Levi sees revenue growth offsetting most of tariff impact
The company now sees revenue up between 1 per cent and 2 per cent for the current fiscal year, above the average analyst estimate and up from a previous view that sales would decline 1 to 2 per cent. Levi also slightly lowered its guidance for gross margin due to tariffs, which the company factored in as 30 per cent for products imported from China and 10 per cent for the rest of the world.
The shares jumped 7.5 per cent at 4.40 pm in extended New York trading. The stock has advanced 14 per cent so far this year.
The results suggest that Levi's efforts to branch into new products and categories, part of what the company calls the 'head-to-toe denim lifestyle', are paying off. Led by chief executive officer Michelle Gass, Levi has sought to expand its offerings, which include everything from caps to aprons. It's collaborating with Nike Inc. to sell denim Air Max 95 sneakers, while looking to boost sales through its own stores and website.
Tariffs' impact on profitability, excluding mitigation efforts, is expected to be US$25 million to US$30 million to the end of the year, Levi's chief financial and growth officer Harmit Singh said.
Revenue for the quarter ended Jun 1 rose 6 per cent to US$1.4 billion, beating the average estimate of analysts. On an annual basis, sales grew for a fifth straight quarter, while Wall Street had expected a decline.
More than half of Levi's US merchandise needs for the rest of the year have already been imported into the country, Singh added.
Earlier this year, Levi was one of the first big apparel companies to report earnings after Trump announced sweeping tariffs on Apr 2. The company's previous guidance did not factor in tariffs, but since then, a number of competitors have flagged the tariffs' impact along with general consumer caution.
American Eagle Outfitters pulled its guidance altogether, citing discounting and excess inventory among other issues, while shares of Gap plunged in late May after the company projected a tariff impact of as much as US$300 million. BLOOMBERG
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
14 minutes ago
- Straits Times
US stocks rise as Apple surges
Sign up now: Get ST's newsletters delivered to your inbox Traders working on the floor of the New York Stock Exchange, in New York City, on Aug 6. NEW YORK - Wall Street stocks rose on Aug 6 with Apple and most other large tech companies rallying as markets largely shrugged off US President Donald Trump's latest tariff hikes. Apple piled on more than 5 per cent after White House officials said the tech giant plans an additional US$100 billion (S$129 billion) in capital spending in the United States. Amazon and Google parent Alphabet were among the other large tech names that also rose. 'By standing up and publicly announcing a domestic investment with President Trump, it reduces the likelihood of Trump imposing new tariff burdens on Apple,' said FHN Financial's Chris Low. The Dow Jones Industrial Average finished up 0.2 per cent at 44,193.12. The broad-based S&P 500 gained 0.7 per cent to 6,345.06, while the tech-rich Nasdaq Composite Index climbed 1.2 per cent to 21,169.42, less than 10 points from an all-time record. Mr Trump ordered an additional 25 per cent tariff on Indian goods. The levy, which is expected to come into force in three weeks, is due to New Delhi's continued purchase of Russian oil. A new wave of Trump tariffs is due to take effect on Aug 7 on dozens of other economies. But the Aug 6 gains suggest investors are becoming more inured to the levies. 'This is a market that's fuelled by enthusiasm,' said Mr Jack Ablin, of Cresset Capital Management. 'Nothing has blown up yet. Perhaps the impact of tariffs won't be as great as investors originally feared.' Among individual companies, Disney fell 2.7 per cent as it reported around a doubling of profits to US$5.3 billion and announced a series of new deals to boost its upcoming ESPN streaming venture. But McDonald's jumped 3 per cent as it reported an 11 per cent rise in profits to US$2.3 billion. While the fast food giant returned to sales growth at US stores, it warned that low-income consumers were cutting back amid financial pressures. AFP
CNA
3 hours ago
- CNA
Zelenskiy says Russia appears more open to ceasefire, but warns against deception
