Levi Strauss’ Financial Results Beat On Top And Bottom Lines

The stock of Levi Strauss (LEVI) is up 7% after the clothing retailer known for its blue jeans reported financial results that beat Wall Street forecasts and raised its forward guidance.San Francisco-based Levi Strauss reported earnings per share (EPS) of $0.22 U.S., which topped the consensus forecast among analysts that called for $0.13 U.S. Revenue in the year’s second quarter totaled $1.45 billion U.S., which was ahead of the $1.37 billion U.S. expected on Wall Street. Sales were up 6% from a year earlier.Looking ahead, Levi Strauss raised its full-year guidance, saying it’s working to absorb some of the costs from higher tariffs. The denim maker said it now expects full-year earnings of $1.25 U.S. to $1.30 U.S. per share, up from a previous forecast of $1.20 U.S. to $1.25 U.S.The top end of the new outlook is better than the $1.23 U.S. that analysts had anticipated.The company now expects sales to rise between 1% and 2% this year, up from previous guidance of down 1% to 2%. That range is also ahead of Wall Street expectations, which saw revenue declining 5.2%.Levi Strauss’ current forecast assumes a 30% tariff on China, where the company manufactures about 1% of its clothing, and a 10% tariff on the rest of the world. Those assumptions could change as U.S. President Donald Trump negotiates trade deals with key manufacturing regions, notably in Asia.Management at the company has said that 60% of the products they sell are manufactured outside the U.S. However, for the time being, Levi Strauss said that it plans to absorb the tariff impacts without raising prices on consumers. To that end, the company forecasts that tariffs will impact its business by $25 million U.S. to $30 million U.S. for the rest of 2025, or about two to three cents per share.Prior to today (July 11), LEVI stock had risen 13% this year to trade at $19.73 U.S. per share.