Levi's could raise earnings guidance on stronger topline, UBS says

What Brokers Say Retail & Consumer Written by: Ian Lyall 13:20 Wed 23 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Levi Strauss & Co ( NYSE:LEVI ) View Price & Profile Levi's could raise earnings guidance on stronger topline, UBS says Published: 13:20 23 Sep 2026 EDT Levi Strauss & Co (NYSE:LEVI) is set for a stronger earnings outlook, according to UBS, which expects better revenue growth to lift the apparel maker’s fiscal 2026 earnings guidance and sees further upside if tariff assumptions are lowered. UBS forecasts third-quarter earnings of $0.36 a share, in line with Wall Street expectations, but expects stronger revenue to raise financial 2026 EPS guidance by $0.02 to $1.48-$1.54. The bank sees another four to six cents of potential EPS upside if Levi Strauss lowers the tariff assumptions incorporated into its financial 2026 guidance to reflect current tariff rates. UBS said the main risk is that Levi Strauss adopts a cautious approach to its financial 2026 outlook because of continued macroeconomic uncertainty, creating only a moderately favorable risk-reward profile around the results. The options market is pricing an 8.2% move around the results, above the stock's 6.8% historical average, while UBS expects the shares to move closer to their longer-term average. Sentiment towards Levi Strauss remains bearish, with the shares down 15.1% over three months compared with a 2.9% gain for the S&P 500, UBS said. The bank's Quant Team also found the company's crowding score had fallen to 0.4 from 2 in June and remained below the softlines group average of 4. Levi Strauss trades at about 12 times forward two-year earnings, 7% below its five-year average, although short interest has fallen about 60 basis points to 7.2% since its previous results. UBS Evidence Lab found stronger digital engagement, with visits to Levi Strauss's US website rising 39% year on year in the third quarter and US searches increasing 27% on average. Visits to the company's key European and Asian websites increased 22% and 50%, respectively, while gross merchandise value in China rose 25% year on year on average during the quarter. UBS noted that US direct-to-consumer pricing data indicated the brand had become more promotional, providing a counterpoint to the otherwise solid digital trends. The bank's discounted cash flow analysis also supports its $34 valuation, with UBS expecting Levi Strauss's turnaround plan to drive stronger growth than the market anticipates. Continue reading