# Levi Strauss Posts Mixed Q3 Results as Tariff Refunds Boost Earnings

- URL: https://stocks.freetheai.org/news/levi-strauss-posts-mixed-q3-results-as-tariff-refunds-boost-earnings-f7b77c
- Published: 2026-10-08T13:47:45Z
- Category: earnings; sentiment: mixed; impact: medium
- Symbols: [NYSE:LEVI](https://stocks.freetheai.org/symbols/NYSE-LEVI)
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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.

## Key points

- Levi Strauss & Co. (LEVI) reported third-quarter earnings per share of $0.48, beating the $0.36 expected by analysts.
- Quarterly revenue reached $1.61 billion, up 4% year-over-year but slightly below Wall Street estimates of $1.62 billion.
- U.S. government tariff refunds provided a $0.16 per share boost to earnings and lifted operating margins to 13.8%.
- The company lowered its full-year revenue growth guidance to 7% due to soft sales and a 1% revenue drop in the U.S. market.
- Full-year earnings expectations were raised to a range of $1.54 to $1.56 per share.

## Questions and answers

### Why did Levi Strauss beat its Q3 earnings expectations?

The company's earnings were boosted by tariff refunds from the U.S. government, which contributed $0.16 per share to profits.

### Why did Levi Strauss lower its sales growth outlook?

Levi Strauss lowered its full-year revenue growth guidance to 7% due to soft sales in the U.S. market, where quarterly revenue decreased by 1%.