Levi Strauss lifts profit forecast after tariff refunds, trims sales outlook

Levi Strauss raised its full-year profit forecast on October 7 on the strength of tariff refunds, while narrowing its revenue outlook to the low end of its earlier range, CNBC reported.

The jeans maker now expects adjusted earnings of $1.54 to $1.56 a share, up from a prior range of $1.46 to $1.52. Analysts surveyed by LSEG had looked for $1.52 to $1.59. The company set full-year net revenue growth at 7%, the floor of its earlier 7% to 7.5% forecast. The stock was little changed in extended trading.

In the quarter that closed on August 30, sales climbed about 4% to $1.61 billion. Profit fell to $168.6 million, or 43 cents a share, from $218.1 million, or 55 cents, a year earlier. Operating margin widened to 13.8% from 10.8%, with tariff refunds accounting for 4.9 percentage points and adding 16 cents to per-share earnings. Five of those cents were put back into the business, and chief executive Michelle Gass told analysts the money would support holiday marketing and promotions.

Direct-to-consumer revenue rose 2% and made up 45% of the total, while wholesale grew 6%. Gass said the direct business "fell short of our expectations."

John Vandemore becomes chief financial officer on November 1, succeeding Harmit Singh.

This story was first reported by CNBC.