Levi Strauss & Co.: 2Q Preview: see room for upside despite timing noise

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Levi Strauss & Co.: 2Q Preview: see room for upside despite timing noise

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Levi Strauss & Co.

2Q Preview: see room for upside despite

timing noise

Maintain Rating: BUY | PO: 27.00 USD | Price: 24.83 USD

Still early innings of EPS/valuation upside; Maintain Buy 01 July 2026

We maintain our Buy; at ~15x 27E P/E, we see a compelling opportunity to own a brand Equity

still in early stages of a transition to higher-quality, consistent growth. LEVI reports

F2Q26 (ended 5/31) EPS on Wednesday 7/8. We forecast $0.23 EPS vs. VA consensus of Kendall Toscano Research Analyst

$0.24 (see Exhibit 1 for more on BofA vs. Street estimates). We see potential for upside BofAS

supported by strong underlying demand (despite a negative timing shift impacting +1kendall.toscano@bofa.com646 855 1704

Europe wholesale in 2Q) and a more favorable tariff environment. Lorraine Hutchinson, CFA

Research Analyst

Strong momentum partially offset by 2Q wholesale shift BofAS+1 646 855 0951

We forecast 2Q total sales growth of 3% ccy. This reflects our outlook for continued lorraine.hutchinson@bofa.com

strong, DTC-led momentum to be partially offset by a 200bp headwind from Europe Trevor Tompkins

wholesale timing ($30mn shift from 2Q into 1Q). We expect underlying wholesale ResearchBofAS Analyst

demand to remain healthy, esp. as expanded lifestyle offerings (incl. women’s and tops) +1 646 855 0343

trevor.tompkins@bofa.com

gain traction with partners – which was a key contributor to LEVI’s 1Q beat and raise.

Despite a choppy international macro backdrop during 2Q (esp. in April), we think healthy

global denim demand and whitespace in underpenetrated categories positions LEVI well.

Stock Data

See gross margin upside from tariffs in 2Q and beyond

Price 24.83 USD