Levi Strauss exceeded first-quarter profit expectations through increased sales of full-priced bottom wears and cost-saving measures, resulting in improved profit margins. Despite a decline in shares by approximately 22% this year, Levi's stock rose by 2% in after-hours trading as the company maintained its sales and profit forecasts for the year. These forecasts do not include any potential impact from recent tariff announcements.

Despite consumer caution in discretionary spending, Levi Strauss has sustained demand for both wide-legged and skinny jeans, aligning with similar trends observed at competitors like Abercrombie & Fitch and Gap. Leveraging a diverse supply chain with sources from more than 25 countries, Levi has managed to mitigate tariff-related risks that have affected other retailers in the footwear and apparel industry.

Industry analysts, such as Rachel Wolff from eMarketer, praise Levi's strategic celebrity collaborations, marketing initiatives, and robust product lineup, which have helped attract customers amidst economic uncertainties. Gross margins increased to 62.1% in the first quarter due to lower production costs and a strong direct-to-consumer channel.

As part of its operational streamlining strategy, Levi announced intentions to potentially divest its struggling Dockers brand, aiming for a sale by 2025. Adjusted quarterly earnings reached 38 cents per share, surpassing estimates of 28 cents. Revenue from continuing operations rose by 3% to $1.53 billion, excluding Dockers sales that are now categorized as a discontinued operation.

Analysts had predicted a 1% revenue decline to $1.54 billion, including Dockers sales, according to data compiled by LSEG.