Levi Strauss (NYSE: LEVI) is on track to hit new highs in 2026, as the enduring, globally recognized brand is in the midst of a sales recovery. Management is effecting a strategic transformation that centers on direct-to-consumer, omnichannel, and e-commerce, driving industry-leading sales growth for core brands and widening margins despite macroeconomic headwinds. Among the critical takeaways is that Levi Strauss produces healthy cash flow, maintains a fortress-like balance sheet, and returns capital to shareholders, too, making it an attractive play for income-oriented investors.
Levi Strauss’s capital return is attractive and was amplified in 2025. The company entered into an accelerated share repurchase program during Q3 due to strong performance and the impact of a divestiture. The ASR is worth approximately 1.2% of the company's market cap with shares near $24.50, and is expected to be completed before the fiscal year’s end. Once completed, the company will have $440 million left under its standard authorization, allowing it to continue reducing its share count in future quarters.
