Levi Strauss finds growth beyond its denim roots
LEVI•Levi Strauss raised its annual profit forecast, aided by tariff refunds, and is counting on holiday demand for premium denim and sweaters. Analysts said newer categories including tops and women's apparel account for about half of the company's growth.
1. Growth beyond denim
Barclays said Levi Strauss' push beyond denim is gaining traction, with tops, women's apparel and newer lifestyle categories accounting for about half of the company's growth while it maintains its U.S. denim leadership.
2. Analysts see rebound
J.P. Morgan said weaker direct-to-consumer performance may be a short-lived issue tied to hot weather in Europe and a misread of U.S. denim trends, with sales already rebounding into the current quarter. BTIG cited improving demand and strength in wholesale, international markets and newer categories as support for a stronger holiday-season and 2027 outlook. Needham said weakness in Levi's stores and website appeared to be reversing.
