Levi Strauss beats Q3 estimates, raises full-year profit outlook
Levi Strauss reported adjusted fiscal third-quarter earnings of 48 cents a share on $1.61 billion in revenue, topping profit expectations but missing on sales. The company also raised its full-year adjusted earnings and organic revenue outlooks, saying tariff refunds helped profit.
By Evie Liu Levi Strauss posted better-than-expected quarterly earnings Wednesday and raised its full-year profit outlook, though a sizable portion of the earnings growth came from refunds on previously paid tariffs. For its fiscal third quarter ended Aug. 30, the denim maker reported adjusted earnings of 48 cents a share, up 41% from a year earlier and well above Wall Street expectations for 36 cents. 62 billion.
But a big part of the profit growth came from tariff refunds. The company said it used five cents of those benefits for additional investment in the business, leaving a net earnings benefit of 11 cents a share. Excluding the net tariff-refund benefit, adjusted earnings would have been roughly 37 cents a share -- still above last year's 34 cents, but marking a more modest growth and around Wall Street's expectations. Levi's sales momentum slowed broadly in the latest quarter, with overall revenue growth easing to 4% from 8% in the previous quarter.
Still, its women's business remains a bright spot, benefiting from demand for baggy jeans and the company's push beyond denim into categories such as tops, skirts, and dresses. 5% to 6%. 52. The new forecast includes the benefit from tariff refunds, though the company plans to spend part of it on additional investments.
Levi shares have fallen sharply from their summer highs. 51, down 24% from its late-July peak. Shares were down more than 2% in after-hours trading following the earnings report. com This content was created by Barron's, which is operated by Dow Jones & Co.
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