Levi Strauss Stock Jumps as Jeans Maker Sees ‘Minimal Impact’ of Tariffs

Shares of Levi Strauss (LEVI) soared 13% in premarket trading Tuesday, a day after the denim giant reported better-than-expected first-quarter profit and gave a relatively upbeat outlook on the Trump administration’s new tariffs.

After the bell Monday, Levi’s reported quarterly adjusted earnings per share (EPS) of $0.38, above the $0.28 consensus forecast of analysts polled by Visible Alpha. The company generated $1.53 billion in revenue, in line with estimates.

Its Dockers business now is classified as “discontinued operations,” as Levi’s made the decision during the first quarter to pursue a sale of the brand after launching a review in October.

Pricing Adjustments Due to Tariffs Would Be ‘Surgical’

Levi’s CFO Harmit Singh said on Monday’s earnings call that the company expects “minimal impact” from tariffs on its second-quarter profit margins, as much of its inventory has already been imported. Singh said the tariffs could be a “significant challenge” later this year, but he and CEO Michelle Gass said they are “fluid” and could change, according to a transcript from AlphaSense.

Gass said any pricing adjustments due to the tariffs will be “surgical.” The company imports products from 20 countries into the U.S., and Gass said Levi’s has created a “task force” to evaluate ways to minimize the potential impacts of tariffs.

In a note following the earnings, JPMorgan analysts upgraded Levi’s stock to “overweight” from “neutral,” while also trimming the stock’s price target to $17 from $19. The analysts cut their price target because they believe tariffs will likely hurt profits this year, but said Levi’s should be able to mitigate an estimated 75% of the cost because of changes to its business since tariffs played a role in the first Trump administration.