Levi Strauss & Co. (LEVI) is executing a notable turnaround under CEO Michelle Gass, who has spearheaded “Project Fuel” since 2023. This initiative emphasizes a shift from wholesale to direct-to-consumer sales, aiming to enhance profit margins through stronger customer relationships. Alongside cost reductions and a focus on higher-margin products, these strategies have already yielded results, with a reported 14% increase in net revenues for Q1 2026.
The stock has surged 56% over the past year, buoyed by robust growth expectations and an optimistic outlook, as Levi’s raised its full-year guidance for revenue, margins, and earnings per share. The company also offers a competitive annual dividend of $0.56 per share, reflecting a 5% increase from the previous year.
Despite trading near its 52-week high, Levi’s valuation at 20 times earnings remains attractive given its growth trajectory, making it a compelling buy-and-hold candidate for investors looking for long-term potential in the apparel sector.
Source: fool.com