Levi Strauss & Co. has announced a robust upward revision to its financial forecasts for the current fiscal year, leading to a substantial surge in its share price. This positive adjustment reflects the company's confidence in its operational momentum and strategic resilience, even amidst a challenging global trade environment.
The iconic apparel manufacturer, known for its denim products, now projects its fiscal 2025 revenue to expand between 1% and 2%. This marks a notable shift from its previous forecast, which anticipated a contraction in sales. Concurrently, the company has elevated its earnings per share (EPS) guidance, now expecting figures between $1.25 and $1.30, an increase from the earlier range of $1.20 to $1.25. These revised estimates surpass the consensus predictions from Wall Street analysts, who had largely anticipated flat revenue performance and lower EPS.
Following this encouraging announcement, Levi's stock experienced a nearly 7% jump in after-hours trading. This recent uptick builds upon an already impressive performance throughout 2025, during which the company's shares had climbed approximately 14% by the close of Thursday's trading session.
Harmit Singh, Levi's Chief Financial and Growth Officer, emphasized that this enhanced outlook is a testament to the continued positive trajectory across various segments of the business. He specifically noted that this achievement is remarkable given the backdrop of higher tariffs. The revised financial projections incorporate assumptions of a 30% tariff rate on goods from China and a 10% tariff on products originating from other regions, indicating the company's ability to navigate and mitigate these cost pressures.
For the fiscal second quarter, Levi's reported strong financial results, with revenue reaching $1.45 billion. This figure represents a 6% increase compared to the same period last year and exceeded the analyst consensus provided by Visible Alpha. Adjusted net income for the quarter stood at $89 million, translating to 22 cents per share, a significant improvement over the $65 million, or 16 cents per share, reported in the prior-year quarter. These solid quarterly figures further underscore the company's operational strength and its capacity to outperform market expectations.
The denim giant's ability to not only meet but exceed financial expectations, while also providing an upgraded outlook, highlights its adaptability and strong brand appeal in a dynamic market. The company’s strategic planning and operational efficiency appear to be effectively counteracting the headwinds presented by international trade policies, paving the way for continued growth and shareholder value.