Levi Strauss Q2 Revenue Up 7.6% to $1.56B but Guidance Sinks Shares
LEVI•Levi Strauss & Co. posted Q2 revenue of $1.56 billion, up 7.6% year-over-year, with direct-to-consumer sales rising 11% and adjusted net income climbing 24%. Shares fell 1.18% after management issued conservative full-year guidance and warned of tariff headwinds that could pressure margins.
1. Q2 Financial Results
Levi Strauss & Co. delivered second-quarter revenue of $1.56 billion, marking a 7.6% increase year-over-year. Adjusted net income rose 24% while direct-to-consumer channels grew 11%, helping the company exceed consensus revenue and EPS estimates.
2. Conservative Full-Year Outlook
Management projected cautious full-year revenue growth and modest margin expansion, below analyst forecasts. The forecast cited ongoing tariff headwinds and potential cost pressures from global trade tensions.
3. Market Reaction
Following the cautious guidance, Levi Strauss shares dropped 1.18% in trading. Investors appeared wary that lingering tariff impacts and conservative projections could curb profitability gains despite the strong quarterly beat.
