Levi Strauss & Co (LEVI) shares surged 6.23% in after-hours trading on Thursday following the company's impressive second-quarter results and raised full-year guidance, demonstrating resilience in the face of ongoing tariff uncertainties. The denim maker reported adjusted earnings per share of $0.22, significantly beating analysts' expectations of $0.13, while revenue rose 6% year-over-year to $1.45 billion, surpassing estimates of $1.37 billion.

The company's strong performance was driven by several factors, including robust growth in Europe, where net revenue increased by 14% on a reported basis. The direct-to-consumer segment also showed impressive results, with revenue climbing 11%. Levi's efforts to diversify its product offerings beyond traditional jeans, introducing new styles and collections such as dresses, skirts, and wide-legged jeans, have helped the company navigate challenging market conditions and subdued consumer spending.

Despite ongoing concerns about the impact of tariffs, Levi Strauss raised its fiscal 2025 outlook. The company now expects annual revenue growth of 1% to 2%, a significant improvement from its previous forecast of a 1% to 2% decline. Additionally, it increased its annual adjusted earnings per share guidance to between $1.25 and $1.30, up from $1.20 to $1.25 previously. This positive revision comes even as the company factors in the potential impact of tariffs, with CFO Harmit Singh stating that they expect tariffs to affect profitability by $25 million to $30 million for the rest of the year. To mitigate these effects, Levi's is leveraging its diverse sourcing network and implementing strategies such as negotiating with vendors and selectively raising prices.