Levi Strauss Posts Mixed Q3 Results as Tariff Refunds Boost Earnings

Apparel manufacturer Levi Strauss & Co. (LEVI) delivered a mixed performance in its third quarter, exceeding profit forecasts but falling short on sales. The denim maker recorded earnings per share of $0.48, which came in well ahead of the $0.36 expected by analysts. On the other hand, quarterly revenue reached $1.61 billion, representing a 4% increase year-over-year but missing the Wall Street projection of $1.62 billion.

The profit beat was heavily supported by tariff refunds from the U.S. government, which contributed a $0.16 per share boost and helped lift the quarterly operating margin to 13.8% from 10.8% a year earlier. Despite this financial cushion, underlying consumer demand showed signs of slowdown. Direct-to-consumer sales grew by just 2%, comparable sales were flat, and revenue in the key domestic market fell by 1% due to soft demand.

Looking forward, the company raised its full-year earnings outlook to a range of $1.54 to $1.56 per share, up from its prior estimate of $1.46 to $1.52. However, it lowered its full-year revenue growth expectations to 7%, representing the bottom end of its previous 7% to 7.5% range. Investors will likely watch whether the retailer can stabilize its U.S. sales as the temporary tariff benefits clear out.