| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 32.14 | 62 |
| Intrinsic value (DCF) | 7.16 | -64 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 5.72 | -71 |
Levi Strauss & Co. (NYSE: LEVI) is a global leader in denim and casual apparel, renowned for its iconic Levi's brand, alongside Dockers, Signature by Levi Strauss & Co., and Denizen. Founded in 1853, the company designs, markets, and sells a diverse range of products, including jeans, activewear, tops, footwear, and accessories for men, women, and children. Levi's operates through a hybrid distribution model, selling via third-party retailers, franchisees, and direct-to-consumer channels, including over 3,100 brand-dedicated stores and e-commerce platforms. With a strong presence in the Americas, Europe, and Asia, Levi Strauss & Co. leverages its heritage, brand equity, and licensing agreements to maintain its competitive edge in the $1.5 trillion global apparel industry. The company's commitment to sustainability and innovation, such as its Water<Less® technology, further strengthens its market position in the fast-evolving consumer cyclical sector.
Levi Strauss & Co. presents a compelling investment case with its strong brand recognition, diversified revenue streams, and global footprint. The company's direct-to-consumer (DTC) segment, which accounts for a growing portion of revenue, offers higher margins and greater control over brand positioning. However, risks include exposure to volatile cotton prices, intense competition in the apparel sector, and macroeconomic pressures affecting discretionary spending. With a market cap of ~$7 billion, a beta of 1.14 indicating moderate volatility, and a dividend yield of ~1.5%, LEVI appeals to investors seeking a blend of growth and income. The company's solid operating cash flow ($898M in FY2023) supports its ability to invest in innovation and expansion while maintaining shareholder returns.
Levi Strauss & Co. competes in the highly fragmented global apparel market, where brand loyalty and innovation are critical. Its primary competitive advantage lies in its iconic Levi's brand, which commands premium pricing and customer loyalty. The company's diversified product portfolio and hybrid distribution model (wholesale + DTC) provide resilience against sector volatility. However, it faces stiff competition from fast-fashion brands (e.g., Zara, H&M) offering lower-priced alternatives and luxury denim players (e.g., Diesel, True Religion) targeting high-end consumers. Levi's sustainability initiatives, such as reducing water usage in production, differentiate it from competitors, but smaller, agile brands like Warby Parker (vertically integrated) and Everlane (transparent pricing) challenge its DTC growth. The company's licensing strategy expands its reach but relies on third-party execution. In wholesale, Levi's competes with VF Corporation's Wrangler and Lee brands, which have strong rural market penetration. Levi's global supply chain is a strength, but geopolitical risks and tariff exposures remain concerns.