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Will Levi’s Stock Rally On Its Upcoming Earnings?
Forbes· 2025-10-07 12:30
Financial Performance - Levi Strauss is expected to announce its fiscal third-quarter earnings on October 9, 2025, with analysts forecasting adjusted earnings of 31 cents per share and revenue of $1.50 billion, indicating a 6% decline in earnings and a 1% decrease in sales year-over-year [2] - The company reported a strong Q2 2025, with revenue climbing 6% to $1.45 billion and achieving a record gross margin of 62.6%, alongside a 37% increase in EPS to $0.22 [3] - Over the past twelve months, Levi Strauss has generated $6.3 billion in revenue, with operating profits of $685 million and a net income of $405 million [4] Market Trends and Guidance - The company has raised its full-year guidance to organic sales growth of 4.5–5.5% and an EPS range of $1.25–$1.30, citing direct-to-consumer sales and European performance as key growth drivers [3] - Historical trends indicate that LEVI stock has risen 56% of the time after earnings announcements, with a median one-day increase of 4.6% [2][7] Investment Strategy - For event-driven traders, understanding historical trends may provide an advantage in positioning before earnings or responding to post-release movements [5] - The correlation between short-term and medium-term returns following earnings can inform trading strategies, particularly if 1D and 5D returns exhibit strong correlation [8][9]