Overview

• The denim maker beat expectations with adjusted EPS of $0.34 on revenue of $1.54 billion, with operating margin up to 10.8%.
• Levi now guides to about 6% organic revenue growth and adjusted EPS of $1.27 to $1.32 for fiscal 2025, assuming U.S. tariffs stay at 30% for China and 20% elsewhere through year-end.
• Shares fell about 12% Friday as investors focused on tariff pressures and a softer fourth-quarter margin outlook.
• Targeted price increases, less discounting and growth in direct-to-consumer lifted profitability, with DTC comprising 46% of sales and e-commerce up 16%.
• Management expects roughly a 100-basis-point fourth-quarter gross-margin decline and EPS of $0.36 to $0.38, with higher distribution costs also weighing, while about 70% of holiday inventory is already in place.