President Donald Trump’s tariffs could make an American fashion classic more expensive in the United States: Levi’s jeans.
The boss of Levi Strauss, Michelle Gass, did not rule out price increases in response to the additional import duties for goods from manufacturer countries. But one will proceed selectively – “very surgical”, as Gass put it. The attractiveness of the brand opened space for higher prices, she was convinced in a telephone conference with analyst: on the inside.
Levi’s jeans would be produced in 28 countries and delivered to the USA from 20 of them, said Gass. According to the company, around one percent of China, about five percent from Mexico and a “medium to high” single -digit percentage share from Vietnam come from the home market. Trump had ordered tariffs of 46 percent for goods from Vietnam and 25 percent for imports from Mexico. For imports from China, the customs pollution is now more than 60 percent – and Trump threatened to hit another 50 percent on Monday.
Levi Strauss has a working group that plays through different scenarios in response to tariffs, said Gass. She is currently trying to make Levi Strauss more profitable.
“In the first quarter we exceeded expectations regarding sales and profitability and have started the new year. This is a further evidence that our transformation strategy applies,” explained Michelle Gass, President and CEO of Levi Strauss & Co. Margen structure and our flexible supply chain to successfully master the current financial year and the future. ”
In the past quarter, the company from San Francisco made a profit of $ 135 million-according to red figures of $ 10.6 million a year earlier. Sales rose by three percent to almost $ 1.53 billion. Levi Strauss generated a little more than half of it in the USA.
Levi’s proves resistance
In the first quarter, Levi’s demonstrated his resistance to persistent economic uncertainty and increasing customs pressure. In addition, the company held on to its sales growth forecast for the overall year.
In the reporting period, the Levi’s brand recorded an eight percent increase in sales worldwide. The Beyond Yoga brand’s net turnover even increased by ten percent. Regional, net sales in America increased by six percent, in the United States by eight percent. In Europe, on the other hand, sales decreased by five percent, while he was increasing seven percent in Asia.
In the direct-to-consumer segment, net sales increased by nine percent, with e-commerce business achieving growth of 13 percent. However, sales in the wholesale business fell by three percent.
Levi Strauss & Co. confirmed his outlook for the overall year and confirmed an expected increase in sales of 3.5 to 4 percent and a diluted profit per share in the range of $ 1.20 to $ 1.25. (dpa/fashionunited)
This article was updated on April 8, 2025 at 9.45 a.m.