[Q2 2025 Financial Performance Overview](index=1&type=section&id=Levi%20Strauss%20%26%20Co.%20Reports%20Second-Quarter%202025%20Financial%20Results) [Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) Levi Strauss & Co. reported a **strong second quarter** for 2025, with **significant growth in revenue and profitability**, driven by the success of its strategic initiatives, particularly its DTC-first model. The company demonstrated broad-based strength, leading to an **increase in its full-year financial outlook** despite anticipated tariff impacts Q2 2025 Key Performance Indicators | Metric | Q2 2025 Performance | YoY Change | | :--- | :--- | :--- | | Reported Net Revenues | **$1.4 billion** | **+6%** | | Organic Net Revenues | - | **+9%** | | Gross Margin | **62.6%** (**Record**) | **+140 bps** | | Adjusted EBIT Margin | **8.3%** | **+190 bps** | | Adjusted Diluted EPS | **$0.22** | **+37%** | - CEO Michelle Gass stated that the **strong quarter** is **clear evidence of the company's strategic agenda gaining traction**, as it **transforms into a denim lifestyle brand and a best-in-class DTC retailer**[2](index=2&type=chunk) - CFO Harmit Singh announced an **increase in the full-year revenue and EPS forecast**, attributing the company's **inflection** to a **focus on the core Levi's® brand and its DTC-first strategy**, which is creating a **higher growth and margin profile**[2](index=2&type=chunk) [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) The company's revenue growth was propelled by strong performance in the Americas and Europe. The Direct-to-Consumer (DTC) channel was a **key driver**, growing **11%** and now comprising **50%** of total net revenues. Gross and operating margins **expanded significantly**, benefiting from **lower product costs and favorable channel mix** Regional and Channel Growth | Region/Channel | Reported Growth | Organic Growth | | :--- | :--- | :--- | | **By Region** | | | | Americas | **+5%** | **+9%** | | Europe | **+14%** | **+15%** | | Asia | **-1%** | **0%** | | **By Channel** | | | | DTC | **+11%** | **+10%** | | Wholesale | **+3%** | **+7%** | - The Direct-to-Consumer (DTC) channel now represents **50%** of the company's total net revenues for the second quarter[3](index=3&type=chunk) - Gross margin increased by **140 basis points** to a **record 62.6%**, primarily driven by **lower product costs and a favorable channel mix**[6](index=6&type=chunk) Operating and Net Income Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating Margin | **7.5%** | **1.5%** | | Adjusted EBIT Margin | **8.3%** | **6.3%** | | Net Income (Continuing Ops) | **$80 million** | **$17 million** | | Adjusted Net Income | **$89 million** | **$65 million** | | Diluted EPS (Continuing Ops) | **$0.20** | **$0.04** | | Adjusted Diluted EPS | **$0.22** | **$0.16** | [Balance Sheet and Shareholder Returns](index=3&type=section&id=Balance%20Sheet%20and%20Shareholder%20Returns) As of June 1, 2025, the company maintained a **strong liquidity position** with approximately **$1.5 billion**. It continued to return capital to shareholders, increasing its Q2 dividend payout by **8%** year-over-year and announcing a further dividend increase for Q3 2025 - The company held **$654 million** in cash and cash equivalents and maintained total liquidity of approximately **$1.5 billion**[13](index=13&type=chunk) - Total inventories saw a **15%** increase on a dollar basis compared to the previous period[13](index=13&type=chunk) - In Q2, the company returned approximately **$51 million** to shareholders via a dividend of **$0.13** per share. For Q3, the dividend has been increased to **$0.14** per share[8](index=8&type=chunk)[9](index=9&type=chunk) - The company has **$560 million** remaining under its current share repurchase authorization, with no expiration date[9](index=9&type=chunk) [Fiscal 2025 Outlook (Updated)](index=3&type=section&id=Updated%20Fiscal%202025%20Guidance) Reflecting **strong first-half performance**, Levi Strauss & Co. has **raised its full-year 2025 guidance**. The company now expects **higher net revenue growth** and has **increased its adjusted diluted EPS range**, even after factoring in a **20 basis point** impact from tariffs Fiscal 2025 Guidance Comparison | Metric | Updated FY2025 Guidance | Previous FY2025 Guidance | | :--- | :--- | :--- | | Reported Net Revenue Growth | **1%** to **2%** | (**1%**) to (**2%**) | | Organic Net Revenue Growth | **4.5%** to **5.5%** | **3.5%** to **4.5%** | | Adjusted EBIT Margin | **11.4%** to **11.6%** | Maintained | | Adjusted Diluted EPS | **$1.25** to **$1.30** | **$1.20** to **$1.25** | - The updated guidance assumes U.S. tariffs on imports from China will remain at **30%** and from the rest of the world at **10%** for the remainder of the year[10](index=10&type=chunk) [Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=9&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 1, 2025, total assets stood at **$6.53 billion**, a slight increase from **$6.38 billion** at the end of fiscal 2024. This was primarily due to a rise in inventories to **$1.25 billion**. Total liabilities remained stable at **$4.44 billion**, resulting in an increase in total stockholders' equity to **$2.09 billion** Consolidated Balance Sheet Highlights | Balance Sheet Item ($ millions) | June 1, 2025 | Dec 1, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | **653.6** | **690.0** | | Inventories | **1,248.9** | **1,131.3** | | **Total Assets** | **6,533.2** | **6,375.5** | | Total current liabilities | **1,979.8** | **2,010.5** | | Long-term debt | **1,033.7** | **994.0** | | **Total Liabilities** | **4,443.2** | **4,405.0** | | **Total Stockholders' Equity** | **2,090.0** | **1,970.5** | [Consolidated Statements of Income](index=11&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For the second quarter of 2025, the company reported a **significant improvement in profitability**. Net revenues grew to **$1.45 billion**, driving gross profit to **$905.8 million**. Operating income surged to **$108.0 million**, and net income from continuing operations increased more than fourfold to **$79.6 million**, or **$0.20** per diluted share Consolidated Statements of Income Highlights | Income Statement Item ($ millions) | Three Months Ended June 1, 2025 | Three Months Ended May 26, 2024 | | :--- | :--- | :--- | | Net revenues | **1,446.0** | **1,358.8** | | Gross profit | **905.8** | **832.4** | | Operating income | **108.0** | **20.9** | | Net income from continuing operations | **79.6** | **17.2** | | Diluted EPS from continuing operations | **$0.20** | **$0.04** | [Consolidated Statements of Cash Flows](index=12&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the first six months of fiscal 2025, net cash from operating activities was **$238.0 million**, a decrease from **$548.8 million** in the prior-year period. The company utilized **$129.7 million** for investing activities, mainly for capital expenditures, and **$152.4 million** for financing activities, including dividends and stock repurchases Consolidated Statements of Cash Flows Highlights | Cash Flow Item ($ millions) | Six Months Ended June 1, 2025 | Six Months Ended May 26, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | **238.0** | **548.8** | | Net cash used for investing activities | (**129.7**) | (**141.4**) | | Net cash used for financing activities | (**152.4**) | (**162.9**) | | Net (decrease) increase in cash | (**36.4**) | **242.6** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=13&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) [Overview of Non-GAAP Measures](index=13&type=section&id=Overview%20of%20Non-GAAP%20Measures) The company employs non-GAAP financial measures like Adjusted EBIT, Adjusted Net Income, and Organic Net Revenues to offer investors a clearer perspective on its **core operational performance**. These metrics, which exclude items such as restructuring charges, currency impacts, and divestiture effects, are **integral to management's financial and operational decision-making** - The company uses non-GAAP measures to supplement GAAP results, providing additional information on financial performance, enhancing understanding of past performance and future prospects, and **increased transparency**[17](index=17&type=chunk)[18](index=18&type=chunk) - Key non-GAAP measures include Adjusted SG&A, Adjusted EBIT, Adjusted Net Income, Adjusted Diluted EPS, Organic Net Revenues, and Adjusted Free Cash Flow[38](index=38&type=chunk) [Reconciliation of Adjusted EBIT and Net Income](index=15&type=section&id=Reconciliation%20of%20Adjusted%20EBIT%20and%20Net%20Income) For Q2 2025, Adjusted EBIT rose **39%** to **$119.3 million** from **$86.0 million** YoY, while Adjusted Net Income increased **35%** to **$88.5 million**. The primary adjustments from GAAP figures involved excluding restructuring charges (**$6.8 million**) and related costs (**$4.5 million**) associated with the 'Project Fuel' initiative, providing a clearer view of ongoing operational profitability Adjusted EBIT and Net Income Reconciliation | Q2 2025 Reconciliation ($ millions) | GAAP Measure | Adjustments | Non-GAAP Measure | | :--- | :--- | :--- | :--- | | Operating Income / Adjusted EBIT | **108.0** | **+11.3** | **119.3** | | Net Income (Cont. Ops) / Adjusted Net Income | **79.6** | **+8.9** | **88.5** | - Key adjustments for Q2 2025 include **$6.8 million** in restructuring charges and **$4.5 million** in restructuring-related charges, primarily related to the 'Project Fuel' initiative[46](index=46&type=chunk)[51](index=51&type=chunk)[58](index=58&type=chunk) [Reconciliation of Organic Net Revenues](index=20&type=section&id=Reconciliation%20of%20Organic%20Net%20Revenues) In Q2 2025, total organic net revenue growth was **8.8%**, outpacing the reported **6.4%** growth. This performance was driven by strong organic growth in Europe (**+14.6%**) and the Americas (**+8.9%**), as well as the DTC channel (**+10.3%**). The core Levi's® brand achieved **9.1%** organic growth. The adjustments account for currency fluctuations and prior-year divestitures Q2 2025 Growth | Q2 2025 Growth | Reported | Organic | | :--- | :--- | :--- | | **Total Net Revenues** | **6.4%** | **8.8%** | | Americas | **5.1%** | **8.9%** | | Europe | **14.0%** | **14.6%** | | Asia | (**0.9%**) | **0.2%** | | Wholesale Channel | **2.7%** | **7.3%** | | DTC Channel | **10.5%** | **10.3%** | | Levi's® Brand | **7.4%** | **9.1%** | - The variance between reported and organic revenue growth is attributed to the impact of foreign currency exchange rates and the divestitures of the Denizen® and Footwear businesses in the prior year[83](index=83&type=chunk) [Other Non-GAAP Reconciliations](index=18&type=section&id=Other%20Non-GAAP%20Reconciliations) The company's trailing four-quarter Return on Invested Capital (ROIC) improved significantly to **17.7%** from **14.0%** year-over-year, indicating **more efficient capital deployment**. Adjusted Free Cash Flow for the first six months was **$131.9 million**. On a constant-currency basis, Q2 Adjusted EBIT grew **41.9%**, demonstrating **strong underlying business momentum** - Adjusted Free Cash Flow for the six months ended June 1, 2025, was **$131.9 million**, compared to **$437.0 million** in the same period last year[76](index=76&type=chunk) - Return on Invested Capital (ROIC) for the trailing four quarters increased to **17.7%** as of June 1, 2025, up from **14.0%** a year prior[81](index=81&type=chunk) Constant-Currency Growth Rates | Q2 2025 Constant-Currency Growth | YoY Growth | | :--- | :--- | | Adjusted EBIT | **41.9%** | | Adjusted Net Income | **35.3%** | | Adjusted Diluted EPS | **37.5%** |

Part I [Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The company's financial statements for the period ending June 1, 2025, reflect revenue growth and a significant increase in net income compared to the prior year, largely driven by improved gross margins and lower restructuring charges, with total assets increasing to **$6.53 billion** and the Dockers® business classified as discontinued operations [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 1, 2025, total assets were **$6.53 billion**, an increase from **$6.38 billion** at the end of fiscal 2024, driven by higher inventories and other non-current assets; total liabilities remained relatively stable at **$4.44 billion**, while total stockholders' equity increased to **$2.09 billion** from **$1.97 billion** Key Balance Sheet Items (in millions) | Balance Sheet Item | June 1, 2025 | December 1, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $653.6 | $690.0 | | Inventories | $1,248.9 | $1,131.3 | | Total current assets | $2,929.1 | $2,851.1 | | Total assets | $6,533.2 | $6,375.5 | | Long-term debt | $1,033.7 | $994.0 | | Total liabilities | $4,443.2 | $4,405.0 | | Total stockholders' equity | $2,090.0 | $1,970.5 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2025, net revenues increased to **$1.45 billion** from **$1.36 billion** year-over-year, with net income from continuing operations rising substantially to **$79.6 million** from **$17.2 million**, driven by higher gross profit and lower restructuring charges Income Statement Highlights (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $1,446.0 | $1,358.8 | $2,972.8 | $2,839.0 | | Gross profit | $905.8 | $832.4 | $1,853.4 | $1,702.2 | | Operating income | $108.0 | $20.9 | $299.6 | $21.5 | | Net income from continuing operations | $79.6 | $17.2 | $219.8 | $7.3 | | Net income | $67.0 | $18.0 | $202.0 | $7.3 | | Diluted EPS (Continuing Operations) | $0.20 | $0.04 | $0.55 | $0.02 