Earnings Preview: Levi Strauss (LEVI) Q2 Earnings Expected to Decline

Levi Strauss (LEVI) is projected to report a year-over-year earnings decline of 18.8% to $0.13 per share on a 5.2% revenue decrease to $1.37 billion for the quarter ending May 2025. The consensus EPS estimate has remained unchanged over the last 30 days, but the company's Earnings ESP is negative, suggesting analysts have become more bearish, making an earnings beat less certain despite a Zacks Rank of #3. While LEVI has historically beaten EPS estimates, investors should consider other factors beyond the headline numbers when evaluating the stock ahead of the earnings release.

Analysis

Levi Strauss (LEVI) is anticipated to report a significant year-over-year decline in financial performance for its second quarter ending May 2025. Consensus estimates project quarterly earnings of $0.13 per share, representing an 18.8% decrease from the prior year, alongside a 5.2% fall in revenues to $1.37 billion. Although the consensus EPS estimate has remained unchanged over the past 30 days, a more bearish sentiment among analysts is indicated by the Zacks Earnings ESP of -2.99%, which reflects that the Most Accurate Estimate is lower than the consensus. This negative ESP, coupled with the stock's current Zacks Rank of #3 (Hold), makes it difficult to conclusively predict an earnings beat. This cautious outlook prevails despite Levi Strauss's consistent history of surpassing EPS estimates in all four of the last reported quarters, including a substantial +35.71% positive surprise in the immediately preceding quarter (actual $0.38 vs. expected $0.28). The moderately negative sentiment and the expectation of declining fundamentals underscore potential headwinds from consumer demand or company-specific operational factors.

Key Decisions for Investors

• Investors should prepare for Levi Strauss's Q2 results to reflect the widely-known consensus for an 18.8% year-over-year earnings decline to $0.13 per share and a 5.2% revenue decrease to $1.37 billion.
• Given the conflicting signals of a strong earnings surprise history against a current negative Earnings ESP of -2.99% and a Zacks Rank #3, it is prudent to carefully scrutinize management's discussion on business conditions and future earnings outlook during the earnings call to assess the sustainability of any share price reaction.
• Consider the current moderately negative sentiment and the difficulty in predicting an earnings beat; investors should weigh whether to adjust positions ahead of the report or wait for actual results and subsequent analyst revisions before making significant investment decisions.