Levi's Q2 Earnings Expected to Decline: Will Historical Patterns Hold True?

Levi Strauss & Co. (NYSE: LEVI) is expected to report a decline in earnings and sales for Q2 2025. Analysts project adjusted earnings of $0.13 per share on revenue of $1.37 billion. The stock has historically performed well post-earnings, rising 53% of the time with a median one-day increase of 4.2%.

U.S. tariffs may impact costs, but Levi’s management anticipates minimal effects on Q2 margins. Organic revenue is forecasted to grow 3.5%–4.5% with gross margin expanding by 80–100 basis points. Full-year revenue is expected to decline by 1%–2% (excluding tariff effects) with gross margin rising to 61.6%.

Levi’s historical post-earnings returns show positive one-day returns about 53% of the time over the past five years. However, this percentage decreases to 33% over the last three years. The median positive one-day return is 4.2%, while the median negative return is -7.7%.

Understanding the correlation between short-term and medium-term post-earnings returns can help traders make informed decisions. Trefis offers a High-Quality portfolio as an alternative investment option that has outperformed the S&P 500 and generated returns exceeding 91% since its inception. Consider the correlation data for potential trading strategies.

Read more at Nasdaq: Will Levi’s Q2 Earnings Follow Historical Patterns?