Shares of Levi Strauss leapt more than 7% in pre-market trading on Friday after the denim giant upgraded its annual revenue and profit forecasts, buoyed by robust demand in stores and online.
The company’s consumer-centric strategy and renewed focus on core “denim lifestyle” offerings helped deliver strong second-quarter results, impressing analysts and lifting investor confidence.
International sales — which now make up 60% of Levi’s revenue — rose 10%, driven largely by Europe, while US sales climbed 7%.
The growing popularity of its women’s collection, including denim dresses and skirts, and the success of the “Beyond Yoga” brand have further fuelled momentum, particularly among younger shoppers.
While Levi’s is mitigating the impact of current US tariffs through supply chain diversification to countries like Bangladesh and Cambodia, the company’s projections don’t yet reflect new 35–36% tariffs set to hit those markets from 1 August.
Trading at a price-to-earnings ratio of 14.92, Levi’s remains attractively valued compared to peers like Ralph Lauren and Abercrombie & Fitch — suggesting investors still see room to grow.