Levi Strauss raises sales guidance, says it will absorb some tariff costs for now

Core Viewpoint - Levi Strauss has raised its full-year guidance for adjusted earnings and revenue, despite facing challenges from higher tariffs due to evolving trade policies under President Trump [1][3][8]. Financial Performance - The company reported a net income of $67 million, or 17 cents per share, for the three-month period ending June 1, compared to $18 million, or 4 cents per share, a year earlier [7]. - Adjusted earnings per share were 22 cents, exceeding the expected 13 cents [9]. - Revenue reached $1.45 billion, up approximately 6% from $1.36 billion a year prior, and also surpassed the expected $1.37 billion [7][9]. Guidance and Tariff Impact - Levi's now expects full-year adjusted earnings to be between $1.25 to $1.30 per share, an increase from the previous forecast of $1.20 to $1.25 [3]. - The company anticipates tariffs will impact its business by $25 million to $30 million for the remainder of the year, translating to a 2 to 3 cents reduction in earnings per share [5]. - Full-year revenue guidance has been raised, now expecting sales to rise between 1% and 2%, compared to previous guidance of a decline of 1% to 2% [8]. Market Response - Following the earnings report, Levi's shares rose approximately 8% in extended trading [6].