(Reuters) - Levi Strauss beat first-quarter revenue estimates on Monday and maintained its full-year forecast, betting on steady demand for its denims and a diverse supply chain to navigate an escalating trade war that has hit footwear and apparel retailers.

The company has seen demand for wide-legged and skinny jeans hold up - a trend in line with rivals such as Abercrombie & Fitch ( ANF ) and Gap - despite shoppers being selective in spending on discretionary items.

The retailer posted a 3% rise in reported quarterly revenue from continuing operations to $1.53 billion, which excluded sales from its Dockers brand. Analysts, on average, were expecting a 1% drop to $1.54 billion, as per data compiled by LSEG.

Gross margin increased 330 basis points to 62.1% for the three months ended March 2, from 58.8% last year, driven by lower product costs and a strong direct-to-consumer channel.

As part of its plan to streamline operations, Levi said last October it was exploring a sale of Dockers, which has seen demand struggle.

"While we recognize that we are operating in an uncertain environment, our global footprint, strong margin structure, and agile supply chain position us to navigate the balance of the year and beyond," said Levi Strauss CEO Michelle Gass.

The company maintained its fiscal 2025 organic net revenue and profit forecasts, which did not include any impact from recently announced tariffs and excluded revenues from Dockers.