Levi Strauss & Co. (LEVI 0.24%) is an iconic brand that is stitching together a successful company turnaround. Since joining the famed blue jean seller in 2023, CEO Michelle Gass has focused on pivoting the company to improve its performance through an initiative called "Project Fuel." The project is still underway, and the business fundamentals are showing serious promise.
NYSE: LEVI
Key Data Points
There are a few main pillars within Project Fuel. The first is a strategic move away from wholesale toward direct-to-consumer sales, boosting profit margins with tighter customer relationships. The others include reducing costs, deprioritizing lower-margin products, and increasing productivity and efficiency across the company's operations.
This effort, which began in 2024, is paying off. In the first quarter of 2026, Levi's reported a 14% increase in net revenues. The denim company also raised its full-year 2026 guidance for net revenue, margins, and earnings per share.
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Levi's stock has risen 56% over the past 12 months, driven by bullish trends behind the brand's turnaround. In addition to solid growth prospects, the blue jeans maker and retailer also offers investors an annual dividend of $0.56 per share, which increased 5% from the previous year.
Although Levi's is trading near its 52-week high, it's still fairly priced at 20 times earnings, given its solid growth trajectory. This clothing veteran is poised to thrive in 2026 and beyond, despite tariffs and low consumer confidence.
Levi Strauss is an iconic American brand that's been in business for more than 170 years -- nearly two centuries. Now with a leaner business model and sales momentum, the stock is worth buying and holding for the long term.
