Here's How Levi Strauss Stock Is Poised Ahead of Q1 Earnings

Levi Strauss & Co. LEVI is likely to register top-line growth when it reports first-quarter fiscal 2026 earnings on April 7, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $1.65 billion, which indicates a rise of 3.2% from the year-ago quarter’s level.

The consensus estimate for quarterly earnings has been stable over the past 30 days at 37 cents per share and indicates a drop of 2.6% from the year-earlier quarter’s tally.

The company has an average trailing four-quarter earnings surprise of 26.9%. It delivered an earnings surprise of 5.1% in the last reported quarter.

Factors Likely to Influence LEVI’s Q1 Results

Levi Strauss’ quarterly performance is likely to have benefited from omnichannel initiatives and brand strength, including jeanswear. The company has been strengthening its omni capabilities, including Buy Online, Pick-up in Store, line-queuing, same-day delivery, mobile checkout and return capabilities, including contactless returns. This ensures a seamless shopping experience for customers across online and offline channels.

The company is shifting toward a direct-to-consumer model, where it sells more products through its own stores and online platforms instead of relying heavily on third-party retailers. This helps improve margins, strengthen customer relationships and give better control over the brand. Levi Strauss is expanding beyond its traditional denim business to become a broader lifestyle brand, offering a wider range of products such as tops, dresses and activewear.

The company is introducing higher-end products to attract premium customers, while also keeping value-based options to cater to price-sensitive consumers. Additionally, Levi Strauss is streamlining its brand portfolio by focusing more on its core Levi’s brand and high-growth categories. LEVI has been focused on elevating brands, investing in digital tools and capabilities and pacing up efforts to diversify across geographies, product categories and distribution channels. Such strengths, along with its solid direct-to-consumer business, are likely to have bolstered the quarterly performance.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $812 million for Americas, $455 million for Europe and $340 million for Asia, indicating respective increases of 3.7%, 13.8% and 10.3% year over year.

However, a challenging operating backdrop, including supply-chain disruptions, inflationary pressures and foreign currency translations, is likely to have been a concern. These headwinds, coupled with any deleveraged selling, general and administrative costs, are expected to have somewhat weighed on the company’s profitability.

Levi Strauss & Co. Price and EPS Surprise

Levi Strauss & Co. price-eps-surprise | Levi Strauss & Co. Quote

What the Zacks Model Predicts

Our proven model doesn’t conclusively predict an earnings beat for Levi Strauss this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Levi Strauss has an Earnings ESP of 0.00% and a Zacks Rank of 3.

Stocks With The Favorable Combination

Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:

FIGS, Inc. FIGS has an Earnings ESP of +68% and a Zacks Rank of 1. FIGS’ earnings for the first quarter of 2026 are pegged at a penny per share. The consensus mark for its quarterly earnings was at a loss of a penny 30 days ago. The company reported break-even earnings in the year-earlier quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIGS’ quarterly revenues is pegged at $150 million, which suggests growth of 20% from the figure reported in the prior-year quarter. FIGS has a trailing four-quarter earnings surprise of 187.5%, on average.

Wingstop Inc. WING currently has an Earnings ESP of +2.15% and a Zacks Rank of 3. WING is likely to register a bottom-line increase when it reports third-quarter 2026 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.05 suggests an increase of 6.1% from the year-ago fiscal quarter’s reported number.

WING’s top line is expected to have improved from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $190.5 million, suggesting growth of 11.3% from the prior-year fiscal quarter’s reported figure. WING has a trailing four-quarter earnings surprise of 17.6%, on average.

Dutch Bros BROS currently has an Earnings ESP of +2.20% and a Zacks Rank of 3. The company is expected to have registered a bottom-line increase when it reports first-quarter 2026 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests a rise of 7.1% from the year-ago quarter.

The consensus mark for revenues is pegged at $447.2 million, indicating a rise of 25.9% from the figure reported in the year-ago quarter. BROS has a trailing four-quarter earnings surprise of 41.6%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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