Levi Strauss surprises with forecast increase – but the stock plunges

The jeans manufacturer Levi Strauss & Co. has raised its annual forecast - and is being penalized on the stock exchange for it. Despite robust demand for loose-fitting jeans and stable margins, the stock of the traditional US company lost around seven percent in after-hours trading on Thursday evening.

10/11/2025, 4:01 PM
Eulerpool News Oct 11, 2025, 4:01 PM

Sales and profit targets rise slightly

For the 2025 fiscal year, Levi Strauss now expects organic sales growth of around six percent, after previously forecasting an increase of 4.5 to 5.5 percent. The management is also more optimistic about the adjusted earnings per share: The range has been raised to 1.27 to 1.32 US dollars, previously it was between 1.25 and 1.30 dollars.

However, the forecast is only slightly above analysts' expectations, who, according to LSEG data, expect an average of $1.31 per share - a possible reason for the disappointing market reaction.

Strong Demand, but High Expectations

The business with wide jeans and streetwear remains a growth driver for Levi's, especially in North America and Europe. However, investors had apparently hoped for a clearer increase in the forecast - especially after the strong figures from the competition. The price reaction shows: Even good news is currently not enough when the market expects more.

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