Why Levi Strauss (LEVI) Stock Shrank 14% Friday Morning
Key Points
Levi Strauss's stock fell as much as 14% Friday morning despite Q3 beats on revenue and EPS.
Management raised full-year guidance but flagged tariff stability and holiday macro risks.
After a 49% six-month rally, LEVI trades around 18.7 times trailing earnings, and that's after Friday's retreat.
- 10 stocks we like better than Levi Strauss & Co. ›
Shares of Levi Strauss (NYSE: LEVI) faded on Friday, like a pair of bleached jeans. The apparel maker reported third-quarter results on Thursday evening, beating Wall Street's estimates on both the top and bottom lines.
The stock still fell as much as 14% in the morning session due to modest management commentary and lofty expectations.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Q3 2025 results and Q4 guidance
Q3 revenues rose 6.9% year over year to $1.54 billion. Levi Strauss saw double-digit growth in Asia and a weaker currency-adjusted increase of 3% in Europe. The analyst consensus had called for $1.50 billion.
On the bottom line, adjusted earnings rose from $0.33 to $0.34 per diluted share. Here, your average analyst would have settled for $0.30 per share.
Management also raised its full-year guidance targets across the board, but wrapped the increases in cautious caveats. Levi Strauss should achieve roughly Street-level guidance targets, but only if tariffs hold steady and consumers don't face macroeconomic pressure in the upcoming holiday season.
On the earnings call, CFO Harmit Singh noted that organic revenue growth held flat in 2023, saw a 3% gain in 2024, and should rise to approximately 6% in the updated 2025 projections. That's an impressive top-line acceleration.
Is Levi Strauss a good buy after the price drop?
This share-price cut took the edge off Levi Strauss's recent gains. The stock has still risen 49% in six months, reflecting strong organic sales even in this unpredictable economy.
Trading at 18.7 times trailing earnings today, Levi Strauss shares are neither terribly expensive nor extremely cheap. If you thought the stock was overvalued yesterday, this could be a good time to pick up lower-priced shares, locking in the effective dividend yield at a generous 2.6%.
Should you invest $1,000 in Levi Strauss & Co. right now?
Before you buy stock in Levi Strauss & Co., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Levi Strauss & Co. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $663,905!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,180,428!*
Now, it’s worth noting Stock Advisor’s total average return is 1,091% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 7, 2025
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
