Business Overview and Segments
This company is the namesake of the 150-year-old brand Levi’s. It’s a relatively simple business, having three segments; bottoms, tops, and footwear plus accessories. As expected, the bottoms segment is very mature and well-established, meaning the revenue is growing slowly at around 1% per year. However, it is the tops segment which is the golden nugget for this company, growing 150% over the past 4 years. The footwear and accessories segment is also growing like a weed, growing 800% over the past 4 years also. These sound like large numbers, but they are from a small base, with them representing 21% and 7% of the overall results, respectively. Not to mention that these segments also bringing higher margins, as seen in Levi’s increasing margins since their inception.
Brand – this brand has lasted 150-years and is seen as iconic to humankind – this is about as strong a brand gets.
Key Facts and Figures
| Risk of Bankruptcy | Low |
| Last Year’s Growth | 3% (Moderate) |
| ROIC (Company Quality) | 29% (High) |
| Free Cash Flow Margin (Company Strength) | 8% (Moderate) |