Levi Strauss (LEVI) earnings Q2 2025
Levi Strauss He increased full -year guidance on Thursday and said he was trying to absorb some costs from higher tariffs, but President Donald Trump’s trade policy may change as it develops.
Denim manufacturer does not explain the key production centers, but most of its supply comes from Southeast Asia. Many countries in the region have been targeted by Trump’s so -called mutual tariff plan.
Levi’s expect full -year -old earned earnings to be between $ 1.25 and $ 1.30 per share, from a estimation of $ 1.20 to $ 1.25 and LSEG, $ 1.23 is better than $ 1.23. However, this prediction assumes that in China, where Levi produces approximately 1% of its products, it is only a tariff of 30% and Trump’s lock production zones and trade agreements are a 10% tariff for the rest of the world while negotiating trade agreements.
In an interview with CNBC, Levi’s finance chief Harmit Singh said that most of Levi’s sources came from countries such as Pakistan, Bangladesh and Indonesia. Trump has recently threatened Bangladesh and Indonesia with more than 30%tasks. It is not clear how much of Levi’s products are obtained from these regions and 60% of Levi’s work is outside the USA.
For now, Levi’s said he plans to suck what he could do. Policy is currently present, as it is present, tariffs predict that the work of the year will affect only 25 million dollars to $ 30 million or 2 to 3 cents per share.
“We are doing our part. We suck some costs. He said. “We still withdraw the promotions, this is more full -priced sales and some of our new innovations, new harmony, as a premium pricing and buy. So all of this helps us to have the beginning of the tariff wind.”
Beyond the tariffs, Levi gave the second quarter of the financial earnings in the upper and lower lines. Based on a questionnaire of LSEG’s analysts, he did so compared to what Jeans Company’s Wall Street foresees:
- Earning per share: 22 cents set up and 13 cents are expected
- Revenues: 1.45 billion dollars and $ 1.37 billion expected
Levi’s shares increased by 8% in the extended transaction.
The company’s net income for the three -month period, which ended on June 1, was $ 67 million per share or 17 cents per share compared to 18 million dollars or 4 cents per share before. Restructuring and low value expenses, except for one -time fees, as well as other costs, Levi, 22 cents earned per share.
Sales rose to $ 1.45 billion and an increase of approximately 6% from $ 1.36 billion compared to the previous year.
Considering a strong demand, Levi has increased full -year revenue guidance and is now expected to increase sales from 1% to 2% to 2% to an increase of 1% to 2%. This range is far beyond expectations. According to LSEG, analysts expected to reduce income by 5.2%.
Levi’s reduced gross margin guidance by 0.2 percent, and now the gross margin is waiting for a 0.8 percent point to grow due to the effect of tariffs on snow.
Since Gass has taken over as the CEO of the retailer, he has worked to cut low -performance parts of the business. In May, the company announced that it will sell the Dockers brand to the authentic brand group.
He also worked to make direct sales to consumers, focused on e-commerce and stores rather than wholesale partners such as Macy’s and Kohl’s, because he comes with higher margins and gives the company better information about his customers.
During the quarter, Levi’s gross profit margin called the record 62.6% due to less sign, lower product costs and 11% growth in direct sales.
Levi’s, which has been addressing a male shopping for a long time, is trying to win female consumers and expand to a company known for a wide range of clothing. During the quarter, he won these efforts, the income of women’s clothes increased by 14% and rose to 16% of the top sales. Levi’s female category, the retailer’s “highest gross profit margin business”, Sing Singh said.
“The consumer certainly responds in this direction and votes. When we look forward, we trust ourselves.” He said. “We know that there is uncertainty in the world right now, but the consumer proves that it is very resistant to Levi’s.”
It is to ensure that it is still related to consumers at the center of Levi’s strategy. A recent partnership with Beyonce, especially the singer Kovboy Carter continued the tour of the company to keep in mind with shoppers.
In May, the company launched a limited number of Beyonce X Levi’s T -shirts, the first product from cooperation.
He also established a partnership with Nike on Thursday on Levi’s website and some stores. The collection seizes an inspirational of the Air Max 95.
