Levi's execs on Trump tariffs: We can’t estimate the impact yet for investors

Levi's (LEVI) execs conscionable gave a marketplace tense implicit bruising tariffs a sensation of what's to travel for net season.

A dense dose of confusion, with a deficiency of wide chopped guidance for investors successful hunt of severely needed clarity.

"Given that the concern is fluid and unprecedented, the impacts are uncertain. We are successful the process of script readying and determining antithetic mitigation strategies. We admit this is simply a rapidly evolving macro concern and we person to spot wherever the particulate settles to springiness you the guidance that is going to beryllium arsenic adjuvant to you arsenic possible,” Levi's long-time CFO Harmit Singh said connected a precocious Monday net call.

“For now, our full-year outlook remains unchanged and includes nary interaction from the projected tariffs."

Levi's CEO Michelle Gass said the institution has assembled an interior "task force" to find the tariff interaction and due responses, specified arsenic terms increases.

The institution relies connected 130 facilities successful China and 50 successful Vietnam — 2 countries Trump earmarked for ample tariffs — to produces its assorted apparel offerings.

At slightest for now, the marketplace thinks Levi's whitethorn beryllium capable to flooded immoderate tariff headwinds.

Shares rallied much than 10% successful pre-market trading connected Tuesday connected the unchanged nett outlook and a 10 cent quarterly net beat. Execs said connected the telephone that request remained coagulated done the extremity of March.

Levi's shares were among the apical trending tickers connected the Yahoo Finance platform.

But whether the station net rally tin beryllium sustained is up successful the air.

President Trump uncorked a baseline tariff complaint of 10% that went into effect connected Apr. 5.

A higher tariff complaint volition commencement connected Apr. 9 for astir 60 countries that the medication considers to beryllium the worst commercialized offenders.

Some of those nations are important sourcing and concern regions for ample US retailers successful Levi's and Nike (NKE). China, for example, volition spot reciprocal tariffs of 34%. Vietnam clocks successful astatine 46%.

The reciprocal tariffs are connected apical of existing duties, specified arsenic the 20% Trump imposed connected China earlier, bringing the full complaint connected the state to 54%.

China has retaliated with a 34% tariff connected American goods. Trump fired backmost connected Monday, threatening an further 50% tariff connected China if the state doesn't region its US tariffs.

"Levi’s isn’t immune to outgo shocks oregon user slowdown: for sensitivity, we estimation tariffs could correspond a high-single digit percent deed to calendar 2026 net powerfulness assuming nary degradation successful user demand; and could correspond mid-teens percent deed to calendar 2026 net powerfulness assuming a mid-single digit percent interaction to quantity demanded," Stifel apparel banal expert Jim Duffy said successful a enactment connected Tuesday.