Levi Strauss is increasing its sales and profit expectations for this year, but only if tariffs don’t get any higher.
The jeans maker cited the 30% tariff on Chinese imports, where most of its production takes place, and a potential change in tariffs for other countries, primarily Southeast Asia. CEO Michelle Gass said the company is absorbing costs to avoid steep price increases.
Levi’s is currently forecasting $1.25-$1.30 per share in adjusted earnings, up from previous forecasts of $1.20-$1.25. The company has been performing well, with strong demand and a 6% increase in sales compared to last year.
The company also cut its gross margin guidance by 0.2 percentage points due to the impact of tariffs on profits. However, it still expects gross margin to grow by 0.8 percentage point.
For the current quarter, Levi’s projects earnings per share to be between 28 cents and 30 cents, which is in line with expectations. The company also raised its full-year revenue guidance, now expecting sales to rise between 1% and 2%.
Levi Strauss has been focusing on driving direct sales through e-commerce and owned channels, which have delivered consistent, healthy comps alongside improving profitability. Online sales are now profitable due to the company’s ability to leverage costs better through scale.
The company has also seen success in expanding its women’s apparel business, with revenue up 14% and sales of tops increasing by 16%. Levi Strauss is working to stay relevant with consumers, including a recent partnership with Beyonce.
Source: https://www.cnbc.com/2025/07/10/levi-strauss-levi-earnings-q2-2025.html