Shares of Levi Strauss (LEVI) rallied over 10% in premarket trading after the company reiterated its full-year outlook, which included no impact from tariffs. The denim maker also posted better-than-expected earnings and said demand was strong in March.
But on a more confusing note, Levi’s CFO Harmit Singh stated this on tariffs: “Given that the situation is fluid and unprecedented, the impacts are uncertain. We are in the process of scenario planning and determining different mitigation strategies. We recognize this is a quickly evolving macro situation and we have to see where the dust settles to give you the guidance that is going to be as helpful to you as possible.”
As Yahoo Finance’s Brian Sozzi noted, the company relies on 130 facilities in China and 50 in Vietnam — two countries Trump earmarked for large tariffs — to produce its various apparel offerings.
Levi’s CEO Michelle Gass said the company has assembled an internal “task force” to determine the tariff impact and proper responses, such as price increases, Sozzi wrote.