Key Facts
• On July 10, Levi Strauss’ stock rose in after-hours trading.
• The company raised its full-year revenue forecast for fiscal year 2025.
• New revenue growth projection: 1-2% increase, surpassing analysts’ expectations.
• Previous forecast anticipated a 1-2% decline.
• Gross margin forecast slightly lowered due to tariffs.
• Tariffs: 30% on Chinese imports, 10% on other countries’ products.
• Levi’s stock surged 6.4% in after-hours trading, up 14% year-to-date.
• CEO Michelle Gass expanded product lines, including caps and aprons.
• Collaboration with Nike on denim Air Max 95 sneakers.
• CFO Harmit Singh credited core brand focus and direct-to-consumer (DTC) strategy.
• E-commerce business transitioned from a loss to profitability.
• Q2 revenue (March-May): $1.4 billion, up 6% year-over-year.
• Achieved five consecutive quarters of revenue growth, defying market expectations of a decline.
Summary
Levi Strauss & Co. raised its full-year revenue forecast for fiscal year 2025, projecting a 1-2% increase, surpassing analysts’ expectations of a decline. The company attributed its strong performance to a focus on core brands and a direct-to-consumer strategy, with e-commerce now profitable. Despite lowering its gross margin forecast due to tariffs-30% on Chinese imports and 10% on others-Levi’s stock rose 6.4% in after-hours trading and is up 14% year-to-date. CEO Michelle Gass has expanded product lines, while a collaboration with Nike on denim Air Max 95 sneakers has bolstered sales. Q2 revenue reached $1.4 billion, marking a 6% year-over-year increase and the fifth consecutive quarter of growth.
