Levi’s set to deliver modest earnings beat and steady guidance in Q1 report

Levi Strauss & Co (NYSE:LEVI) is expected to station a humble archetypal 4th 2026 income and net bushed but determination is constricted imaginable for a market-moving reaction, according to UBS analysts.

The steadfast noted that portion caller information bespeak coagulated user trends, ongoing geopolitical tensions successful the Middle East and rising lipid prices whitethorn pb Levi’s to support a cautious stance connected its full-year outlook, apt reaffirming fiscal 2026 EPS guidance of $1.40 to $1.46 per share.

“Recent macro volatility could punctual Levi’s to instrumentality with its anterior EPS guidance, and our consciousness is the marketplace already anticipates a akin outcome,” the UBS analysts wrote, adding that the options marketplace is pricing successful an approximate 8% determination astir the net release, somewhat supra the humanities mean of 6.9%.

UBS highlighted that the cardinal metrics investors volition ticker see a imaginable $0.01 to $0.02 archetypal 4th EPS beat, confirmation of the fiscal 2026 guidance, and 2nd 4th EPS guidance successful the $0.22 to $0.24 range. The analysts besides noted a anticipation that absorption could connection a much constructive outlook connected tariffs.

Industry information and UBS Evidence Lab investigation suggest Levi’s maintained momentum successful cardinal markets. US direct-to-consumer income grew astir 2% year-over-year successful the archetypal quarter, reflecting a ~420-basis-point acceleration from the anterior quarter. Website postulation roseate 8% successful the US and 11% crossed cardinal European sites, portion US Google searches for the marque accrued 13% year-over-year.

UBS besides noted that Levi’s pulled backmost connected promotions during the quarter, supporting pricing stability.

Despite affirmative operational trends, capitalist sentiment has softened. Shares are down astir 13% implicit the past 3 months, compared with a astir 5% diminution successful the S&P 500, and abbreviated involvement has climbed to 12.9%.

UBS described sentiment arsenic somewhat bearish, citing concerns implicit imaginable outgo pressures from higher lipid prices and the ongoing modulation astatine Levi’s US organisation center.

From a valuation perspective, UBS maintains a Buy standing with a $33 terms target, based connected astir 17 times projected fiscal 2028 EPS of $1.95. Shares traded hands astatine $18 connected Friday morning.

The analysts cited beardown marque fundamentals, controlled promotional activity, and peer-aligned valuation metrics arsenic supportive factors for their affirmative outlook.

Levi's volition study its fiscal archetypal 4th net connected April 7.