Levi Strauss Lifts Outlook, Warns on Future Tariffs

Levi Strauss & Co. raised its annual revenue and profit forecasts, now projecting fiscal 2025 sales to rise by 1% to 2% instead of declining, after second-quarter revenue grew 6% year-over-year to $1.45 billion and adjusted net income and earnings per share beat analyst expectations. Shares surged over 7% following the announcement. The company attributes its strong performance to a successful direct-to-consumer strategy, growth in core denim and women's apparel, as well as the Beyond Yoga brand, with international markets, especially Europe, contributing significantly. The revised forecast factors in current tariffs but does not include the impact of potentially higher tariffs on imports from Bangladesh and Cambodia that could take effect August 1. Levi's demonstrated resilience despite a 30% tariff on Chinese imports and 10% on others. The results underscore Levi's adaptability and ability to navigate ongoing trade and supply chain challenges.