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash provided by operating activities decreased to **$238.0 million** from **$548.8 million** in the prior year, while net cash used for investing activities was **$129.7 million** and for financing activities was **$152.4 million** Cash Flow Summary - Six Months Ended (in millions) | Cash Flow Activity | June 1, 2025 | May 26, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $238.0 | $548.8 | | Net cash used for investing activities | ($129.7) | ($141.4) | | Net cash used for financing activities | ($152.4) | ($162.9) | | Net (decrease) in cash | ($36.4) | $242.6 | | Ending cash and cash equivalents | $653.6 | $641.4 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail the definitive agreement to sell the Dockers® business, now a discontinued operation, the ongoing "Project Fuel" restructuring initiative, and disaggregated revenue data showing growth in the DTC channel - The company entered into a definitive agreement to sell its Dockers® business, which is now classified as discontinued operations; the transaction is expected to close in two phases, on July 31, 2025, and January 31, 2026[27](index=27&type=chunk)[47](index=47&type=chunk) - The Denizen® brand was discontinued, with the wind-down substantially complete as of March 2, 2025[27](index=27&type=chunk) - The "Project Fuel" restructuring initiative incurred charges of **$6.8 million** and **$13.5 million** for the three and six months ended June 1, 2025, respectively[72](index=72&type=chunk) - Dividends of **$0.13 per share** were declared in both January and April 2025, with a subsequent dividend of **$0.14 per share** declared for Q3 2025[85](index=85&type=chunk)[87](index=87&type=chunk) [Management's Discussion and Analysis (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a **6.4%** increase in Q2 2025 net revenues, driven by growth in Americas and Europe, improved gross margin to **62.6%**, and the sale of the Dockers® brand, maintaining strong liquidity of approximately **$1.5 billion** [Overview and Key Factors](index=27&type=section&id=Overview%20and%20Key%20Factors) Levi Strauss & Co., primarily driven by the Levi's® brand, is diversified across wholesale and DTC channels, with key factors including the pending Dockers® sale, the "Project Fuel" initiative, and macroeconomic pressures - The company has entered into a definitive agreement to sell its Dockers® business, which is now reported as discontinued operations[119](index=119&type=chunk) - The "Project Fuel" initiative, a multi-year global productivity plan, is underway to optimize operations and reduce costs, resulting in restructuring charges of **$6.8 million** in Q2 2025[120](index=120&type=chunk) - Key business risks include potential tariffs on products from Asia, macroeconomic pressures affecting consumer spending, foreign currency volatility, and evolving tax legislation like Pillar Two[121](index=121&type=chunk) Revenue Mix - First Six Months of 2025 | Category | % of Net Revenues | | :--- | :--- | | International Business | 57% | | Levi's® Brand | ~94% | | DTC Channel | 51% | | Wholesale Channel | 49% | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q2 2025 net revenues grew **6.4%** to **$1.45 billion**, with gross margin expanding to **62.6%** due to lower product costs, and operating income surging to **$108.0 million** from **$20.9 million** due to revenue growth, margin expansion, and significantly lower restructuring charges Net Revenues Growth by Segment & Channel (Q2 2025 vs Q2 2024) | Segment/Channel | Reported Growth | Organic Growth | | :--- | :--- | :--- | | **Total** | **6.4%** | **8.8%** | | Americas | 5.1% | 8.9% | | Europe | 14.0% | 14.6% | | Asia | (0.9)% | 0.2% | | Beyond Yoga® | 11.9% | 11.9% | | Wholesale | 2.7% | 7.3% | | DTC | 10.5% | 10.3% | - Gross margin for Q2 2025 increased to **62.6%** from **61.3%** year-over-year, primarily due to lower product costs, favorable channel mix, and higher full-priced sales[146](index=146&type=chunk)[147](index=147&type=chunk) - SG&A expenses increased **4.6%** to **$791.0 million** in Q2 2025, but decreased as a percentage of revenue to **54.7%** from **55.7%** year-over-year[133](index=133&type=chunk)[148](index=148&type=chunk) Operating Income by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Americas | $153.3 | $126.5 | | Europe | $69.4 | $53.3 | | Asia | $29.6 | $33.9 | | Beyond Yoga® (loss) | ($4.4) | ($2.9) | | **Total Operating Income** | **$108.0** | **$20.9** | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position of approximately **$1.5 billion**, with capital allocation priorities focused on reinvestment, dividends, and share repurchases, having paid **$102.8 million** in dividends and repurchased **$30.5 million** of stock in the first half of 2025 - Total liquidity position as of June 1, 2025, was approximately **$1.5 billion**[170](index=170&type=chunk) - Capital allocation priorities are: 1) reinvestment in the business, 2) returning capital to stockholders via dividends (target **25-35%** payout ratio) and share buybacks, and 3) pursuing strategic acquisitions[168](index=168&type=chunk) - In the first six months of 2025, the company used cash for **$102.8 million** in dividend payments and **$30.5 million** in common stock repurchases[176](index=176&type=chunk) - Cash provided by operating activities decreased to **$238.0 million** for the first six months of 2025 from **$548.8 million** in the prior year, primarily due to higher spending on inventory and incentive payments[174](index=174&type=chunk) [Non-GAAP Financial Measures](index=42&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBIT and Adjusted Net Income to provide a clearer view of underlying business trends, with Adjusted EBIT increasing **38.7%** to **$119.3 million** in Q2 2025 Reconciliation of Net Income to Adjusted EBIT (Q2 2025, in millions) | Metric | Amount | | :--- | :--- | | **Net income from continuing operations** | **$79.6** | | Income tax expense | $22.9 | | Interest expense | $11.8 | | Other (income) expense, net | ($6.3) | | Restructuring charges, net | $6.8 | | Restructuring related charges and other, net | $4.5 | | **Adjusted EBIT** | **$119.3** | Reconciliation of Diluted EPS to Adjusted Diluted EPS (Q2 2025) | Metric | Amount | | :--- | :--- | | **Diluted EPS from continuing operations** | **$0.20** | | Restructuring charges, net | $0.02 | | Restructuring related charges and other, net | $0.01 | | Tax impact of adjustments | ($0.01) | | **Adjusted diluted EPS** | **$0.22** | - Organic net revenues, which exclude currency impacts and divestitures, grew **8.8%** in Q2 2025, compared to reported growth of **6.4%**[225](index=225&type=chunk) [Market Risk Disclosures](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes in the company's primary market risk exposures or their management since the 2024 Annual Report on Form 10-K disclosures - There have been no material changes in primary market risk exposures from the information disclosed in the 2024 Annual Report on Form 10-K[254](index=254&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 1, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 1, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[255](index=255&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[256](index=256&type=chunk) Part II [Legal Proceedings & Risk Factors](index=55&type=section&id=Item%201.%20Legal%20Proceedings%20%26%20Item%201A.%20Risk%20Factors) The company is involved in various ordinary course legal proceedings not expected to have a material impact, and there have been no material changes to previously disclosed risk factors - The company does not believe any pending claims, complaints, and legal proceedings will have a material impact on its financial condition, results of operations, or cash flows[258](index=258&type=chunk) - There have been no material changes to the company's previously reported Risk Factors[259](index=259&type=chunk) [Share Repurchases and Equity Sales](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased during Q2 2025, with **$560.4 million** remaining under the share repurchase authority as of July 3, 2025, and no unregistered sales of equity securities occurred - No shares were repurchased during the second quarter of 2025[262](index=262&type=chunk) - The remaining share repurchase authority was **$560.4 million** as of July 3, 2025[262](index=262&type=chunk)

Group 1 - Levi Strauss & Co. is set to report its fiscal second-quarter earnings on July 10, 2025, with analysts projecting adjusted earnings of $0.13 per share on revenue of $1.37 billion, indicating a 19% decline in earnings year-over-year and a 5% decrease in sales compared to the previous year's figures of $0.16 per share and $1.44 billion in revenue [2] - The company has a current market capitalization of $7.8 billion, with revenue over the past twelve months at $6.3 billion, operational profits of $647 million, and net income of $356 million [3] - Levi's management anticipates organic revenue growth of 3.5%–4.5% in Q2, with gross margin expanding by 80–100 basis points, while projecting