By Sabrina Escobar

Levi-Strauss topped second-quarter earnings expectations and raised guidance for the fiscal year, sending the stock surging in after-hour trading Thursday.

The apparel retailer reported adjusted earnings of 22 cents a share for the quarter ended June 1, ahead of analysts' expectations for 13 cents, according to FactSet. Gross margins expanded 1.4 percentage points to a record 62.6%, Levi's said, driven by lower product costs.

Revenue rose 6% from last year to $1.45 billion, compared with Street estimates for $1.37 billion.

Levi's also raised guidance for the fiscal year. Adjusted earnings per share are expected to be between $1.25 and $1.30, higher than an earlier forecast for a range of $1.20 to $1.25. Analysts were forecasting $1.23 a share.

Net revenue should grow between 1% and 2% from the prior year, better than previous guidance for revenue to decrease between 1% and 2% year over year. Analysts were forecasting revenue would decrease by 5% from last year.

The new outlook factors in current tariff rates, assuming imports from China get penalized at a 30% rate and merchandise brought in from other countries receive a 10% levy.

Levi's stock was up 7.7% to $21.25 in after-hour trading Thursday. Shares have gained 14% this year.

"Given our strong H1 and continued momentum across the business -- and despite higher tariffs -- we are raising our full-year revenue and EPS expectations," said Harmit Singh, Levi's chief financial officer.

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July 10, 2025 16:31 ET (20:31 GMT)

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