Corrects paragraph 1 to say impact of tariffs on Levi's 2025 results is uncertain, not 'material'
By Savyata Mishra
April 7 (Reuters) - Levi Strauss LEVI.N on Monday said the impact from the Trump administration's tariffs on its results in fiscal 2025 is uncertain, and maintained its annual forecast for sales and profit.
Shares of the denim maker, which is shoring up margins by cutting costs and selling more full-price apparel, rose 5% in extended trading. Levi did not account for an impact to its annual forecasts from recent tariffs.
"Given that the situation is fluid and unprecedented, the (tariff) impacts are uncertain," CFO Harmit Singh said on a post-earnings call.
The comments come as a sharp shift in stance for the company, which had said in January that a diverse supply chain across 25 countries would allow it cross-source products, unlike retailers such as Nike NKE.N and Target TGT.N.
"Levi Strauss' unchanged forecast shows the sheer impossibility of planning ahead, as uncertainty surrounding Trump's tariff moves paralyzes brands," said eMarketer analyst Rachel Wolff.
Sweeping tariffs by President Donald Trump have sparked concerns over a global downturn and sharp price hikes for items such as clothing and footwear.
Levi imports only about 1% of its merchandise directly from China into the U.S., while that for Mexico was about 5%, its executives said in January.
The retailer is looking at price increases as one of the mitigating measures, said CEO Michelle Gass, adding that price increases will be "surgical."
It has seen demand for wide-legged and skinny jeans hold up — a trend in line with rivals such as Abercrombie & Fitch ANF.N and Gap GAP.N — despite shoppers being selective in spending on discretionary items.
As part of its plan to streamline operations, Levi said last October it was exploring a sale of Dockers, which has seen demand struggle.
The company expects fiscal 2025 net revenue to be down in the range of 1% and 2%.
On an adjusted basis, it earned a profit of 38 cents per share in the quarter, compared to estimates of 28 cents.
(Reporting by Savyata Mishra in Bengaluru and Anuja Bharat Mistry; Editing by Alan Barona)
((AnujaBharat.Mistry@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.