Levi Strauss keeps the annual forecast, the shares increase by more than 7%

From Savyata Mishra

(Reuters) -Levi Strauss claimed his annual forecast for sales and profit on Monday, without the effects of tariffs, and achieved a quarterly profit in front of Wall Street destinations, whereby his shares were sent by more than 7% in the working hours.

The tariffs of President Donald Trump triggered the tariffs about a global downturn and sharp price increases for articles such as clothing and shoes.

“While we realize that we work in an uncertain environment, our global footprint, strong margin structure and agile supply chain position us to navigate the balance of the year and beyond,” said President and Managing Director Michelle Gass on Monday in a statement.

The company said in January that a diverse supply chain in 25 countries would enable cross-source products.

Levi imported only about 1% of his goods directly from China to the USA, while this was about 5% for Mexico, his managers announced in January.

The retailer sees the price increases as one of the mitigating measures, said Gass and added that the price increases will be “surgical”.

It has the demand for wide and tube jeans – a trend corresponds to competitors such as Abercrombie & Fitch and GAP – although buyers were selective for expenses for discretionary objects.

In its quarterly submission to the supervisory authorities, the company added that it could analyze the effects of tariffs and the effects.

“We expect these new tariffs to have material effects on our business results in the 2025 financial year,” added.

It also said that the environment could influence production and distribution.

“If these disorders remain, we may have to change our current procurement practices that have an impact on our product costs and, if no less, material adverse effects on our business and our business results,” warned it.

“In view of the fact that the situation is fluid and unprecedented, the effects (tariff) are uncertain,” said CFO Harmit Singh in an appeal.

Rachel Wolff, analyst at EMARKETER, said: “Levi Strauss’ unchanged forecast shows the sheer planning of planning because the uncertainty relates to Trump’s tariff brands.”

As part of his plan to rationalize business activity, Levi said last October that it explored a sale of dockers who experienced a demand stamp.

The company assumes that the net turnover of Fiscal 2025 in the range of 1% and 2% has dropped and a profit from USD 1.20 to USD 1.25 per share is adjusted.

On the adapted base, it was made in the quarter of 38 cents per share compared to estimates of 28 cents.

(Reporting by Savyata Mishra in Bengaluru and Anuja Bharat Mistry; Editor of Alan Barona and Christopher Cushing)