Levi Strauss & Co (NYSE:LEVI) shares pulled back premarket as concerns about the impact of the costs of tariffs on the jeans-maker overshadowed better-than-expected third quarter earnings.
For Q3, revenue of $1.54 billion topped estimates of $1.5 billion, up 7% from the year-ago quarter.
Direct-to-consumer revenues were up 11% on a reported basis, while wholesale net revenues were up 3% on a reported basis.
Adjusted earnings per share were $0.34, above the $0.31 consensus.
The company raised its full-year adjusted EPS guidance to a range of $1.27 to $1.32, at the midpoint below the Wall Street consensus of $1.31, reflecting challenges from tariff-related costs and the macroeconomic environment.
It also lifted its sales outlook, now projecting full-year revenue growth of 3%, up from its earlier range of 1% to 2%.
“We delivered another very strong quarter as our pivot to becoming a DTC-first, head-to-toe denim lifestyle retailer is driving a meaningful inflection in our financial performance,” Levi’s CEO Michelle Gass said in a statement.
“While the macro environment remains complex, the consistency of our performance and operational agility gives me confidence that we will deliver sustained, profitable growth into 2026 and beyond.”
Shares of Levi’s traded down 9.6% at about $22 before the opening bell in New York.