a revenue decline of 1%–2% for the entire year, excluding tariff effects [2] Group 2 - Historical data shows that LEVI's stock has tended to outperform following earnings announcements, with a 53% occurrence of positive one-day returns and a median one-day increase of 4.2% [2][5] - Over the last five years, there have been 17 earnings data points recorded, with 9 positive and 8 negative one-day returns, while the percentage of positive returns decreases to 33% when examining data from the last three years [5] - The correlation between short-term and medium-term returns following earnings can be analyzed to identify trading strategies, with a focus on pairs that exhibit the highest correlation [6][7]

Group 1 - Wall Street analysts expect Levi Strauss (LEVI) to report quarterly earnings of $0.14 per share, reflecting a year-over-year decline of 12.5% [1] - Revenues are anticipated to be $1.37 billion, down 5.2% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts' reassessment of their initial estimates [1][2] Group 2 - Analysts estimate 'Geographic Revenues- Americas' will reach $712.89 million, showing a year-over-year change of +0.1% [4] - 'Geographic Revenues- Europe' is projected to be $356.88 million, indicating a change of +0.8% from the prior-year quarter [4] - 'Geographic Revenues- Other Brands' is expected to be $34.25 million, suggesting a significant decline of -70.2% year over year [4] Group 3 - 'Geographic Revenues- Asia' is estimated at $261.86 million, reflecting a year-over-year change of +0.7% [5] - Over the past month, shares of Levi Strauss have returned +10.6%, outperforming the Zacks S&P 500 composite's +5.2% change [5] - Currently, LEVI holds a Zacks Rank 3 (Hold), indicating its performance may align with the overall market in the near future [5]

Company Performance - Levi Strauss (LEVI) closed at $18.87, reflecting a +2.06% change from the previous day's closing price, outperforming the S&P 500 which saw a loss of 0.11% [1] - Over the last month, Levi Strauss shares increased by 8.19%, surpassing the Retail-Wholesale sector's gain of 2.53% and the S&P 500's gain of 5.17% [1] Upcoming Earnings - The upcoming earnings report for Levi Strauss is scheduled for July 10, 2025, with projected earnings of $0.14 per share, indicating a year-over-year decline of 12.5% [2] - Revenue for the same quarter is expected to be $1.37 billion, reflecting a 5.23% decrease from the previous year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates predict earnings of $1.23 per share and revenue of $5.97 billion, representing declines of -1.6% and -6.11% respectively from the previous year [3] - Recent revisions to analyst forecasts for Levi Strauss are important as they indicate short-term business trends and can reflect analysts' outlook on the company's health and profitability [3] Valuation Metrics - Levi Strauss is currently trading at a Forward P/E ratio of 15.03, which is lower than the industry average Forward P/E of 17.38 [6] - The company has a PEG ratio of 1.74, compared to the Retail - Apparel and Shoes industry average PEG ratio of 1.94 [6] Industry Ranking - The Retail - Apparel and Shoes industry, which includes Levi Strauss, ranks 187 in the Zacks Industry Rank, placing it in the bottom 25% of over 250 industries [7] - Research indicates that industries in the top 50% of the Zacks Rank tend to outperform those in the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Levi Strauss (LEVI) has consistently beaten earnings estimates and is well-positioned for future earnings reports, particularly with a recent average surprise of 19.94% over the last two quarters [1][2]. Earnings Performance - For the last reported quarter, Levi Strauss achieved earnings of $0.38 per share, surpassing the Zacks Consensus Estimate of $0.28 per share, resulting in a surprise of 35.71% [2]. - In the previous quarter, the company was expected to post earnings of $0.48 per share but delivered $0.50 per share, yielding a surprise of 4.17% [2]. Earnings Estimates and Predictions - Recent estimates for Levi Strauss have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Levi Strauss is +2.94%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [8]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of another earnings beat, with historical data indicating that stocks with this combination beat consensus estimates nearly 70% of the time [6][8]. Importance of Earnings ESP - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]. - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [9].

