings path, the assumed profitability reset, and the valuation multiple that needs to hold for this pricing gap to close.

Result: Fair Value of $27.31 (UNDERVALUED)

However, this hinges on Levi’s core brand remaining resilient and on tariff or cost pressures not eroding the margin gains that underpin the current upside case.

Build Your Own Levi Strauss Narrative

If you see the numbers differently or want to stress test your own assumptions, you can build a custom Levi Strauss view in just a few minutes by starting with Do it your way.

A great starting point for your Levi Strauss research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.