Levi Strauss raises profit guidance on tariff refunds

Levi Strauss & Co. has raised its adjusted earnings per share (EPS) guidance for the fiscal year to a range of $1.54 to $1.56, up from the previous projection of $1.46 to $1.52. This upward revision is primarily attributed to tariff refunds, which provided a 16-cent benefit to EPS and contributed significantly to operating and gross margins.

Despite the increased profit outlook, the company tempered its revenue projections. Net revenue growth guidance for the full year was lowered to 7%, the lower end of its previous 7% to 7.5% range. For the third quarter, the company reported net revenues of approximately $1.61 billion, a 4% increase compared to the prior year. While international and wholesale segments showed growth, direct-to-consumer (DTC) performance fell below internal expectations.

To support future growth, management plans to reinvest a portion of the tariff benefits into marketing and promotional activities for the holiday season. Additionally, the company announced plans to initiate a $100 million accelerated share repurchase program.