Shares of Levi Strauss & Co (LEVI) surged 7.48% in after-hours trading on Monday following the company's release of better-than-expected first-quarter 2025 financial results and maintained full-year guidance, despite looming concerns over recent tariff announcements.

The iconic denim maker reported adjusted earnings per share of $0.38 for the quarter ended March 2, significantly beating the analyst consensus estimate of $0.28. Revenue came in at $1.53 billion, slightly below the $1.54 billion expected but up 3% year-over-year on a reported basis and 9% on an organic basis.

Levi's maintained its fiscal 2025 guidance, projecting organic net revenue growth of 3.5% to 4.5% and adjusted earnings per share between $1.20 and $1.25. The company noted that this outlook does not reflect any impact from recently announced tariffs, but Chief Financial Officer Harmit Singh stated they anticipate "minimal impact" to second-quarter margin outlook from the tariffs.

Investors were particularly impressed by Levi's strong performance in key areas, including a 6% increase in Americas net revenues on a reported basis (11% organically) and a 9% rise in Direct-to-Consumer net revenues (12% organically). Additionally, gross margin expanded 330 basis points to 62.1%, driven by lower product costs and favorable channel and brand mix.

While Levi's results and maintained outlook drove the after-hours stock surge, the company faces uncertainties related to the broader economic environment and potential impacts from new tariffs. Management emphasized their ability to navigate these challenges, citing the company's global presence, strong margin structure, and operational agility.