Levi Strauss Warns Macroeconomic Conditions Will Hurt 2025 Results
Key Takeaways
- Levi Strauss warned that its sales for the full year will be lower because of the macro environment, possible U.S. tariffs, tax code changes, and worsening foreign exchange rates.
- The jeans maker expects sales to decline 1% to 2% from 2024 levels, and its outlook for earnings was below Visible Alpha estimates.
- The news offset the company's better-than-anticipated fourth-quarter results.
Levi Strauss (LEVI) shares slipped Thursday when the clothing maker warned that sales would fall because of difficult economic conditions and possible U.S. trade moves.
The company famous for its eponymous jeans said it expects full-year adjusted earnings per share (EPS) of $1.20 to $1.25, and revenue to fall 1% to 2% year-over-year, or $6.23 billion to $6.29 billion. Analysts surveyed by Visible Alpha were looking for adjusted EPS of $1.26 and revenue of $6.29 billion.
CFO Harmit Singh told analysts on the earnings call that "there continues to be a lot of uncertainty related to the macro environment, potential tariffs, changes in the tax code, as well as worsening foreign exchange," according to a transcript provided by AlphaSense.
The guidance offset strong fourth-quarter results. Levi Strauss reported adjusted EPS of $0.50, with revenue rising 12% to $1.84 billion. Both exceeded estimates.
Despite today's roughly 1.5% decline, shares of Levi Strauss are up about 6% over the past year.
:max_bytes(150000):strip_icc()/LEVI_2025-01-30_10-45-28-133bd029695243419d4696803bd56aa5.png)
TradingView
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10