July 10 (Reuters) - Levi Strauss raised its

annual revenue and profit forecasts after beating quarterly

estimates on Thursday, betting on strong demand for its denims

in regions such as Europe in the face of tariff uncertainty.

The denim maker's efforts to introduce new styles and

collections including dresses, skirts and wide-legged jeans have

helped it navigate a challenging market and subdued consumer

spending, which continues to weigh on the retail industry.

In Europe, its net revenue rose 14% on a reported basis for

the quarter ended June 1, compared with a 2% decline a year

earlier.

Revenue in its direct-to-consumer segment increased 11% on a

reported basis after rising 8% a year ago.

The Trump administration's unpredictable trade policies with

countries such as China and Vietnam have disrupted supply chains

for apparel and footwear makers. However, Levi has been

leveraging its diverse sourcing network to mitigate the impact

from tariffs.

The company expects fiscal 2025 revenue to grow in the range

of 1% to 2%, compared with a prior forecast of a 1% to 2%

decline.

It also expects annual adjusted earnings per share to be

between $1.25 and $1.30, compared with a previous forecast of

$1.20 to $1.25 per share.

"Given our strong H1 and continued momentum across the

business - and despite higher tariffs - we are raising our

full-year revenue and EPS expectations," Chief Financial Officer

Harmit Singh said.

Levi said its forecast factors in 30% U.S. tariffs on

Chinese imports and 10% on those from other countries, but

assumes no significant worsening of the macroeconomic

environment such as consumer strain, supply-chain disruptions or

further tariff increases.

However, it expects a full-year gross margin expansion of 80

basis points, compared with 100 basis points projected earlier,

due to a 20-basis-point impact from tariffs after mitigation

plans.

The company's quarterly revenue of $1.45 billion beat

analysts' estimate of $1.37 billion, according to data compiled

by LSEG.

Its quarterly adjusted profit of 22 cents per share topped

estimates of 13 cents per share.