Levi vs. Abercrombie: Which Denim Icon Leads in a Shifting Apparel Arena?

The global apparel industry is fiercely competitive and constantly evolving with trends, technology and shifting consumer demographics. Within this high-stakes sector, Levi Strauss & Co. LEVI and Abercrombie & Fitch Co. ANF stand out as two iconic players leveraging rich brand heritage and strategic transformation to capture market share. 

While Levi's roots trace back more than 170 years with deep associations to denim culture, Abercrombie has reinvented itself multiple times to stay relevant among young, style-conscious consumers. Both brands are navigating macroeconomic headwinds, digital disruption and evolving customer preferences with bold strategies, making them compelling rivals for investors to watch.

Levi operates primarily in the casualwear and denim category, selling through both Direct-to-Consumer (DTC) and wholesale channels. The company is best known for its flagship Levi’s brand, but also owns Beyond Yoga, allowing it to tap into the activewear and athleisure trend. Abercrombie, meanwhile, serves the specialty retail segment through its namesake brand and the youth-focused Hollister. Its core business spans casualwear, outerwear, activewear and accessories, appealing to a trend-driven Gen Z and millennial customer base. Both companies are responding to industry-wide demand for more sustainable fashion, digital shopping experiences and broader product assortments.

This head-to-head comparison between LEVI and ANF offers investors a close look at how legacy versus agility plays out in modern fashion. Levi brings scale, premium branding and a global presence, while Abercrombie is leaning into localization, brand segmentation and trend responsiveness. From digital innovation and DTC strategies to portfolio expansion and supply-chain flexibility, this face-off reveals which of the two legacy names is better equipped to win in the next chapter of global apparel.

Let us dive into the two companies’ key statistics, market share, valuation, dividend strategies and stock performances to determine which is better positioned for growth in 2025.

The Case for LEVI

Levi stands as a paragon of resilience and reinvention in the global apparel industry. With a legacy rooted in denim, the company has transcended its origins to emerge as a leading lifestyle brand, commanding dominance in the denim segment across genders and regions. In first-quarter 2025, Levi reinforced its market leadership by gaining share in both men’s and women’s categories while continuing to deepen its relevance among young consumers. The company’s strategy to expand beyond jeans into tops, outerwear, dresses and skirts has begun reshaping its product portfolio, strengthening its positioning in the broader lifestyle space. The Levi’s brand has maintained its cultural cachet, using influential partnerships and media moments to anchor itself in the center of global pop culture, which enhances brand equity and customer stickiness.

Levi’s evolution into a DTC-first organization is transforming how it connects with consumers and drives value. The DTC channel has become its primary growth engine, supported by vibrant store expansions and a reinvigorated e-commerce platform. The digital experience has been upgraded with high-quality visuals, video-enabled product pages and a curated assortment that mirrors its premium positioning. These investments are enhancing customer engagement, satisfaction and conversion. LEVI’s ability to command higher average unit retails, reduce promotions and deliver strong full-price sell-through highlights the strength of its pricing power and premium brand perception. Moreover, Levi's continued digital penetration and omnichannel capability are solidifying its foundation for scalable, margin-accretive growth in the years ahead.

Levi is not merely leaning on legacy; it is laying down infrastructure for the future. Its head-to-toe product strategy is unlocking new addressable markets, particularly with women and younger consumers, who now make up a growing share of its base. Simultaneously, the company’s international momentum and agile global supply chain enable it to adapt quickly to macro shifts while still scaling in underpenetrated markets. 

Levi’s transformation into a digitally enabled lifestyle brand with a robust portfolio, a clear demographic focus and modernized retail touchpoints makes it an increasingly compelling case for long-term investors seeking quality, global scale and strategic clarity. With strong operational execution and rising brand heat, Levi is positioning itself not just as a fashion staple but as a growth platform within the global apparel landscape.

