Levi Strauss & Co shares fell about 7% in premarket trading on Friday as investors focused on the denim maker's warning of a tariff-related hit to its fourth-quarter margin, overlooking a higher annual profit forecast.

The margin-hit forecast highlights the impact of the Trump administration's changing trade policies on consumer-facing companies, especially those with suppliers in countries that do not have trade deals with Washington in place yet.

While Levi's has capitalized on the resurgence of baggy, loose-fit apparel among Gen Z customers and raised its 2025 sales and profit forecasts on Thursday, the company still warned of a 130-basis-point hit to its fourth-quarter gross margins.

The company sources the bulk of its products from South Asia, including Bangladesh, Cambodia and Pa

See Full Page