Market Updates

Levi Strauss & Co. increased 1.7% to $19.73 after the apparel and jeans company reported nearly a four-fold increase in quarterly earnings.

Consolidated revenue in the June quarter increased to $1.4 billion from $1.3 billion, net income jumped to $67 million from $18 million, and diluted earnings per share rose to 17 cents from 4 cents a year ago.

For the six-month period, revenue edged higher to $3 billion from $2.8 billion, net income soared to $202 million from $7.3 million, and diluted earnings per share advanced to 51 cents from 2 cents a year ago.

Geographically, in the Americas, net revenues increased 5% on a reported basis and 9% on an organic basis. 

Organic revenue in the U.S. grew 7%, and the Levi’s® brand sales were up 9% globally.

The company's annual revenue guidance is based on the U.S. tariff rate of 30% on imports from China and 10% for the rest of the world for the remainder of the year and excludes the discontinued operations of Dockers.

The company revised higher annual revenue growth to between 1% and 2%, up from the previous estimate of a decline between 1% and 2%.

The organic net revenue growth range was raised to an increase between 4.5% and 5.5%, up from the previous range between 3.5% and 4.5%.

Gross margin expansion was revised to 80 basis points, lower than the previous estimate of up to 100 basis points, due to a 20-basis-point impact from tariffs, including cost control measures. 

The company revised its adjusted diluted earnings per share higher by 5 cents to between $1.25 and $1.30, up from the previously estimated range between $1.20 and $1.25.

The company returned approximately $51 million to shareholders through dividends in the second quarter, an 8% increase from a year ago, representing a dividend of $0.13 per share.

As of June 1, the company had $560 million remaining under its current share repurchase authorization.

The company declared an increase in the dividend to $0.14 per share for the third quarter, totaling approximately $55 million, payable on August 8.


11 Jul, 2025

     

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