Levi’s Stock Surges After-Hours On Q2 Beat And Upbeat Outlook, Lifting Retail Sentiment

The denim brand said consumer trends are strong, and people, especially women, are buying more through its self-owned stores and e-commerce site.

Levi Strauss & Co. (LEVI) raised its full-year outlook on Thursday after delivering second-quarter results that topped Wall Street expectations, fueled by strong momentum in its direct-to-consumer strategy.

The denim brand said consumer trends are strong, and people, especially women, are buying more through its self-owned stores and e-commerce site. Levi's will continue to scale its DTC offering by opening more stores, producing more clothing categories beyond jeans, and gearing its marketing toward online sales.  

Levi's shares rose nearly 7% in after-market trading. As of their last close, shares have gained 13% so far this year and currently trade near a nine-month high.

For fiscal 2025, the company now expects net revenue growth of 1% to 2%, up from its previous guidance of a decline of 1% to 2%. It sees adjusted EPS of $1.25 to $1.30, up from $1.20 to $1.25. The forecast assumes tariffs on imports from China remain at 30% and are 10% for the rest of the world.

"We're entering the second half of 2025 from a position of strength," CEO Michelle Gass said in a statement. CFO Harmit Singh said the financial performance is a result of "our laser focus on the core Levi's brand and our DTC-first (direct-to-consumer) strategy."

On Stocktwits, the retail sentiment for Levi's climbed higher in the 'extremely bullish' zone (95/100), while the message volume was 'extremely high.'

Several users posted positively about the quarterly performance, with one saying that it would drive the story to $25.

For the second quarter, the company reported a 6.6% increase in net revenue to $1.45 billion, surpassing the analyst estimate of $1.37 billion from FactSet. Net revenue from the Americas increased by 5%, while that from Europe rose by 14%. Its Asia net revenue was flat.  

DTC sales accounted for 50% of the company's overall revenue, it said.

Adjusted earnings were $0.22 per share, up from $0.16 a year earlier. Analysts had expected $0.13.

Levi's also raised its quarterly dividend by $0.01 to $0.14, payable on Aug. 8.

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