Levi Strauss lifts outlook after Q3 profit beat; shares edge lower

Levi Strauss & Co. reported stronger-than-expected third-quarter results, but its shares slipped slightly in early trading. The denim giant posted adjusted earnings per share of $0.48, surpassing analysts' projections by $0.12, while revenue reached $1.61 billion, up 4% year-over-year. On an organic basis, revenue grew by 5%. For the upcoming fourth quarter, Levi anticipates 4% organic revenue growth and raised its full-year adjusted EPS guidance to $1.54-$1.56.

The company's President and CEO, Michelle Gass, attributed the positive outlook to its diversified portfolio and strong performance across international and wholesale businesses, as well as continued momentum in lifestyle categories. Levi attributed its operating margin rise to tariff refunds and strategic redeployment of funds, and saw E-commerce sales increase by 10%.

Analysts at Raymond James described Levi's results and outlook as "a little messy" but maintained a favorable "Outperform" rating, citing the company's long-term revenue growth driven by direct-to-consumer sales, category diversification, and international markets.