Levi Strauss is expected to deliver Q1 EPS of $0.37, matching the upper end of its $0.35–0.38 guidance. Jefferies highlights a modest upside bias driven by steady execution and improving consumer engagement, setting the stage for a potentially positive report after Tuesday’s market close.

The company could achieve 7–8% year-over-year organic sales growth, well above its 4–5% annual target, fueled by momentum in categories like baggy denim, tops and women’s apparel. Gross margins are projected to remain flat year-over-year, countering earlier expectations of a slight decline.

Rising oil prices pose a demand and cost pressure that could create a mid-teens-cent headwind to annual earnings through higher freight costs. Elevated macroeconomic volatility and consumer credit dynamics add uncertainty, prompting management’s historically cautious stance despite potential upside.

Levi Strauss shares have fallen nearly 10% over the past three months and trade at roughly 12x forward earnings, in line with peers. Jefferies maintains a Buy rating, citing improving business quality and a strong balance sheet, but notes that stronger results or an upbeat outlook will be needed to shift sentiment.