11:09 AM EDT, 06/24/2025 (MT Newswires) -- Levi Strauss (LEVI) continues to gain market share, supported by outperformance in the wholesale category, BofA Securities said in a note Tuesday.

The investment firm estimates Q2 earnings per share at $0.14, slightly above consensus, driven by stronger revenue expectations.

While Q2 typically represents only about 11% of full-year EPS, BofA called it a pivotal quarter for management to deliver a "clean" result that could help rebuild investor confidence and mark the beginning of a positive estimate revision cycle.

For fiscal 2025, BofA forecasts 2% sales growth, versus the company's current guidance of a 1% to 2% decline. Upside to estimates could come from continued wholesale momentum and foreign exchange tailwinds.

The firm also noted Levi Strauss is well-positioned to manage potential US tariffs, citing the company's high international exposure, minimal China-to-US sourcing, a diversified supply chain, and strong brand equity.

The brokerage estimated that a 10% global tariff and 55% tariff on China-sourced goods could result in an unmitigated 140 basis point hit to gross margin, while a 20% tariff scenario could lower its fiscal 2025 EPS forecast by 8 cents, or 6%. However, it expects much of this impact to be mitigated through vendor negotiations and selective price increases.

Levi Strauss is scheduled to report Q2 results on July 10.

BofA raised its price objective on Levi Strauss to $21 from $20, while maintaining its buy rating.

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