Levi StraussLEVI +0.86%85 Gross Margin % is 61.88% as of Feb. 2026, which is 11% above its 10-year median of 55.67. GuruFocus rates LEVI with a GF Score™ of 85/100 and a GF Value™ of $20.66 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,028 Manufacturing - Apparel & Accessories companies, Levi Strauss ranks better than 89.88% on this metric.
Levi Strauss had a gross margin of 61.88% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Levi Strauss was 2.60% per year.
Levi Strauss (NYSE:LEVI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Levi Strauss had a gross margin of 61.88% for the quarter that ended in Feb. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Levi Strauss Gross Margin % Related Terms
Levi Strauss Gross Margin % Historical Data
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The historical data trend for Levi Strauss's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Apparel Manufacturing subindustry, Levi Strauss's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Levi Strauss Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Levi Strauss's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Levi Strauss's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Levi Strauss (LEVI) has a Gross Margin % of 61.88% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Levi Strauss and its competitors. This is 11% above median its historical median of 55.67. Over the past decade, Levi Strauss' Gross Margin % has ranged from 51.16 to 61.73. According to the industry distribution chart, Levi Strauss ranks #104 out of 1028 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 10.1%.
Is Levi Strauss' Gross Margin % too high?
Levi Strauss' current Gross Margin % of 61.88% is 11% above median its 10-year median of 55.67. Over the past 10 years, this metric has ranged from a low of 51.16 to a high of 61.73. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.39. Levi Strauss' value of 61.88% is 118% above this industry median. Based on the distribution chart, Levi Strauss ranks #104 out of 1028 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Levi Strauss has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Levi Strauss' Gross Margin % compare to VFC and PVH?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Levi Strauss ranks #104 out of 1028 companies for Gross Margin %. This places Levi Strauss in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 28.39. Levi Strauss' value of 61.88% is 118% above this benchmark. Historically, Levi Strauss' own Gross Margin % has ranged from 51.16 to 61.73 over the past decade. While the company's 10-year median is 55.67 vs. the industry median of 28.39, Levi Strauss has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.39, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Levi Strauss's current Gross Margin % of 61.88% is 118% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Levi Strauss and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Levi Strauss's current Gross Margin % is 61.88%, which is 11% above median its own 10-year median of 55.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Levi Strauss stock overvalued right now?
Based on GuruFocus' analysis, Levi Strauss (LEVI) is currently considered Modestly Overvalued. The stock's GF Value™ is $20.66, compared to a current price of $23.57 — trading 14.1% above its estimated fair value. The current Gross Margin % is 61.88%, which is 11% above median its 10-year median of 55.67 and 118% above the Manufacturing - Apparel & Accessories industry median of 28.39. Levi Strauss' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Levi Strauss (LEVI), the current Gross Margin % is 61.88% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Levi Strauss (LEVI) Overvalued in 2026?
Based on GuruFocus' analysis, Levi Strauss stock appears to be overvalued.
The current stock price of $23.57 is trading 14.1% above its estimated GF Value™ of $20.66.
GuruFocus considers Levi Strauss to be Modestly Overvalued.
Key valuation signals for LEVI:
Gross Margin %: 61.88% (11% above median its 10-year median of 55.67)
GF Value™: $20.66 vs. price of $23.57 (14.1% above fair value)
Industry Position: 118% above the Manufacturing - Apparel & Accessories median (#104 of 1028)
No single metric tells the full story. See the LEVI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Levi Strauss & Co is involved in designing, marketing, and selling products that include jeans, casual and dresses pants, tops, shorts, skirts, jackets, footwear, and related accessories directly or through third parties and licensees for men, women, and children under Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. The company manages its business according to three regional segments: the Americas, which is the key revenue driver; Europe; and Asia.
85GF Score
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