LEVI'S (LEVI) MARGIN STORY UNRAVELING — SELL Levi Strauss reported Q4 revenue of $6.7B, up 12.3% YoY, but net income fell 19.4% to $586M. 's margin profile is deteriorating, with gross margin down 280bps to 56.8% and operating margin contracting 310bps to 12.2%. This signals the company is struggling to pass along higher input costs to consumers, eroding its once-reliable profitability. With trading at 16.4x forward P/E, the valuation looks stretched given the weakening fundamentals. I'm downgrading to a SELL with 5/10 conviction. The margin headwinds are likely to persist, and I don't see a clear catalyst for the stock to re-rate higher from here. Target $35 (-15% from current $41.25) over the next 90 days as investors reassess the earnings power of the business.

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