Levi’s Q4 Report: AI Stylist & Digital Growth Amidst Financial Shifts

Levi's unveils an AI stylist chatbot & reports strong Q4 e-commerce growth (22%), despite a net income drop. Experts are bullish on FY26 guidance due to AI adoption & cost cuts, as DTC revenue grew 8%.

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Levi’s AI Initiatives & Digital Strategy

The chief executive additionally teased that Levi’s will release a consumer-facing AI stylist chatbot enabling consumers to obtain personalized referrals via conversational questions. The news builds on Levi’s statement in November that it would partner with Microsoft to develop AI-backed very agents for the whole business.

“We assume FY26 guidance is possible and may have upside prospective, if the firm can successfully perform on toll reduction techniques and drive effectiveness though expanding A.I. usage,” TD Cowen experts led by Oliver Chen claimed in a Thursday note.

“We stay bullish on LEVI shares complying with a better-than-expected Q4 print and strong FY26 advice,” Needham experts led by Tom Nikic said in an emailed note Thursday. “Our company believe the firm is not just gaining from the current jeans trend, however they are also carrying out well on their critical efforts.”

Financial Performance & Expert Analysis

The brand name’s DTC earnings expanded 8% while wholesale decreased 5%, and net income dropped about 11% to $160 million. The company’s gross margin decreased from 61.8% in 2014 to 60.8% mainly because of tariffs, though this was partly balanced out by cost increases.

“Our efforts to develop a strong digital structure have enabled us to increase our shopping service,” CEO Michelle Gass claimed on a call with analysts Wednesday. “And in Q4, we provided an additional quarter of really solid ecommerce growth, up 22%. We are leveraging AI to make online buying simpler and more inspiring for our followers.”