Levi Strauss & Co. (NYSE:LEVI) Shares Gap Up on Earnings Beat

Levi Strauss & Co. (NYSE:LEVI) shares gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $19.71, but opened at $22.65. Levi Strauss & Co. shares last traded at $21.8360, with a volume of 2,782,425 shares traded.

The blue-jean maker reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.37 by $0.05. Levi Strauss & Co. had a return on equity of 25.08% and a net margin of 9.20%.The firm had revenue of $1.74 billion for the quarter, compared to the consensus estimate of $1.65 billion. During the same period in the previous year, the business earned $0.38 EPS. The firm’s revenue for the quarter was up 14.1% on a year-over-year basis.

Levi Strauss & Co. Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 6th. Investors of record on Wednesday, April 22nd will be paid a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 2.6%. The ex-dividend date is Wednesday, April 22nd. Levi Strauss & Co.’s payout ratio is 38.36%.

Key Headlines Impacting Levi Strauss & Co.

Here are the key news stories impacting Levi Strauss & Co. this week:

• Positive Sentiment: Q1 beat and raised full‑year guidance — Levi reported $1.74B revenue (vs. $1.65B est.) and $0.42 adj. EPS (vs. $0.37 est.), and lifted FY revenue and EPS ranges, which directly fueled the rally. Levi Strauss Q1 Results (Business Wire)
• Positive Sentiment: DTC momentum — Direct‑to‑consumer sales now account for ~52% of net revenue, supporting higher margins, better customer economics, and faster top‑line growth as Levi pushes a “DTC‑first” strategy. Levi DTC Sales Surpass Half of Total Revenue (PYMNTS)
• Positive Sentiment: Shareholder returns and capital actions — Company returned $214M in Q1 (including $54M dividends) and launched a $200M accelerated share repurchase, signaling cash generation and buyback support for the stock. MarketBeat coverage of Levi results & capital returns
• Positive Sentiment: Analyst support — Firms have reaffirmed buys and some raised targets (example: UBS raised its price target to $34), adding upside to the consensus outlook and boosting investor conviction. Analyst notes (Benzinga)
• Neutral Sentiment: Options and trading activity — Unusually large call‑option volume shows elevated bullish positioning but could amplify intraday volatility rather than change fundamentals.
• Neutral Sentiment: Brand/marketing tailwinds — Pop culture exposure (a hit show boosting demand for a core 517 style) helped sell‑through in the quarter; useful for momentum but not a guaranteed long‑term driver. Levi style boost from TV show (Invezz)
• Neutral Sentiment: CFO transition announced — Longtime CFGO Harmit Singh plans to retire after a transition; company has started a search and Singh will stay through a handover, reducing immediate operational risk but creating leadership change. CFGO retirement announcement (Business Wire)
• Negative Sentiment: Macro and tariff risks — Management’s guidance assumes no significant deterioration from tariffs, inflation, supply‑chain issues or currency moves; rising input or transport costs and geopolitical shocks could pressure margins and growth. Macro/tariff risk discussion (Reuters)
• Negative Sentiment: Portion of growth tied to price increases — Management and some coverage note a meaningful part of recent revenue growth reflects higher prices versus pure volume gains, which could limit sustainability if consumers pull back. Pricing vs. volume discussion (CNBC)

Analyst Upgrades and Downgrades

LEVI has been the subject of a number of research reports. BTIG Research reaffirmed a “buy” rating and set a $27.00 price target on shares of Levi Strauss & Co. in a research report on Wednesday. UBS Group lifted their price target on Levi Strauss & Co. from $33.00 to $34.00 and gave the stock a “buy” rating in a research report on Wednesday. Wall Street Zen cut Levi Strauss & Co. from a “buy” rating to a “hold” rating in a research report on Saturday, January 31st. Weiss Ratings raised Levi Strauss & Co. from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, February 24th. Finally, Telsey Advisory Group reaffirmed an “outperform” rating and set a $27.00 price target on shares of Levi Strauss & Co. in a research report on Wednesday, April 1st. Twelve research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $26.77.

Insider Activity

In other news, SVP David Jedrzejek sold 7,093 shares of the business’s stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $21.38, for a total value of $151,648.34. Following the completion of the transaction, the senior vice president owned 98,193 shares of the company’s stock, valued at $2,099,366.34. The trade was a 6.74% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Jason Gowans sold 40,000 shares of the business’s stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $21.83, for a total value of $873,200.00. Following the completion of the transaction, the executive vice president directly owned 92,199 shares of the company’s stock, valued at approximately $2,012,704.17. This trade represents a 30.26% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 49,341 shares of company stock valued at $1,068,909. Insiders own 1.08% of the company’s stock.

Hedge Funds Weigh In On Levi Strauss & Co.

A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in Levi Strauss & Co. by 3.8% in the 4th quarter. Vanguard Group Inc. now owns 9,320,747 shares of the blue-jean maker’s stock worth $193,312,000 after purchasing an additional 342,009 shares during the period. Goldman Sachs Group Inc. raised its holdings in Levi Strauss & Co. by 44.0% in the 4th quarter. Goldman Sachs Group Inc. now owns 4,243,680 shares of the blue-jean maker’s stock worth $88,014,000 after purchasing an additional 1,296,474 shares during the period. Balyasny Asset Management L.P. raised its holdings in Levi Strauss & Co. by 9.3% in the 3rd quarter. Balyasny Asset Management L.P. now owns 3,457,702 shares of the blue-jean maker’s stock worth $80,564,000 after purchasing an additional 294,053 shares during the period. GW&K Investment Management LLC raised its holdings in Levi Strauss & Co. by 31.5% in the 4th quarter. GW&K Investment Management LLC now owns 2,219,599 shares of the blue-jean maker’s stock worth $46,034,000 after purchasing an additional 531,963 shares during the period. Finally, Ameriprise Financial Inc. raised its holdings in Levi Strauss & Co. by 83.4% in the 2nd quarter. Ameriprise Financial Inc. now owns 1,958,271 shares of the blue-jean maker’s stock worth $36,208,000 after purchasing an additional 890,752 shares during the period. Institutional investors and hedge funds own 69.14% of the company’s stock.

Levi Strauss & Co. Stock Up 10.7%

The company has a market cap of $8.52 billion, a price-to-earnings ratio of 14.95, a PEG ratio of 1.50 and a beta of 1.34. The company has a current ratio of 1.55, a quick ratio of 0.94 and a debt-to-equity ratio of 0.46. The business has a fifty day moving average of $20.09 and a two-hundred day moving average of $21.09.

About Levi Strauss & Co.

Levi Strauss & Co is a global apparel company best known for its denim jeans and casual wear. Founded in 1853 in San Francisco by Bavarian immigrant Levi Strauss, the company pioneered the modern blue jean with the introduction of rivet-reinforced work pants. Over its more than 160-year history, Levi Strauss has evolved into a lifestyle brand, offering a broad portfolio that includes denim for men, women and children, as well as tops, outerwear, footwear and accessories.

The company’s flagship label, Levi’s®, is recognized worldwide for its iconic styles such as the 501® Original Fit Jeans, while additional brands, including Dockers®, Target core metric, and Denizen® by Levi’s, cater to diverse price points and consumer segments.