Core Viewpoint - Brokerage recommendations, particularly for Levi Strauss (LEVI), are often relied upon by investors, but their effectiveness in guiding investment decisions is questionable [1][5][10]. Brokerage Recommendation Summary - Levi Strauss has an average brokerage recommendation (ABR) of 1.50, indicating a consensus between Strong Buy and Buy, based on 12 brokerage firms [2]. - Out of the 12 recommendations, 9 are Strong Buy, accounting for 75% of the total recommendations [2]. - Despite the favorable ABR, relying solely on this information for investment decisions may not be advisable, as studies suggest brokerage recommendations often lack success in identifying stocks with high price appreciation potential [5][10]. Analyst Bias and Reliability - Brokerage analysts tend to exhibit a positive bias in their ratings due to the vested interests of their firms, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. - This misalignment of interests can result in misleading insights regarding a stock's future price movements [7][10]. Zacks Rank Comparison - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is distinct from ABR, as it is a quantitative model that reflects timely earnings estimates, while ABR may not always be up-to-date [9][12]. Current Earnings Estimates for Levi Strauss - The Zacks Consensus Estimate for Levi Strauss remains unchanged at $1.23 for the current year, indicating steady analyst views on the company's earnings prospects [13]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for Levi Strauss, suggesting caution despite the Buy-equivalent ABR [14].

Core Viewpoint - Levi Strauss (LEVI) is anticipated to report a year-over-year decline in earnings due to lower revenues, which could significantly influence its near-term stock price depending on how actual results compare to consensus estimates [1][3]. Earnings Expectations - The consensus estimate for Levi Strauss is an earnings per share (EPS) of $0.13, reflecting an 18.8% decrease year-over-year [3]. - Expected revenues for the quarter are $1.37 billion, down 5.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook among covering analysts [4]. - The Most Accurate Estimate for Levi Strauss is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.99%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [9][10]. - Levi Strauss currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Levi Strauss exceeded the expected EPS of $0.28 by delivering $0.38, resulting in a surprise of +35.71% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Conclusion - While Levi Strauss does not appear to be a strong candidate for an earnings beat, investors should consider other influencing factors when making decisions regarding the stock ahead of the earnings release [17].

Core Viewpoint - Brokerage recommendations, particularly for Levi Strauss, show a strong positive bias, which may not align with actual stock performance, suggesting that investors should validate these recommendations with their own research [5][10]. Group 1: Brokerage Recommendations - Levi Strauss has an average brokerage recommendation (ABR) of 1.50, indicating a consensus between Strong Buy and Buy, based on 12 brokerage firms [2]. - Out of the 12 recommendations, 9 are classified as Strong Buy, accounting for 75% of the total recommendations [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations often fail to guide investors effectively towards stocks with high potential for price appreciation [5]. - Analysts from brokerage firms tend to exhibit a bias towards issuing more favorable ratings than warranted, leading to potential misguidance for investors [10]. Group 3: Zacks Rank vs. ABR - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of near-term stock price performance compared to the ABR [8][11]. - The Zacks Rank is displayed in whole numbers and is updated more frequently, reflecting timely changes in earnings estimates, unlike the ABR which may not be current [9][12]. Group 4: Current Earnings Estimates for Levi Strauss - The Zacks Consensus Estimate for Levi Strauss remains unchanged at $1.23 for the current year, indicating stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Levi Strauss holds a Zacks Rank of 3 (Hold), suggesting caution despite the favorable ABR [14].

Company Performance - Levi Strauss (LEVI) ended the latest trading session at $17.74, reflecting a -1.06% change from the previous close, underperforming the S&P 500's daily loss of 0.67% [1] - Over the past month, shares of Levi Strauss gained 12.34%, outperforming the Retail-Wholesale sector's gain of 9.36% and the S&P 500's gain of 10.65% [1] Upcoming Earnings - The company is expected to report an EPS of $0.13, which represents an 18.75% decrease from the same quarter last year [2] - Revenue is forecasted to be $1.37 billion, indicating a 5.23% decline compared to the same quarter of the previous year [2] Full Year Estimates - For the full year, analysts expect earnings of $1.23 per share and revenue of $5.97 billion, marking changes of -1.6% and -6.11% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Levi Strauss reflect near-term business trends, with positive changes indicating a favorable outlook on the company's health and profitability [4] Zacks Rank - The Zacks Rank system currently rates Levi Strauss as 3 (Hold), with the consensus EPS estimate remaining steady over the past month [6] Valuation Metrics - Levi Strauss is trading at a Forward P/E ratio of 14.58, which is below the industry average Forward P/E of 17.35 [7] - The company has a PEG ratio of 1.69, compared to the industry average PEG ratio of 1.92 [7] Industry Context - The Retail - Apparel and Shoes industry, which includes Levi Strauss, has a Zacks Industry Rank of 137, placing it in the bottom 45% of over 250 industries [8]