The Case for ANF

Abercrombie has evolved from a once-trendy teen label into a multi-brand powerhouse executing a nimble, digitally driven playbook. Its two core banners, Abercrombie and Hollister, serve distinct customer segments, with Abercrombie focusing on the style-savvy millennial and young adult, and Hollister speaking directly to the Gen Z teen audience. The brand portfolio is reinforced by emerging verticals, like YPB activewear, enabling ANF to expand into new lifestyle categories while capturing greater wallet share.

Abercrombie’s emphasis on culture-relevant merchandising, localized product assortments and cross-channel accessibility has helped maintain a strong consumer connection and keep the brand fresh amid fashion’s ever-shifting landscape.

Abercrombie’s key strength is its agility. Through its “Read & React” model, the company quickly tests trends, limits exposure to slow sellers and scales winners. This responsive approach spans merchandising, supply chain and inventory. Abercrombie is also investing in immersive store experiences and seamless digital integration, blending physical and online retail. With targeted, value-driven marketing and strong digital sales growth, the brand continues to expand its lifestyle appeal through curated design and consumer-first strategies.

However, the path forward is not without challenges. The Abercrombie adult brand faced a soft patch recently as it lapped exceptional growth from the prior year, revealing some vulnerability in assortment planning and seasonal transitions. While Hollister delivered standout growth, the lag in Abercrombie’s spring categories and carryover inventory impacted pricing and sell-through rates. 

Additionally, reliance on promotional clearance to move aged stock temporarily compressed margins and diluted AURs. Though the company remains well-positioned to rebound, given its adaptive model and merchandising agility, the near-term performance gap between its banners underscores the importance of consistent trend forecasting and inventory discipline. As ANF continues to balance offense and discipline, investor attention will likely focus on its ability to realign underperforming segments while preserving overall momentum.

How Do Zacks Consensus Estimates Compare for LEVI & ANF?

The Zacks Consensus Estimate for Levi's fiscal 2025 sales implies a decline of 4.04%, whereas EPS  indicates year-over-year growth of 2.4%. The EPS estimates have increased 4.1% to $1.28 in the past seven days.

The Zacks Consensus Estimate for Abercrombie’s fiscal 2025 EPS implies a year-over-year decline of 4.9%, whereas the sales estimate indicates year-over-year growth of 4.7%. The EPS estimates have moved down a penny to $10.17 in the past 30 days.

Price Performance & Valuation of LEVI & ANF

Levi currently trades at a forward 12-month P/E ratio of 15.65X, below the Zacks Retail – Apparel and Shoes industry average of 18.14X. This valuation reflects investor recognition of Levi’s enduring brand equity, strategic pivot to DTC and sustained margin expansion. In contrast, Abercrombie’s forward P/E of 8.90x may appear attractively discounted, but it also signals heightened investor caution stemming from uneven brand performance and less earnings visibility across its portfolio.

While both companies offer distinct investment profiles, Levi’s relatively higher valuation underscores stronger long-term market confidence in its transformation into a premium, globally scaled lifestyle brand. Its diversified product mix, growing traction with younger consumers and international expansion reinforce its forward-looking growth story. 

This bullish sentiment is mirrored in stock performance. Levi shares have surged 21.7% in the past six months, outperforming Abercrombie’s 28.1% decline and the industry’s broader 11% drop. This divergence reflects investor conviction in Levi’s turnaround story, fueled by market share gains, innovation in product and digital, and a disciplined focus on margin expansion. In contrast, despite Abercrombie’s operational discipline, its weaker comps and softer store traffic have caused a more guarded stance from investors.

The Verdict

In weighing the two contenders, Levi emerges as the stronger long-term investment, backed by its global scale, iconic brand strength and clear strategic transformation into a diversified lifestyle powerhouse. While Abercrombie has shown commendable agility and Hollister continues to deliver, its inconsistent performance across banners and heightened investor caution suggest a rockier path ahead. Levi, on the other hand, is demonstrating consistent execution, expanding market share, premiumizing its brand and enhancing profitability through its DTC-first model and digital innovation. With robust international momentum and a product strategy that resonates with both heritage and next-gen consumers, Levi is better positioned to navigate uncertainty and deliver sustained value to shareholders.

Levi currently sports a Zacks Rank #1 (Strong Buy), whereas ANF has a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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