Levi Strauss & Co. gained in after-hours deals on Monday (Tuesday AEST) after the denim giant reported stronger-than-expected first-quarter earnings and reaffirmed its full-year outlook, excluding the effects of newly announced tariffs.
The company posted adjusted earnings of US$0.38 per share, beating expectations of $0.28 per share. Revenue rose 3% year-on-year to $1.53 billion, slightly under the consensus estimate of $1.54 billion.
The figures exclude approximately $67 million in revenue from the Dockers brand, which has been reclassified as discontinued operations.
“We exceeded revenue and profitability expectations in Q1 marking a strong start to the year, another proof point that our transformation strategy is working,” said Michelle Gass, President and CEO of Levi Strauss & Co.
“The Levi’s brand is stronger than ever, and we will continue to fuel this momentum through a robust product pipeline and by keeping the brand firmly at the center of culture across the globe."
Levi’s maintained its financial guidance for the 2025 fiscal year, excluding the potential consequences of President Donald Trump’s sweeping new tariffs.
The company continues to project earnings per share in the range of $1.20 to $1.25, in line with analyst forecasts of $1.22.
Revenue is expected to fall between 1% and 2% compared to 2024, consistent with previous guidance.
“We are maintaining our 2025 top- and bottom-line guidance, which excludes any impact from the recent tariff announcements, and we anticipate minimal impact to our Q2 margin outlook,” said Harmit Singh, Levi’s chief financial and growth officer.
He added that much of the company’s spring and early summer inventory had already arrived in the United States, limiting short-term tariff exposure.
The outlook is based on the assumption that there will be no significant deterioration in consumer spending, inflation, or supply chain conditions, nor any major retaliatory trade actions.
Singh also noted that Levi’s is actively engaged in scenario planning to counter possible tariff-related disruptions, including price increases and changes to sourcing. “We recognise this is a quickly evolving macro situation and we have to see where the dust settles to give you the guidance that is going to be as helpful to you as possible,” he said.
At the time of writing, Levi Strauss & Co. (NYSE: LEVI) stock was trading at US$13.85, up 2.6% from Monday's close of $13.5. The stock reached a day low of $12.82 and a day high of $14.10. The company's market cap stands at US$5.34 billion.
