Levi Strauss & falls 2.4% after quarterly results and guidance update

What happened

Levi Strauss & (LEVI) fell 2.4% on October 8, 2026, after its third-quarter results beat EPS estimates, but management set fiscal 2026 revenue guidance below a cited $6.8 billion estimate. The company reported adjusted earnings per share of $0.48, 34.0% above estimates, and quarterly revenue of $1.61 billion. Management updated fiscal 2026 guidance to revenue of $6.7 billion and an EPS range of 1.540-1.560. The stock closed at $19.05 after opening 2.6% below the previous close, and trading volume was 3.9 times its 20-day average.

How big was the move

The stock fell 2.4% on the session and fell 4.4% over the last five sessions, a pullback that was 1.3 times a typical daily move for this stock. The S&P 500 fell 0.5% on the day while the Consumer Cyclical sector median rose 0.6%, leaving the stock 2.9 percentage points worse than the sector median. The stock’s market sensitivity is captured by a beta of 1.09, which indicates the stock tends to move about as much as the market.

Earnings were released at the session, so the results were the direct cause of the move. Investors weighed a sizable EPS beat against revenue guidance that came in below a cited $6.8 billion estimate, prompting a short-term negative reaction despite margin improvements.

The technical picture

The stock traded below several moving averages: 4.0% below its 20-day moving average, 10.4% below its 50-day moving average and 12.4% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) was 34, inside a neutral range, and the stock was 25.9% below its 52-week high.

Price performance has been weak over longer horizons. The stock fell 6.4% over one month, fell 21.6% over three months and fell 22.1% over one year, leaving it 37.8 percentage points behind the S&P 500 over the past year. Volatility was 30% annualized over 60 days, lower than 91% of its own readings over five years, which suggests recent moves have been steadier than past spikes.

Fundamentals and valuation

For the four quarters through August 30, 2026, Levi Strauss & reported revenue of $6.68 billion, which grew 5.1% from a year earlier and followed revenue growth of 4.5% one quarter earlier. Diluted earnings per share were $1.50, and earnings per share growth fell 1.3% from a year earlier. Gross margin improved to 62.8% from 61.9% a year earlier, and operating margin widened to 13.0% from 10.7%. Free-cash-flow margin was 9.9% and return on invested capital was 12.7%. The balance sheet showed net debt of 1.6 times EBITDA, and share count over one year decreased by 2.2%.

On valuation, the stock traded at 12.7 times trailing earnings and 12.4 times expected earnings, with a free-cash-flow yield of 8.5%. That price to trailing earnings is lower than 76% of its own readings over the past five years, compared with a five-year median of 15.1 times earnings. PromtFinance scores ranked the company strongly on Value (82) and Quality (87), positively on Growth (66) and Stability (69), very weak on Momentum (29) and exceptionally on Revisions (98).

Taken together, the fundamentals show steady revenue growth and margin expansion, while the stock’s valuation sits below its recent history. Investors may view the lower revenue guidance as a near-term headwind despite profitability gains and strong free-cash-flow yield.

Earnings and analyst expectations

Levi’s last report, issued October 7, 2026, showed adjusted EPS of $0.48 against $0.36 expected, 34.0% above estimates, extending a streak of 15 consecutive quarters beating estimates. The company’s average surprise over the last four reports was 17.1% above estimates, and its typical two-day reaction after recent reports fell 1.6%.

Management updated fiscal 2026 guidance to EPS of 1.540-1.560 and revenue guidance of $6.7 billion; the EPS range was around consensus while the revenue guidance was below a cited $6.8 billion estimate. Nineteen analysts covered the stock; the consensus rating was Buy and 79% of ratings were Buy. The consensus price target stood at $28.80, 51.2% above the closing price.

News coverage highlighted the mixed message from the quarter. Reports cited international markets, wholesale strength and growth in non-denim product categories as drivers, while softer store traffic in the U.S. and Europe weighed on direct-to-consumer sales, according to Seeking Alpha and Zacks Investment Research. Coverage also noted the company benefited from tariff refunds and raised margin outlook even as direct-to-consumer growth lagged, according to Zacks Investment Research and MarketBeat.

What to watch

• January 27, 2027: next earnings report date
• Fiscal 2026 guidance: EPS 1.540-1.560 and revenue $6.7 billion (below a cited $6.8 billion estimate)
• Analyst consensus price target $28.80, 51.2% above the closing price
• Recent trading: opened 2.6% below the previous close and traded at 3.9 times its 20-day average
• Comparative performance: one year versus the S&P 500 was 37.8 percentage points behind the S&P 500