Levi Strauss Raises Profit Guidance Due to Tariff Refunds, But Lowers Revenue Outlook
Levi Strauss & Co. reported better-than-expected earnings for its fiscal third quarter and raised its full-year profit guidance due in part to tariff refunds. However, the company lowered its net revenue growth forecast to the lower end of its previous range at 7%. The denim retailer saw a 4% increase in Americas net revenues but noted a decline in U.S. sales by 1%, which contributed to mixed performance across regions. Levi's operating margin for Q3 rose significantly year-over-year, reaching 13.8% from 10.8%, largely due to the tariff refunds that added nearly 5 percentage points to its margins and a 16-cent boost per share in earnings. The company also reported $1.61 billion in revenue compared with an expected $1.62 billion, while net income fell year-over-year despite higher sales. CEO Michelle Gass expressed optimism about the holiday season's performance based on recent trends but acknowledged underperformance in its direct-to-consumer segment during Q3.
Tickers: $LEVI
Topics: Earnings Operating Margin Revenue Guidance Tariff Refunds
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