Levi Strauss Boosts Profit Outlook Following Tariff Windfall

The financial lift came primarily from a 16-cent-per-share contribution from tariff refunds, with the company opting to reinvest approximately 5 cents of that sum directly back into operations. This helped drive a profit from continuing operations of $168.6 million, or 43 cents per share, significantly outpacing the $122 million reported during the same period last year. On an adjusted basis, earnings hit 48 cents per share, comfortably beating the 36-cent consensus anticipated by FactSet analysts.

While the bottom line showed strength, top-line performance remained mixed. Revenue climbed 4% to $1.61 billion, landing slightly below analyst expectations of $1.62 billion. Growth was steady across regional markets, with a 4% increase in the Americas and Europe and a 5% gain in Asia. Chief Executive officer noted that direct-to-consumer channels—a pillar of the company’s current growth strategy—fell short of internal targets despite gaining momentum as the holiday season approaches. Consequently, the company adjusted its full-year sales growth projection to 7%, the bottom end of its previous guidance range.