Levi Strauss on Wednesday increased its profit outlook after it received tariff refunds, but gave less rosy revenue guidance.
The denim retailer raised its adjusted earnings per share expectation for the full fiscal year to between $1.54 and $1.56, from a previous range of $1.46 to $1.52. Analysts were expecting a range of between $1.52 and $1.59, according to LSEG.
The company also lowered its net revenue growth guidance for the full year to 7%, the bottom of its previously provided range of a 7% to 7.5% increase.
For its fiscal third quarter, the denim retailer said it saw a 4% increase in net revenues in the Americas, though revenue in the U.S. decreased 1%. It also reported an operating margin of 13.8% for the quarter, compared to 10.8% in the same quarter last year, boosted by tariff refunds that contributed 4.9% to operating margin and gross margin.
Levi also said its tariff refunds contributed a 16-cent benefit to its earnings per share, of which 5 cents were "redeployed to support the business." It did not specify how it invested that money.