Levi Strauss lifts annual profit outlook on tariff refunds, holiday demand
LEVI•Levi Strauss raised its full-year adjusted earnings forecast to $1.54-$1.56 per share from $1.46-$1.52, after receiving $79 million in tariff refunds. Third-quarter revenue rose 4% to $1.61 billion, and adjusted earnings were 48 cents per share.
1. Higher annual outlook
Levi Strauss raised its full-year organic revenue growth outlook to 6%, the upper end of its previous 5.5%-to-6% range. It also lifted its adjusted earnings forecast to $1.54-$1.56 per share from $1.46-$1.52.
2. Quarterly results and demand
Net revenue for the quarter ended August 30 rose 4% to $1.61 billion, roughly in line with estimates, while adjusted earnings of 48 cents per share topped analysts’ estimate of about 36 cents. The company received $79 million in tariff refunds during the quarter and plans to use about $60 million this year on promotions.
3. Sales trends
Comparable sales in Levi Strauss’ direct-to-consumer business were flat, with U.S. sales falling as shoppers faced higher inflation. CEO Michelle Gass said the business fell short of expectations. The women’s line was a bright spot, driven by demand for baggy jeans and expansion into tops, skirts and dresses.
