Levi Warns of Tariff Impact, Blunting Higher Sales Outlook (2)

Levi Strauss & Co. raised its full-year outlook, but warned that tariffs are starting to bite.

“We have started feeling the impact of tariffs” in the third quarter, Chief Financial Officer Harmit Singh said in an interview. Despite this, Levi’s profitability, as measured by gross margin, improved.

The company said that gross margin was bolstered by higher prices and a larger volume of sales through more profitable channels. Levi continues to expect tariffs of 30% in China, but increased its expectation to 20% for the rest of the world, up from the 10% it projected a quarter earlier.

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