Denim company Levi Strauss (LEVI) is scheduled to announce its results for the third quarter of Fiscal 2025 (ended August 31, 2025) after the market closes on October 9. LEVI stock has risen more than 40% year-to-date. Despite tariff pressures, Wall Street is bullish on Levi Strauss due to solid denim demand, strong execution, and focus on direct-to-consumer (DTC) business. Wall Street expects Levi to report earnings per share (EPS) of $0.31, reflecting a 6.1% year-over-year decline.
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Meanwhile, revenue is expected to decline 1.1% to $1.5 billion.
Analysts’ Views Ahead of Levi’s Q3 Earnings
Heading into the results, Bank of America Securities analyst Christopher Nardone raised the price target for Levi Strauss stock to $27 from $26 and reiterated a Buy rating. The 4-star analyst noted that the denim category is strong and the brand is gaining traction globally. Nardone sees positive EPS momentum. He stated that his meetings with management gave him more confidence in Levi’s ability to deliver “sustainable, consistent results needed to drive further outperformance.”
Nardone believes that solid demand for denim across brands and retailers, coupled with a strong retail back-to-school season, bodes well for Q3 FY25 results and fourth-quarter guidance. The analyst raised his Q3 EPS estimate by $0.02 to $0.32 to reflect stronger margins.
Meanwhile, UBS analyst Jay Sole reaffirmed a Buy rating on LEVI stock with a price target of $28. Sole stated that checks indicated that the apparel company’s fundamental trends were strong in Q3. The 4-star analyst expects the company to beat Q3 EPS by $0.02. He expects Levi to reiterate its FY25 EPS outlook due to elevated macro uncertainty and potential incremental costs related to tariff rates moving higher since the company’s last guidance update.
AI Analyst Is Cautious on LEVI Stock Ahead of Q3 Print
Interestingly, TipRanks’ AI Analyst has assigned an Outperform rating to Levi Strauss stock with a price target of $24, indicating about 1.2% downside risk. TipRanks’ AI analysis reflects Levi’s strong earnings performance and positive technical indicators. The company’s strategic focus on DTC growth and successful international expansion further enhances its outlook. However, valuation concerns and revenue growth challenges slightly weigh on the overall score for LEVI stock.
Options Traders Anticipate a Major Move on LEVI’s Q3 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently indicates that options traders expect a 10.3% move in either direction for LEVI stock in response to Q3 FY25 results.
Is LEVI Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Strong Buy consensus rating on Levi Strauss stock based on nine Buys and three Hold recommendations. The average LEVI stock price target of $25.27 indicates a 4% upside potential from current levels.
