Levi Strauss: Strong DTC Sales At A Cheap P/E Multiple

Levi Strauss is poised for continued outperformance, driven by robust sales momentum and a compelling valuation. LEVI's Q2 beat-and-raise, fueled by accelerated marketing and strong comparable sales growth, underpins my reiterated buy rating. The company’s focus on its core brand, high-teens growth in value-oriented segments, and ~60% gross margins support a bullish thesis. Raised FY26 outlook, aided by a weaker U.S. dollar and operational discipline, further strengthens the investment case.

As we head into the second half of 2026, I think the biggest shift that investors should be prepared for is a sharp rotation in the stock market. While my macro view is an S&P 500.