Jan 28 (Reuters) - Levi Strauss beat Wall Street estimates for fourth-quarter sales and profit on Wednesday, buoyed by strong demand for its wide-leg denim jeans despite pressure from higher U.S. import tariffs and dampened consumer spending in the country.
The denim maker has benefited from strong demand for baggy, loose-fit apparel - particularly among Gen Z and younger millennial shoppers - while also leaning into full-price sales through its direct-to-consumer channel and doubling down on its popular
product offerings.
Levi, which expects a hit from U.S. President Donald Trump's shifting tariff policies, in October said it had secured a bulk of its holiday inventory ahead of schedule and was raising prices modestly to ease the margin pressure.
It has exited lower-margin businesses such as Denizen and Dockers in North America over the past year, sharpening its focus on the core brand and growing its Beyond Yoga brand.
The retailer reported a 1% rise in net revenue to $1.77 billion for the quarter ended November 30, ahead of the average of analysts' estimates of $1.71 billion, according to data compiled by LSEG.
Net revenues in Europe rose 8%, while those in the Americas segment fell 4% as consumer spending in the U.S. remains pressured by inflation and macroeconomic uncertainty. Beyond Yoga's revenue increased 37%.
The company posted an adjusted profit per share of 41 cents, beating analysts' estimates of 39 cents per share.
Levi expects fiscal year 2026 reported net revenue growth from continuing operations in the range of 5% to 6%, compared with analysts' average estimate of a 5.4% rise. It expects annual adjusted earnings per share in the range of $1.40 to $1.46, below analysts' average estimate of $1.48.
(Reporting by Koyena Das and Neil J Kanatt in Bengaluru; Editing by Leroy Leo)
