Levi Strauss (LEVI) could deliver a modest Q1 sales and earnings beat, though the company may remain cautious on its full-year outlook amid macro uncertainty, UBS Securities said in a Thursday note.

Industry and data analytics indicators suggest solid underlying trends for Levi Strauss in the quarter, with US direct-to-consumer sales rising about 2% year over year and web traffic increasing 8% in the US and 11% in key European markets, according to the note.

Despite the expected quarterly beat, UBS expects Levi Strauss to reaffirm its 2026 earnings per share guidance of $1.40 to $1.46, implying 5% to 6% revenue growth, UBS said.

For Q2, UBS expects Levi Strauss to guide to $0.22 to $0.24 EPS, supported by mid-single-digit revenue growth and improving operating leverage.

Levi Strauss will release its Q1 results on April 7.

UBS maintained its buy rating on the stock with a price target of $33.

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