Newscasts - Levi Strauss slips as tariff-related costs overshadow forecast hike
10/10/2025 20:30
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_602ftmwy&referenceId=tag:reuters.com,2025:newsml_RW254310102025RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: Levi Strauss & Co shares unraveled on Friday morning as investors focused on the denim maker's warning of a tariff-related hit to its fourth-quarter margin, overlooking a higher annual profit forecast. Alex Cohen has more. Short Link: https://lseg.group/3L36ZIy Video Transcript: Shares of Levi Straus fell as much as 14% Friday morning after the denim maker warned of a tariff-related hit to its fourth quarter margin. The company sources the bulk of its products from South Asia, including Bangladesh, Cambodia, and Pakistan, countries that face high tariffs as a result of new trade policy implemented under US President Donald Trump. The warning of higher costs from tariffs overshadowed the company raising its full-year sales and profit forecast. Levi's has capitalized on the resurgence of baggy, loose fit apparel among Gen Z customers. Still, one analyst told Reuters that while management called the growing expenses transitory, the "concern is that Levi's has struggled to show an ability to scale expenses for three to five years now." Another analyst said Levi's was being conservative with its outlook, despite the company not seeing any adverse changes in shopping trends in September. Executives said on an earnings call that Levi's has secured about 70% of its holiday inventory early and slightly raised prices to mitigate tariff impact and prepare for the holiday quarter. It has also broadened its product offerings, leaned into full price sales, and kept a tight leash on inventory to offset weaker consumer sentiment and tariff-related pressures.