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Nov 16, 2018
Levi Strauss & Co. Plans to Go Public Again

Levi Strauss & Co. Plans to Go Public Again

The San Francisco-based, iconic American clothing company, Levi Strauss & Co. – known for creating the first pair of blue jeans -- is planning to go public again (according to the report published by CNBC).

Looking to raise somewhere between $600 million to $800 million, the company is targeting the first quarter of 2019 to go public.

With an aim to debut with a valuation upward of $5 billion, the company hired Goldman Sachs (GS) and J.P. Morgan (JPM) to manage the deal. However, the timing and size of the offering hasn’t been disclosed yet and might change also.

Levi's has been in this position before, back in 1971 when it became one of the largest IPO’s ever by generating proceeds worth around $50 million. But as profits and revenue started declining, the company ran into trouble and finally the descendants of Levi Strauss took the company private in a $1.7 billion leveraged buyout deal in 1984.

Currently headed by Mr. Chip Bergh, a former Proctor &Gamble executive, the company’s recent string of strong commendable performance along with a strong balance sheet is considered to be the main reason for going public again. For the August ending quarter, the company reported a total revenue of $1.4 billion - a 10% increase from the same quarter in 2017.  Net income for the quarter stood at $130 million, representing a growth of 45%. According to the fillings, the company has also reduced its debt to almost half of what it was two years ago.

Related Ticker: GAP

GAP in upward trend: 10-day moving average moved above 50-day moving average on August 07, 2026

The 10-day moving average for GAP crossed bullishly above the 50-day moving average on August 07, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 87%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The Momentum Indicator moved above the 0 level on September 11, 2026. You may want to consider a long position or call options on GAP as a result. In 62 of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 77%.

GAP moved above its 50-day moving average on August 24, 2026 date and that indicates a change from a downward trend to an upward trend.

Following a +1.68% 3-day Advance, the price is estimated to grow further. Considering data from situations where GAP advanced for three days, in 226 of 293 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.

The Aroon Indicator entered an Uptrend today. In 151 of 200 cases where GAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 75%.

Bearish Trend Analysis

The 10-day RSI Indicator for GAP moved out of overbought territory on August 31, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In 26 of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at 90%.

The Moving Average Convergence Divergence Histogram (MACD) for GAP turned negative on September 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 36 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where GAP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.

GAP broke above its upper Bollinger Band on August 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron Seasonality Score of 11 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Valuation Rating of 17 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.912) is normal, around the industry mean (3.090). P/E Ratio (6.479) is within average values for comparable stocks, (20.016). Projected Growth (PEG Ratio) (1.169) is also within normal values, averaging (1.681). Dividend Yield (0.032) settles around the average of (0.035) among similar stocks. P/S Ratio (0.532) is also within normal values, averaging (0.679).

The Tickeron SMR rating for this company is 31 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is 54 (best 1 - 100 worst), indicating steady price growth. GAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is 84 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.

Notable companies

The most notable companies in this group are TJX Companies (NYSE:TJX), lululemon athletica (NASDAQ:LULU), Gap Inc (The) (NYSE:GAP), Abercrombie & Fitch Co (NYSE:ANF), Stitch Fix (NASDAQ:SFIX).

Industry description

Companies in the apparel and/or footwear retail industry sell clothing, accessories and footwear, for different age groups and genders. The industry’s product categories could range from basics, such as underwear, to luxury items. Some retailers source items from wholesalers or an apparel brand to sell in their stores; some others are licensed to make and market their own retail goods under particular brands. Several companies outsource production of clothing to developing/emerging economies where labor costs are relatively inexpensive. Apparel retail is often influenced by fashion trends, and many companies feel the need to adapt to what’s “in vogue” to retain customers and attract new ones. A major disruption in this industry has been the burgeoning trend in digital shopping – to compete with rapidly growing e-commerce, even traditional retail players are upping the ante on their online platforms. Much of the products’ performance in apparel/footwear retail is cyclical, i.e., economic boom times encourage consumer spending, while recessions induce thriftiness among people. Some large-cap U.S. apparel/footwear retail companies include TJX Companies Inc., Ross Stores, Inc., Lululemon Athletica Inc. and Burlington Stores, Inc.

Market Cap

The average market capitalization across the Apparel/Footwear Retail Industry is 8.47B. The market cap for tickers in the group ranges from 256K to 179.95B. IDEXY holds the highest valuation in this group at 179.95B. The lowest valued company is DESTQ at 256K.

High and low price notable news

The average weekly price growth across all stocks in the Apparel/Footwear Retail Industry was -3%. For the same Industry, the average monthly price growth was -12%, and the average quarterly price growth was 3%. DBGI experienced the highest price growth at 59%, while RENT experienced the biggest fall at -36%.

Volume

The average weekly volume growth across all stocks in the Apparel/Footwear Retail Industry was -32%. For the same stocks of the Industry, the average monthly volume growth was 37% and the average quarterly volume growth was 4%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 45
P/E Growth Rating: 58
Price Growth Rating: 63
SMR Rating: 65
Profit Risk Rating: 88
Seasonality Score: -28 (-100 ... +100)
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published General Information

General Information

an operator of stores that retail clothing, accessories and personal care products

Industry ApparelFootwearRetail

Profile
Details
Industry
Apparel Or Footwear Retail
Address
Two Folsom Street
Phone
+1 415 427-0100
Employees
79000
Web
https://www.gapinc.com
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