By Connor Hart
Levi Strauss & Co. raised its fiscal-year outlook after posting higher sales in the third quarter, as the company's focus on its direct-to-consumer business gained traction among consumers.
The apparel company said Thursday it now expects annual revenue to rise 3%, after previously guiding for a 1% to 2% increase. It also lifted its adjusted earnings forecast to $1.27 to $1.32 a share, from $1.25 to $1.30 a share.
Analysts polled by FactSet projected annual revenue to grow approximately 2%, and for adjusted earnings of $1.31 a share.
Chief Executive Michelle Gass said efforts to improve Levi's direct-to-consumer business and invest in its namesake denim brand are working, and the company is well-positioned for the holiday season despite a complex macro environment.
The improved outlook comes as the jean maker posted a profit of $218.1 million, or 55 cents a share, for its three months ended Aug. 31, up from $20.7 million, or 5 cents a share, a year earlier. Stripping out one-time items, adjusted per-share earnings were 34 cents, ahead of the 31 cents that Wall Street modeled.
Earnings from continued operations, which excludes its Dockers business that is being sold, were 31 cents a share. The company said favorable mix and higher prices helped increase margins and offset tariffs.
Revenue increased 7%, to $1.54 billion, ahead of the $1.5 billion that analysts expected, according to FactSet. Direct-to-consumer sales grew 11%, while wholesale revenues rose 3%.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
October 09, 2025 16:18 ET (20:18 GMT)
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