Levi’s surges as the jean maker shrugs off tariffs with strong earnings and boosted guidance
As the broad market wobbles a little on renewed tariff threats, Levi’s is taking a denim-clad leg higher.
Shares of the jean maker are surging after it reported better-than-expected quarterly results and boosted its full-year earnings guidance. That’s prompting Bank of America to boost its price target on the stock from $21 to $24 while upgrading its profit estimates.
“We think LEVI is still in the early innings of a positive EPS revision cycle and see a combination of mid-single digits sales growth and margin expansion ahead,” analyst Christopher Nardone wrote. “We are encouraged that the beats to gross margin can continue (similar to 1H25 results) as long as the tariff environment doesn’t materially worsen from here (a big question mark).”
That being said, Levi’s guidance assumes tariffs on Chinese imports stay at 30% while the rest of the world is tariffed at a 10% rate. Needless to say, that situation remains fluid.
