Levi’s Cuts Full-Year EPS Outlook, Stock Drops 5% After Q2 Beat
LEVI•Levi’s Q2 adjusted EPS of $0.44 topped the $0.40 consensus and revenue rose 6% to $1.72 billion versus $1.68 billion estimates. The company cut full-year EPS guidance to $1.35–$1.50 from $1.60, triggering a 5% share decline.
1. Q2 Earnings Exceed Estimates
Levi’s posted Q2 adjusted EPS of $0.44, beating the $0.40 consensus, and reported revenue of $1.72 billion, up 6% year-over-year versus the $1.68 billion forecast. Strong growth in direct-to-consumer sales and a 4% increase in wholesale shipments underpinned the quarter’s performance.
2. Revised Full-Year Guidance
Management lowered its full-year adjusted EPS outlook to a range of $1.35–$1.50 from the prior $1.60 projection and trimmed revenue growth expectations to mid-single digits. The revised guidance reflects elevated promotional activity and investments in global supply chain enhancements.
3. Market Reaction and Outlook
Shares fell 5% on the guidance setback, as investors weighed shorter-term margin pressure against long-term brand momentum. Analysts noted that cost discipline and digital channel expansion will be critical for achieving the revised targets.
