Levi Strauss & Co. shares were under pressure on Wednesday as investors awaited the apparel maker’s third-quarter (Q3) 2026 earnings report, scheduled to be released after the US market closes.
Analysts expect the denim maker to report adjusted earnings of $0.36 per share and revenue of $1.61 billion for the quarter, representing a 4.5% increase from the year-ago period.
Strong demand for denim and growth across Europe, Asia and China are expected to support the company’s quarterly performance. Analysts are also watching for a potential upward revision to Levi Strauss‘ full-year profit outlook.
Levi Strauss shares fall
Levi Strauss shares were trading 3.17%, or $0.65, lower at $19.88 at 10:21 a.m. EDT on Wednesday.
The stock is trading closer to its 52-week low of $17.92 than its 52-week high of $25.53. Shares are down 4.13% so far this year.
Despite the recent decline, the stock continues to attract attention, with its forward price-to-earnings ratio at around 12.6.
Analysts maintain bullish view on Levi Strauss
Analysts have taken different approaches to their price targets ahead of the earnings announcement.
Jefferies last week cut its price target on Levi Strauss to $25 from $27 but maintained its ‘Buy’ rating.
UBS, meanwhile, reiterated its ‘Buy’ rating and retained a $34 price target. The brokerage expects Levi Strauss to report adjusted earnings of $0.36 per share for the third quarter, in line with consensus estimates.
UBS also expects stronger revenue performance to support an improvement in the company’s fiscal 2026 earnings-per-share guidance.
The brokerage sees the fourth quarter as an important catalyst for operating margin and expects the company to maintain a sustainable mid-single-digit or higher revenue growth trajectory into 2027.
The appointment of a new chief financial officer is also expected to support Levi Strauss’ focus on global growth.
Levi Strauss beat estimates in Q2
Levi Strauss had exceeded Wall Street expectations on both revenue and earnings in the second quarter.
The company reported adjusted earnings of 28 cents per share and revenue of $1.56 billion. Reported net income stood at $87.3 million, or 22 cents per share.
Investors will now be watching whether the company can maintain its growth momentum in the third quarter and provide an improved outlook for the remainder of fiscal 2026.
Cybersecurity incident remains a concern
Levi Strauss also disclosed a cybersecurity incident in August involving unauthorized access to company files through social engineering techniques.
The company said no consumer data was affected and that it had engaged third-party cybersecurity experts to investigate the incident.
The focus will now shift to the company’s earnings report and management commentary on demand, margins, global growth and its outlook for the remainder of the year.
