Levi Strauss (NYSE: LEVI) stock jumped over 10% in pre-market trading Tuesday after reporting stronger-than-expected first-quarter earnings, driven by margin improvements from full-price selling and cost efficiencies, even as revenue came in just below forecasts.
For the fiscal first quarter, the apparel company posted adjusted earnings per share of $0.38, handily beating the consensus estimate of $0.28. Revenue totaled $1.53 billion, slightly shy of the $1.54 billion projected by analysts.
Reported net revenue rose 3% year-over-year, with organic growth reaching 9%. The Levi’s brand continued to show strong momentum, delivering 8% global organic growth—highlighting the ongoing success of the company’s transformation efforts.
Levi Strauss (NYSE: LEVI) maintained its full-year 2025 guidance, expecting adjusted EPS between $1.20 and $1.25. The outlook includes roughly $0.20 of foreign exchange headwinds and a higher tax rate but excludes any potential impact from recently proposed tariffs.
Margins improved significantly during the quarter. Gross margin expanded by 330 basis points to 62.1%, supported by lower product costs and a more favorable channel and product mix. The adjusted EBIT margin increased by 400 basis points to 13.4%.
The strong profitability helped offset concerns over the slight revenue shortfall and macro uncertainty, particularly around tariffs, as investors responded positively to the results and strategic progress.
