Levi Strauss Q2 Earnings Beat Estimates, Shares Jump 8% in Premarket Trading

Levi Strauss reported Q2 revenue of $1.45 billion, beating estimates of $1.37 billion. The company also reported adjusted earnings of $0.22 per share, exceeding analyst estimates of $0.13 per share. Shares of Levi Strauss rose 7.9% in pre-market trading.

Levi Strauss & Co. (NYSE: LEVI) reported its second-quarter (Q2) 2025 financial results, with revenue and earnings per share (EPS) exceeding analysts' expectations. The company's revenue for the quarter was $1.45 billion, surpassing estimates of $1.37 billion. Adjusted EPS was $0.22 per share, beating the consensus estimate of $0.13 per share. Shares of Levi Strauss rose 7.9% in pre-market trading following the announcement.

The company's CEO, Michelle Gass, stated that the strong performance reflects broad-based strength across the business. Levi Strauss also raised its full-year revenue and EPS expectations. The company now anticipates full-year adjusted EPS to be between $1.25 and $1.30 per share, up from a prior forecast of between $1.20 and $1.25. Full-year revenue is expected to grow by 1% to 2%, up from previous guidance of a decline of 1% to 2% [2].

Levi Strauss' gross margin improved to 62.6% in Q2 2025, up from 61.4% in the same period last year, driven by lower product costs and a favorable channel mix [2]. The company's direct-to-consumer channel reported an 11% net revenue increase, while its wholesale channel saw a 3% net revenue increase. The Levi's brand saw a 9% increase in global organic sales [2].

Despite the positive performance, Levi Strauss is facing potential challenges from higher tariffs. The company anticipates tariffs to impact its business by $25 million to $30 million for the rest of the year, or 2 to 3 cents on earnings per share. However, the company is planning to absorb the costs and expects to navigate the tariff headwind [1].

Investment firms have responded positively to Levi Strauss' Q2 results. UBS maintained its Buy rating and $20.00 price target on the stock following the earnings report. Stifel, JPMorgan, Wells Fargo, and Citi also raised their price targets for Levi Strauss' stock [4].

References:
[1] https://www.cnbc.com/2025/07/10/levi-strauss-levi-earnings-q2-2025.html
[2] https://finance.yahoo.com/news/levi-strauss-reports-6-rise-143736751.html
[4] https://investing.com/news/analyst-ratings/levi-strauss-stock-maintains-buy-rating-at-ubs-following-strong-q2-earnings-93CH-4132178