Shares of Levi Strauss (LEVI -11.74%) faded on Friday, like a pair of bleached jeans. The apparel maker reported third-quarter results on Thursday evening, beating Wall Street’s estimates on both the top and bottom lines.

The stock still fell as much as 14% in the morning session due to modest management commentary and lofty expectations.

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Q3 2025 results and Q4 guidance

Q3 revenues rose 6.9% year over year to $1.54 billion. Levi Strauss saw double-digit growth in Asia and a weaker currency-adjusted increase of 3% in Europe. The analyst consensus had called for $1.50 billion.

On the bottom line, adjusted earnings rose from $0.33 to $0.34 per diluted share. Here, your average analyst would have settled for $0.30 per share.

Management also raised its full-year guidance targets across the board, but wrapped the increases in cautious caveats. Levi Strauss should achieve roughly Street-level guidance targets, but only if tariffs hold steady and consumers don’t face macroeconomic pressure in the upcoming holiday season.

On the earnings call, CFO Harmit Singh noted that organic revenue growth held flat in 2023, saw a 3% gain in 2024, and should rise to approximately 6% in the updated 2025 projections. That’s an impressive top-line acceleration.

Is Levi Strauss a good buy after the price drop?

This share-price cut took the edge off Levi Strauss’s recent gains. The stock has still risen 49% in six months, reflecting strong organic sales even in this unpredictable economy.

Trading at 18.7 times trailing earnings today, Levi Strauss shares are neither terribly expensive nor extremely cheap. If you thought the stock was overvalued yesterday, this could be a good time to pick up lower-priced shares, locking in the effective dividend yield at a generous 2.6%.