Levi Strauss & Co. boosted its full-year revenue and profit guidance after beating Wall Street estimates in the most recent quarter, fueled by a solid performance in Europe and stable direct-to-consumer growth, despite ongoing pressures from global trade tensions and tightened consumer spending that affect the apparel industry.
The denim company posted a 14% year-over-year growth in net revenue from its European business for the quarter that ended 1st June, a strong recovery from the 2% drop it recorded in the same quarter last year. Its direct-to-consumer unit also posted strong gains, with reported revenue up 11%, on top of last year’s 8% gain. For the quarter, Levi posted revenue of US $ 1.45 billion, above the estimated US $ 1.37 billion from analysts, based on LSEG data.
Even with continued macroeconomic headwinds and tariff uncertainty—particularly associated with the Trump administration’s erratic trade policies with China and Vietnam—Levi Strauss has relied on a diversified sourcing approach to help blunt the impact. The company stated it has assumed 30% US tariffs on Chinese imports and 10% on imports from other nations in its projections, but said it does not include additional economic weakening or rising trade actions in its assumptions.
Levi’s efforts to diversify its offerings beyond traditional denim—including dresses, skirts, and wide-leg jeans—have helped it stay competitive in a sluggish retail environment. The product innovation appears to be resonating with consumers, helping the brand maintain momentum where many peers are faltering.
The firm now anticipates full-year revenue to increase by 1% to 2%, a reversal of its previous guidance for a decline of 1% to 2%. Adjusted earnings per share for the year are expected to fall between US $ 1.25 and US $ 1.30, from the previously indicated range of US $ 1.20 to US $ 1.25.
Chief Financial Officer Harmit Singh said that given their strong first-half performance and continued momentum across key regions—despite the pressure from higher tariffs—they’re confident in raising their revenue and EPS outlook for the year.
Levi also adjusted its full-year gross margin forecast, now expecting an 80-basis-point improvement rather than the previously anticipated 100 basis points, due to a 20-basis-point hit from tariff-related costs even after mitigation strategies.
