Levi's executives provided a glimpse of what to expect for the upcoming earnings season amid concerns over damaging tariffs, causing uncertainty and a lack of clear guidance for investors seeking clarity.

Due to the unpredictable nature of the situation, Levi's CFO Harmit Singh mentioned on a recent earnings call that the impacts of the tariffs are uncertain. The company is currently engaging in scenario planning and exploring different strategies to mitigate potential consequences. Despite the evolving macro environment, Levi's maintains its full-year outlook unchanged for now, with no projected impact from the proposed tariffs.

CEO Michelle Gass stated that Levi's has established an internal task force to assess the impact of tariffs and potential responses, including price adjustments. The company heavily relies on production facilities in China and Vietnam, countries subject to significant tariffs as announced by President Trump.

While Levi's shares surged over 8% after-hours following a successful earnings report, uncertainties linger regarding the sustainability of this rally. With escalating tariffs set by the Trump administration, particularly affecting key sourcing regions of major US retailers like Levi's, the outlook remains challenging. The threat of additional tariffs and the complex supply chain dynamics in Asia pose profitability concerns, leading analysts to foresee limited investor interest in the sector until there is greater visibility.