NYSE:LEVI
LEVI STRAUSS & CO
A global leader in authentic denim heritage offering high-quality apparel, footwear, and accessories while driving digital engagement and sustainable innovation.
Key Metrics
Investment Thesis
Bull Case
Levi Strauss offers a compelling buy opportunity for investors seeking exposure to the resilient denim super-category, backed by its powerful brand equity and consistent cash flow generation of over $529M. The recent surge in net income demonstrates the company's ability to navigate macroeconomic headwinds while maintaining pricing power and operational efficiency.
Bear Case
Investors should exercise caution due to the recent volatility in earnings, with profits swinging from $210M to $578M over four years, which may reflect non-recurring items rather than sustainable growth trends. Additionally, the company faces significant pressure from changing consumer preferences and the need for continuous heavy capital expenditures of $221.4M to maintain retail relevance.
About LEVI STRAUSS & CO
Levi Strauss & Co. designs, markets, and distributes premium denim apparel and accessories globally through its iconic brands, including Levi's® and Dockers®, serving consumers across North America, Europe, Asia, and Latin America.
Analysis
Management Discussion
Despite a slight revenue decline to $6.28B in the latest period, the company delivered a significant net profit of $578.1M, indicating strong operational leverage and cost control. This robust profitability contrasts sharply with previous years' lower earnings, suggesting a recovery in margins or one-time gains from divestitures that boosted the bottom line.
Industry Overview
The global apparel industry is highly competitive with low barriers to entry but high customer loyalty for established heritage brands like Levi Strauss. Companies in this sector must constantly innovate in sustainability and digital experiences to retain market share against agile fast-fashion competitors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.17B | $6.18B | $6.36B | $6.28B |
| Cost of Revenue | $2.62B | $2.66B | $2.54B | $2.40B |
| Gross Profit | $3.55B | $3.52B | $3.82B | $3.88B |
| Operating Expenses | $2.90B | $3.16B | $3.55B | $3.20B |
| Operating Income | $646.5M | $353.3M | $264.1M | $677.6M |
| G&A | $2.89B | $3.07B | $3.25B | $3.17B |
| Stock-Based Comp | $60.8M | $74.4M | $62.8M | $81.6M |
| D&A | $158.9M | $165.3M | $193.2M | $206.3M |
| Depreciation | $154.6M | $160.9M | $188.4M | $201.1M |
| Amortization | $4.3M | $4.4M | $4.8M | — |
| Other OpEx | $9.1M | $90.2M | $305.6M | $27.0M |
| Non-Operating Income | $3.1M | $-88.1M | $-45.1M | $-43.6M |
| Interest Expense | $25.7M | $45.9M | — | — |
| Pre-Tax Income | $649.6M | $265.2M | $219.0M | $634.0M |
| Income Tax | $80.5M | $15.6M | $8.4M | $132.0M |
| Continuing Ops | $569.1M | $249.6M | $210.6M | $502.0M |
| Discontinued Ops | $0 | $0 | $0 | $76.1M |
| Net Income | $569.1M | $249.6M | $210.6M | $578.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $569.1M | $249.6M | $210.6M | $578.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.83B | $2.64B | $2.85B | $3.15B |
| Cash & Equivalents | $429.6M | $398.8M | $690.0M | $757.9M |
| Marketable Securities | $70.6M | $0 | — | $90.9M |
| Accounts Receivable | $697.0M | $752.7M | $710.0M | $774.7M |
| Inventory | $1.42B | $1.29B | $1.24B | $1.24B |
| Prepaid Expenses | $213.9M | $196.0M | $211.7M | $238.5M |
| Other Current Assets | $0 | $0 | $0 | $54.0M |
| Long-Term Assets | $3.21B | $3.42B | $3.52B | $3.70B |
| PP&E (Net) | $622.8M | $680.7M | $698.7M | $681.8M |
| Intangibles | $286.7M | $267.6M | $196.6M | $194.4M |
| Goodwill | $365.7M | $303.7M | $277.6M | $280.6M |
| Operating Leases | $970.0M | $1.03B | $1.09B | $1.15B |
| Other LT Assets | $964.7M | $1.13B | $1.26B | $1.39B |
| Total Assets | $6.04B | $6.05B | $6.38B | $6.85B |
| Current Liabilities | $1.98B | $1.79B | $2.01B | $2.03B |
| Accounts Payable | $657.2M | $567.9M | $663.4M | $597.6M |
| Current Leases | $235.7M | $245.5M | $253.3M | $260.7M |
| Other Current Liab | $1.09B | $974.1M | $1.09B | $1.17B |
| Long-Term Liabilities | $2.15B | $2.22B | $2.39B | $2.54B |
| Long-Term Debt | $984.5M | $1.01B | $994.0M | $1.04B |
| LT Operating Leases | — | — | — | $1.01B |
| Other LT Liab | $308.9M | $297.2M | $440.0M | $492.9M |
| Total Liabilities | $4.13B | $4.01B | $4.41B | $4.57B |
| Shareholders' Equity | $1.90B | $2.05B | $1.97B | $2.28B |
| Retained Earnings | $1.70B | $1.75B | $1.67B | $1.90B |
| Total L&E | $6.04B | $6.05B | $6.38B | $6.85B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $569.1M | $249.6M | $210.6M | $578.1M |
| Non-Cash Adjustments | $-1.63B | $242.0M | $906.2M | $-296.7M |
| Working Capital Changes | $1.29B | $-56.1M | $-218.4M | $248.2M |
| Cash from Operations | $228.1M | $435.5M | $898.4M | $529.6M |
| Capital Expenditures | $267.1M | $315.5M | $227.5M | $221.4M |
| Cash from Investing | $-235.7M | $-240.7M | $-281.1M | $-68.7M |
| Share Buybacks | $175.7M | $8.1M | $90.1M | $30.5M |
| Dividends Paid | $174.3M | $190.5M | $198.5M | $212.9M |
| Cash from Financing | $-365.4M | $-214.1M | $-319.3M | $-400.2M |
| FX Effect | $-7.6M | $-11.6M | $-6.8M | $7.2M |
| Net Change in Cash | $-380.6M | $-30.9M | $291.2M | $67.9M |
| Beginning Cash | $810.6M | $430.0M | $398.8M | $690.0M |
| Ending Cash | $430.0M | $399.1M | $690.0M | $757.9M |
Frequently Asked Questions
How does LEVI STRAUSS & CO make money?
Revenue is primarily driven by wholesale partnerships with department stores and specialty retailers, direct-to-consumer sales via owned retail locations and e-commerce platforms, licensing of brands to third-party licensees, and international operations leveraging diverse geographic markets.
What are the main risks for LEVI?
Volatile consumer spending patterns in discretionary categories like apparel, intense competition from fast fashion and private label brands, currency exchange rate fluctuations impacting international earnings, and potential supply chain disruptions affecting inventory management.
What is LEVI's competitive advantage?
The company owns one of the world's most recognizable brand portfolios in denim, possesses deep historical heritage that drives consumer loyalty, and operates a highly efficient global supply chain with strong digital infrastructure for direct consumer engagement.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.