Key Takeaways
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- Levi Strauss raised its fiscal-year revenue outlook to about 3% growth, up from a previous 1-2% forecast.
- Direct-to-consumer sales jumped 11%, while wholesale revenue grew 3%.
- Profit and revenue gains were driven mainly by volume increases rather than price hikes.
- The company is successfully repositioning itself as a lifestyle brand beyond denim.
- Tariff headwinds are expected but largely offset by pricing and product mix improvements.
- Adjusted earnings guidance was raised to $1.27–$1.32 per share, above analyst expectations.
What happened?
Levi Strauss reported strong third-quarter results, with net income rising sharply to $218.1 million (55 cents per share), compared to $20.7 million (5 cents) a year earlier. Revenue increased 7% to $1.54 billion, beating analyst estimates. The company’s focus on its direct-to-consumer business and brand repositioning, including marketing partnerships with celebrities and upcoming sports events, helped drive growth. Despite higher tariffs on imports, Levi Strauss expects to limit earnings impact to about 3 cents per share through pricing and product mix.
Why it matters
Levi Strauss’s turnaround strategy is gaining traction, with strong consumer demand supporting volume growth and profitability. The shift toward lifestyle branding and digital sales channels positions the company well for sustained growth. Managing tariff pressures effectively is crucial to maintaining margins amid ongoing global trade uncertainties.
What’s next?
Investors should watch Levi Strauss’s execution of its brand expansion, marketing initiatives, and pricing strategies. The company’s performance during the upcoming holiday season and its ability to navigate tariff-related cost pressures will be key indicators of continued momentum.
