Denim clothing company Levi's (NYSE: LEVI) beat Wall Street’s revenue expectations in Q4 CY2025, but sales were flat year on year at $1.77 billion. Its non-GAAP profit of $0.41 per share was 4.6% above analysts’ consensus estimates.
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Levi's (LEVI) Q4 CY2025 Highlights:
- Revenue: $1.77 billion vs analyst estimates of $1.71 billion (flat year on year, 3.4% beat)
- Adjusted EPS: $0.41 vs analyst estimates of $0.39 (4.6% beat)
- Adjusted EBITDA: $268.2 million vs analyst estimates of $268.3 million (15.2% margin, in line)
- Adjusted EPS guidance for the upcoming financial year 2026 is $1.43 at the midpoint, missing analyst estimates by 3.4%
- Operating Margin: 11.9%, in line with the same quarter last year
- Free Cash Flow Margin: 12.2%, down from 13.2% in the same quarter last year
- Constant Currency Revenue rose 5% year on year (7% in the same quarter last year)
- Market Capitalization: $8.31 billion
Company Overview
Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE: LEVI) is an apparel company renowned for its iconic denim products and classic American style.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Levi’s 7.1% annualized revenue growth over the last five years was weak. This was below our standard for the consumer discretionary sector and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Levi’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
Levi's also reports sales performance excluding currency movements, which are outside the company’s control and not indicative of demand. Over the last two years, its constant currency sales averaged 5% year-on-year growth. Because this number is better than its normal revenue growth, we can see that foreign exchange rates have been a headwind for Levi's. 
This quarter, Levi’s $1.77 billion of revenue was flat year on year but beat Wall Street’s estimates by 3.4%.
Looking ahead, sell-side analysts expect revenue to grow 4.3% over the next 12 months. While this projection indicates its newer products and services will catalyze better top-line performance, it is still below average for the sector.
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Operating Margin
Levi’s operating margin has risen over the last 12 months and averaged 7.7% over the last two years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports inadequate profitability for a consumer discretionary business.
In Q4, Levi's generated an operating margin profit margin of 11.9%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Levi’s EPS grew at a remarkable 46.5% compounded annual growth rate over the last five years, higher than its 7.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
In Q4, Levi's reported adjusted EPS of $0.41, down from $0.50 in the same quarter last year. Despite falling year on year, this print beat analysts’ estimates by 4.6%. Over the next 12 months, Wall Street expects Levi’s full-year EPS of $1.35 to grow 9.1%.
Key Takeaways from Levi’s Q4 Results
We were impressed by how significantly Levi's blew past analysts’ constant currency revenue expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its full-year EPS guidance missed. Overall, this print had some key positives. The market seemed to be hoping for more, and the stock traded down 1% to $20.25 immediately after reporting.
So do we think Levi's is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
