Shares of Levi Strauss & Co (LEVI) jumped 5.11% in after-hours trading on Monday following the company's release of better-than-expected first-quarter 2025 financial results and maintained full-year guidance, despite looming concerns over recent tariff announcements.
The iconic denim maker reported adjusted earnings per share of $0.38 for the quarter ended March 2, significantly beating the analyst consensus estimate of $0.28. Revenue came in at $1.53 billion, slightly below the $1.54 billion expected but up 3% year-over-year on a reported basis and 9% on an organic basis.
"We exceeded revenue and profitability expectations in Q1 marking a strong start to the year, another proof point that our transformation strategy is working," said Michelle Gass, President and CEO of Levi Strauss & Co. "While we recognize that we are operating in an uncertain environment, our global footprint, strong margin structure, and agile supply chain position us to navigate the balance of the year and beyond."
Levi's maintained its fiscal 2025 guidance, projecting organic net revenue growth of 3.5% to 4.5% and adjusted earnings per share between $1.20 and $1.25. However, the company noted that this outlook does not reflect any impact from recently announced tariffs. Chief Financial Officer Harmit Singh stated they anticipate "minimal impact" to second-quarter margin outlook from the tariffs.
The company saw strong performance in key areas: - Americas net revenues increased 6% on a reported basis and 11% organically - Direct-to-Consumer net revenues rose 9% on a reported basis and 12% organically - Gross margin expanded 330 basis points to 62.1%, driven by lower product costs and favorable channel and brand mix
While Levi's results and maintained outlook impressed investors, driving the after-hours stock surge, the company faces uncertainties related to the broader economic environment and potential impacts from new tariffs. Management emphasized their ability to navigate these challenges, citing the company's global presence and operational agility.
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