Jeans brand Levi's is up 8% on strong earnings — despite a profit hit from tariffs

Levi's posted strong second-quarter earnings.Cheng Xin/Getty ImagesThe stock price of jeans brand Levi's jumped 6% after it reported strong earnings in the latest quarter.Levi's saw a 6% revenue increase in the latest quarter compared to the year before.However, it anticipates a hit of up to $30 million this year because of Trump's tariffs.Levi Strauss had a good second quarter, even with tariffs setting in.On Thursday, the jeans brand reported a 6% increase in net revenues in the latest quarter compared to the year before, with sales of $1.4 billion.Its bright spot, in particular, was Europe, which saw a 14% increase in net sales compared to the year before. The company's stock was up about 6% in after-hours trading on Thursday.Michelle Gass, the company's CEO, said in Thursday's earnings call that Levi's sold its Dockers brand, launched phase three of its Beyoncé campaign, and expanded its tops and outerwear lines last quarter.Levi's launched the third phase of its collaboration with Beyoncé in the latest quarter.Michael Blackshire / Los Angeles Times via Getty ImagesLevi's strong performance came as President Donald Trump's tariffs took effect in the latest quarter. Finance chief Harmit Singh said in the call that he estimated a $25 to $30 million profit hit from the tariffs for the rest of the year."We are competitively positioned, better than most, as it relates to tariffs. Number one, 60% of our business is international now," Gass told CNBC in a post-earnings interview on Thursday."But our exposure to China is really minimal. And then I would say the team is doing a great job across multiple levers to mitigate," Gass added to CNBC.Gass said in an earnings call in April that Levi's has manufacturers in 28 countries, 20 of which supply products to the US.This month, President Donald Trump announced a slew of tariffs for trading partners, including a 50% tariff on goods from Brazil and a 20% tariff rate for goods from Vietnam.Gass said on the April earnings call that the tariff situation was "fluid," and the brand would be judicious in deciding pricing changes."As we look at pricing, we do believe that the brand, especially given the health of the brand, that there is pricing power there," she said to investors. "But if we do anything, it will be very surgical."Representatives for Levi did not respond to a request for comment from Business Insider.Read the original article on Business Insider

Comments

Business News

BP says oil and gas production to rise after renewing focus on fossil fuels

Independent

In our 50s, we moved to a remote Pacific island. We know we'll need better healthcare someday, but for now, it's paradise.

about 10 hours ago

Tesla makes moves to expand robotaxis in the Bay Area and Phoenix

insider

Comments

Similar News

Levi's 501 jeans loved by Kendall Jenner and Hailey Bieber are slashed to £40 from £100

‘I wore “pyjama jeans” from a Taylor Swift-approved brand and I can’t go back to normal denim’

Business News

BP says oil and gas production to rise after renewing focus on fossil fuels

Reeves pauses cash ISA changes after backlash

The best bank accounts for new students

'Ticking tax timebomb' warning as UK economy shrinks 0.1% in May in fresh blow to Rachel Reeves

BP says oil and gas production to rise after renewing focus on fossil fuels

Blow to Chancellor as UK economy shrank unexpectedly in May

Union sets date for Glasgow Airport strike action this month

UK exports to US returned to growth in May as trade deal cut some key tariffs

Heathrow unveils plans to add up to 10 million passengers by 2031

UK exports to US returned to growth in May as trade deal cut some key tariffs

Blow to Chancellor as UK economy shrank unexpectedly in May

Asian shares are mixed after Wall Street closes higher and edges to more records

Albanese will meet with Xi next week on a trip focused on Australia-China business ties

Trump plans to hike tariffs on Canadian goods to 35%

Do you have ‘money dysmorphia’? How to recognise and overcome it

Christine Lampard’s ‘stunning’ white midi dress was designed by Michelle Keegan

'This SPF makes it look like you're wearing makeup and it's only £5.49 on Prime Day'

FTSE 100 Live 11 July: GDP below forecast, index to hold record position

UK economy shrinks unexpectedly in May – ONS

Heathrow unveils plans to add up to 10 million passengers by 2031

UK economy shrinks for second month in a row after unexpected slump in May

BP says oil and gas production to rise after renewing focus on fossil fuels

UK economy shrinks unexpectedly in May – ONS

Business news live: More lenders join sub-4% mortgage fight and government warned over AstraZeneca

UK economy unexpectedly shrinks for second month in a row

Trump plans to hit Canada with 35% tariff - while warning of blanket hike for other countries

Govt to announce new scheme as it ramps up AI adoption with backing from Meta

'I've tested over 10 different SPFs - this is the only one I'd buy on Prime Day'

FTSE 100 dividend growth continues to dry up amid buyback boom

Omodo 9 SHS plug-in hybrid review: We drive it through nine countries to test its 700-mile range claims

We've exchanged on our house sale - but now the buyer wants 10% off

Six tricks to turbocharge your Boots Advantage card points

How to avoid a payment fees sting while on holiday

Julia Louis-Dreyfus told Michelle Obama the secret to getting your adult kids to come home

Google Brain founder Andrew Ng says AGI is overhyped

Jeans brand Levi's is up 8% on strong earnings &mdash; despite a profit hit from tariffs

'Superman' is silly, heartfelt, and shows the new DC Universe can easily rival Marvel

He closed his store after years of threats. Why Mexico's extortion problem is getting worse

Rubio to meet China's foreign minister in Malaysia as US-Chinese tensions mount

Eczema sufferers save £27 on travel set that features derm-approved 'skin salvation' balm

'I ate at McDonald's in India and was surprised by alternative to Big Mac'

Michael Dell said Meta's AI hiring spree could raise questions of fairness among employees

Perplexity AI Teams With Coinbase To Boost Crypto Intelligence

Trump Says He Will Impose 35% Tariff On Canada—Blames ‘Flow Of Fentanyl’ And ‘Trade Barriers’

Cooper Flagg Struggles In NBA Summer League Debut

Today’s NYT Mini Crossword Clues And Answers For Friday, July 11th

How Luggage Maker Eagle Creek Has Survived Trump’s Trade War. So Far.

The Mystery of Trump’s 25% Tariff Threat on Kazakhstan

Here Are The All Star Home Run Derby Participants

Kendra Bulluck-Major Is Building An Empire With Legacy Sports

Trump threatens 35% tariffs on Canadian goods

In our 50s, we moved to a remote Pacific island. We know we'll need better healthcare someday, but for now, it's paradise.

Tesla makes moves to expand robotaxis in the Bay Area and Phoenix

Bitcoin Hits Record High Ahead Of ‘Crypto Week’

How 'Jaws' Redefined Movie Tech And Ocean Awareness

‘Dexter: Resurrection’ 100% Rotten Tomatoes Critics Score Sets Record For Franchise

June heat and thunderstorms spell tough month for high street

Vital investment in Heathrow is a gateway for growth for the whole of the UK

June heat and thunderstorms spell tough month for high street

Tennis legends Andy Roddick, Martina Navratilova sneer at Bill Ackman for playing in pro match: ‘The biggest joke’

Jeans brand Levi's is up 8% on strong earnings — despite a profit hit from tariffs