Published by Global Banking and Finance Review
Posted on July 10, 2025
(Reuters) -Levi Strauss raised its annual revenue and profit forecasts after beating quarterly estimates on Thursday, betting on strong demand for its denims in regions such as Europe in the face of tariff uncertainty.
The denim maker's efforts to introduce new styles and collections including dresses, skirts and wide-legged jeans have helped it navigate a challenging market and subdued consumer spending, which continues to weigh on the retail industry.
In Europe, its net revenue rose 14% on a reported basis for the quarter ended June 1, compared with a 2% decline a year earlier.
Revenue in its direct-to-consumer segment increased 11% on a reported basis after rising 8% a year ago.
The Trump administration's unpredictable trade policies with countries such as China and Vietnam have disrupted supply chains for apparel and footwear makers. However, Levi has been leveraging its diverse sourcing network to mitigate the impact from tariffs.
The company expects fiscal 2025 revenue to grow in the range of 1% to 2%, compared with a prior forecast of a 1% to 2% decline.
It also expects annual adjusted earnings per share to be between $1.25 and $1.30, compared with a previous forecast of $1.20 to $1.25 per share.
"Given our strong H1 and continued momentum across the business — and despite higher tariffs — we are raising our full-year revenue and EPS expectations," Chief Financial Officer Harmit Singh said.
Levi said its forecast factors in 30% U.S. tariffs on Chinese imports and 10% on those from other countries, but assumes no significant worsening of the macroeconomic environment such as consumer strain, supply-chain disruptions or further tariff increases.
However, it expects a full-year gross margin expansion of 80 basis points, compared with 100 basis points projected earlier, due to a 20-basis-point impact from tariffs after mitigation plans.
The company's quarterly revenue of $1.45 billion beat analysts' estimate of $1.37 billion, according to data compiled by LSEG.
Its quarterly adjusted profit of 22 cents per share topped estimates of 13 cents per share.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Pooja Desai)
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