Levi Strauss Beats Earnings Estimates, Holds Steady Despite Tariff Concerns

Levi Strauss & Co. (NYSE: LEVI) posted stronger-than-expected quarterly earnings, pushing its stock up over 7% in after-hours trading. The denim retailer maintained its full-year sales and profit forecast, excluding the impact of tariffs, reflecting confidence in its global operations and flexible supply chain.

CEO Michelle Gass emphasized Levi’s resilience, citing its international presence, strong margins, and agile supply chain as key advantages amid ongoing economic uncertainty. The company, which sources products from 25 countries, imports just 1% of its U.S. merchandise from China and 5% from Mexico.

Levi is considering “surgical” price increases to offset the potential impact of tariffs imposed under President Donald Trump’s trade policies, which have raised concerns of global economic slowdown and rising prices on consumer goods like clothing and footwear. The company also warned that the evolving trade landscape could disrupt production and distribution, potentially affecting costs and operations if not effectively mitigated.

Despite broader retail challenges, Levi reported solid demand for both wide-legged and skinny jeans—echoing trends seen at competitors like Abercrombie & Fitch and Gap—even as consumers remain cautious with discretionary spending.

Levi earned an adjusted 38 cents per share for the quarter, beating Wall Street’s forecast of 28 cents. However, it projects a slight decline in fiscal 2025 net revenue, down 1% to 2%, with adjusted earnings expected between $1.20 and $1.25 per share.

CFO Harmit Singh acknowledged the uncertainty, stating the full impact of tariffs remains unpredictable. Levi is also continuing efforts to streamline its business, including a potential sale of the struggling Dockers brand.

Industry experts highlight the challenge of long-term planning amid fluctuating trade policies, underscoring the need for agility in today’s global retail environment.