LEVI Strauss Q3 Earnings: AI-Driven Outlook and Price Target Hikes Signal Potential Post-Report Movement

Levi Strauss & Co. (NYSE: LEVI) will announce its financial results for the third quarter of fiscal year 2025 after the close of trading on Thursday. The upcoming report comes amid renewed optimism from investors, largely driven by the company’s emphasis on expanding its direct-to-consumer (DTC) operations and sustained global demand for denim apparel.

Analysts expect Levi Strauss to generate roughly $1.5 billion in revenue for the quarter — an increase of about 4% compared with the same period last year. This improvement would mark a turnaround from the 4.5% decline in sales reported a year earlier. The consensus forecast for adjusted earnings stands at $0.31 per share, which, if realized, would reflect a 6% year-over-year decrease.

During the second quarter of 2025, Levi’s financial performance exceeded market projections. The company posted $1.45 billion in revenue, a 6.4% annual increase, surpassing the average analyst estimate by nearly 6%. Earnings per share reached $0.22, outperforming expectations by $0.09. However, despite this recent strength, Levi’s has missed Wall Street revenue forecasts on six occasions over the past two years.

In the broader consumer discretionary sector, results from major peers have been mixed. Nike’s revenue edged up by about 1% year over year — ahead of expectations — while Carnival recorded growth of approximately 3%, only slightly above projections. Following their respective reports, Nike’s shares gained roughly 6.5%, whereas Carnival’s stock declined about 5.6%.

Although the sector as a whole has lagged recently — with an average decline of 3.5% over the past month — Levi’s stock has outperformed, rising about 11% during the same period. Shares currently trade near $24.59, approaching the consensus price target of $25, after advancing more than 40% since the beginning of the year.

Analyst sentiment toward Levi Strauss remains generally positive. Several firms have raised their price targets in light of solid brand momentum and improving fundamentals. For example, Bank of America Securities recently lifted its target from $26 to $27, while UBS reiterated a Buy rating and maintained a $28 target. This optimism reflects confidence in Levi’s global brand strength and management’s strategy to sustain steady growth.

Even so, some analysts maintain a more conservative outlook. An AI-based research model currently assigns an Outperform rating with a $24 price target, citing concerns over valuation levels and exposure to global trade risks. While Levi’s price-to-earnings (P/E) ratio of 22.9x remains below the sector average of 46.1x, its proximity to the industry median of 21.3x suggests limited room for multiple expansion without stronger-than-expected earnings growth.

Meanwhile, options market activity points to expectations of heightened volatility following the upcoming earnings release. Current option pricing implies that traders anticipate a move of more than 10% in either direction once the third-quarter results are made public.