KYIV: Ukrainian President Volodymyr Zelenskiy said on Wednesday (August 6) that Russia appeared "more inclined" to agree to a ceasefire, but cautioned that the details of any potential deal would be crucial and that neither Ukraine nor the United States should be misled by Moscow. His remarks followed a meeting in Moscow between Russian President Vladimir Putin and US special envoy Steve Witkoff, which US President Donald Trump described as having delivered 'great progress' – though he offered no specifics. CALL FOR LASTING PEACE "Ukraine will definitely defend its independence. We all need a lasting and reliable peace. Russia must end the war that it itself started," Zelenskiy said in a post on X following a phone call with Trump that included European allies. Trump, who has shown increasing frustration with Putin in recent weeks, has given the Russian president until Friday to advance toward peace or face tougher sanctions. A White House official confirmed that the secondary sanctions Trump had previously warned of – targeting countries that continue doing business with Russia – were still scheduled to take effect on Friday. TARIFFS ON INDIA ADD TO PRESSURE Trump signed an executive order on Wednesday (August 6) imposing an additional 25 per cent tariff on Indian goods over its purchases of Russian oil. The move is widely seen as part of a broader strategy to pressure Moscow by targeting its trade partners. 'The pressure on (Russia) works. But the main thing is that they do not deceive us in the details – neither us nor the US,' Zelenskiy said. While Ukraine has consistently called for an immediate and unconditional ceasefire, Russia, which controls about a fifth of Ukrainian territory, has rejected the proposal and continues to push forward on the eastern front.
Straits Times
4 hours ago
- Straits Times
Trump hails progress in Russia talks, White House says secondary sanctions still planned
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: U.S. President Donald Trump and Russia's President Vladimir Putin talk during the family photo session at the APEC Summit in Danang, Vietnam November 11, 2017. REUTERS/Jorge Silva/File Photo WASHINGTON - U.S. President Donald Trump on Wednesday said his special envoy Steve Witkoff had made "great progress" in his meeting with Russian President Vladimir Putin, as Washington continued its preparations to impose secondary sanctions on Friday. Trump, in a post on Truth Social, said he had briefed some European allies about Witkoff's meeting with Putin, which was focused on ending the 3-1/2-year war that began with Russia's full-scale invasion of Ukraine in February 2022. "Everyone agrees this War must come to a close, and we will work towards that in the days and weeks to come," Trump added, without providing further details. A White House official said earlier that the meeting had gone well, and Moscow was eager to continue engaging with the United States. The official said secondary sanctions that Trump has threatened against countries doing business with Russia were still expected to be implemented on Friday. No details were provided. Witkoff met Putin for around three hours on a last-minute mission to seek a breakthrough in the war. Trump has threatened sanctions on Moscow and secondary sanctions on countries that buy its oil if no moves are made to end the war in Ukraine. Trump took a key step in that direction on Wednesday when he imposed an additional 25% tariff on imports from India, citing New Delhi's continued imports of Russian oil. No similar order was signed for China, which also imports Russian oil. Top stories Swipe. Select. Stay informed. Singapore MRT track issue causes 5-hour delay; Jeffrey Siow says 'we can and will do better' Singapore ST Explains: What is a track point fault and why does it cause lengthy train disruptions? Singapore Three people taken to hospital after fire in Punggol executive condominium Singapore Elderly man found dead in SingPost Centre stairwell could have been in confused state: Coroner Singapore 81 primary schools to hold ballot for Phase 2C of Primary 1 registration Singapore S'pore and Indonesia have discussed jointly developing military training facilities: Chan Chun Sing Singapore Two workers died after being hit by flying gas cylinders in separate incidents in 2025 Sport Young Lions and distance runner Soh Rui Yong left out of SEA Games contingent The new measure raises tariffs on some Indian goods to as high as 50% — among the steepest faced by any U.S. trading partner. U.S. Treasury Secretary Scott Bessent last week warned Chinese officials that continued purchases of sanctioned Russian oil would lead to big tariffs due to legislation in Congress. The U.S. and China have been engaged in discussions about trade and tariffs, with an eye to extending a 90-day tariff truce that is due to expire on August 12, when their bilateral tariffs shoot back up to triple-digit figures. REUTERS
