Levi Strauss & Co.: 2Q Beat & Raise On Underlying Top-Line Acceleration; OW Raising PT to $33

Research evidence excerpt

Levi Strauss & Co.: 2Q Beat & Raise On Underlying Top-Line Acceleration; OW Raising PT to $33

Matthew R. Boss, CPA AC North America Equity Research

(1-212) 622-2630 09 July 2026 J P M O R G A N

matthew.boss@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

We rate LEVI Overweight. We see a multi-year mid-teens(+)

TSR profile as Levi’s total-addressable-market expansion as a

denim lifestyle apparel brand has translated to (i) accelerated

global demand momentum & new customer acquisition notably

at the younger 18-30 year old customer demographic transacting

at higher AURs & greater purchase frequency, (ii) gross margin

expansion of +370bps TTM on structural mix tailwinds (i.e.,

DTC > Wholesale), product cost savings (input costs/SKU

rationalization), and improved full-price selling (early innings

YTD 1m 3m 12m opportunity today), and (iii) a structurally improved profitability

Abs 17.5% 5.8% 11.7% 24.8% profile following the exit of the lower-margin Denizen,

Rel 8.2% 4.8% 1.4% 4.7%

European footwear, and Dockers segments (w/ Dockers exit

Company Data alone driving +50bps of annual EBIT margin accretion).

Shares O/S (mn) 394

Valuation52-week range ($) 25.58-17.72

Market cap ($ mn) 9,606.58 We are raising our December ‘26 PT to $33 (vs. prior $32) based

Exchange rate 1.00 on 19x our 2027 EPS (supported by our linear regression

Free float (%) 97.3%

3M ADV (mn) 2.92 analysis relative to LEVI’s 3-yr pre-pandemic average multiple

3M ADV ($ mn) 66.2 of 18x with adj. EBITDA today ~300bps higher).

Volatility (90 Day) 36

Index S&P 500

BBG ANR (Buy | Hold | Sell) 13|3|0 Performance Drivers

Key Metrics (FYE Nov)

$ in millions FY25A FY26E FY27E

Financial Estimates

Revenue 6,282 6,756 7,159

Adj. EBITDA 925 1,037 1,164

Adj. EBIT 719 811 924

Adj.