Levi Strauss shares jump 7% on raised outlook; analysts increase price targets

Levi Strauss & Co. shares surged more than 7% in premarket trading on Friday after the company raised its full-year revenue and profit forecast, driven by strong second-quarter results and robust demand across its stores and digital channels.

The upbeat outlook marks a vote of confidence in Levi’s ongoing transformation into a direct-to-consumer (DTC)-led lifestyle brand.

The denim maker has been investing heavily in its core product offerings and expanding categories like denim dresses, skirts, and women’s athleisure through its Beyond Yoga brand.

These moves have helped it attract younger consumers and build brand loyalty in a competitive retail landscape.

Second-quarter results beat Wall Street expectations on both revenue and profit.

Analysts pointed to the company's strong operational execution and growing international footprint as key drivers.

Tariff risk met with supply chain shift

Despite escalating trade tensions, Levi’s maintained its optimistic outlook.

President Donald Trump’s 30% tariffs on China and 10% on several other countries have been accounted for in the company’s updated forecast, according to management.

To mitigate these headwinds, Levi's is actively diversifying its sourcing away from China.

It is ramping up production in countries like Bangladesh and Cambodia—though the company acknowledged its outlook does not yet factor in Trump's proposed 35–36% tariffs on imports from those nations, set to take effect August 1.

Levi’s global footprint offers some insulation: roughly 60% of its revenue comes from outside the US.

International revenue rose 10% in the quarter, led by Europe, while US revenue grew 7%.

Analysts raise targets as earnings beat

Analysts responded positively to Levi’s quarterly performance.

Dana Telsey of Telsey Advisory Group described the results as “impressive” and praised the company for raising guidance despite the uncertain tariff landscape.

J.P. Morgan raised its price target on Levi Strauss to $23 from $18, maintaining an Overweight rating.

Analyst Matthew Boss noted strong traction in women’s products and DTC execution.

Stifel lifted its target to $24 from $20, citing revenue that exceeded expectations by $85.6 million and earnings per share that beat estimates by $0.09.

It emphasized Levi’s balanced execution and growing confidence in its second-half outlook.

Wells Fargo went further, upping its target to $25 from $22 while keeping an Overweight rating.

It called the company’s tone “prudent” and noted strong demand momentum heading into the third and fourth quarters.

Valuation and outlook

Levi’s stock trades at 14.92 times forward earnings, more attractively valued than Ralph Lauren (20.32x) and above Abercrombie & Fitch (8.46x), according to LSEG.

The company expects 3–4% revenue growth in the third quarter and remains cautiously optimistic for the year-end despite tariff uncertainty.

Analysts believe Levi’s combination of global scale, growing brand relevance, and a strong DTC channel leaves it well-positioned to navigate challenges and capitalize on demand trends.