Levi Strauss lifts annual forecast on denim demand

Investing.com -- Levi Strauss & Co raised its full-year revenue and profit forecast as it reported a strong quarterly result, helped by solid demand for its denim and direct-to-consumer sales growth.

Company reported third-quarter earnings of 34 cents per share, beating analysts’ average estimate of 30 cents per share. Revenue rose to $1.54 billion from $1.50 billion a year earlier, also above expectations of $1.5 billion.

Levi now expects fiscal 2025 adjusted earnings of $1.27 to $1.32 per share, compared with its prior view of $1.25 to $1.30.

The company raised its outlook for reported net revenue growth to about 3% from a prior range of 1% to 2%, and organic growth to roughly 6% from 4.5% to 5.5%.

Shares of Levi fell 4.6% in extended trading. Analysts at Barclays and BofA were expecting a guidance raise

Gross margin is projected to expand by 100 basis points this year, up from its earlier forecast of 80 basis points, while adjusted EBIT margin is expected to stay between 11.4% and 11.6%.

Chief Executive Michelle Gass said Levi’s focus on becoming a “DTC-first, head-to-toe denim lifestyle retailer” was driving a “meaningful inflection” in its performance and positioning it well for the holiday season despite a “complex” macro backdrop.

The company said its results reflected broad-based strength across channels and categories, including continued traction with younger shoppers and rising full-price sales in its own stores.

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