*

Tops third-quarter revenue estimates

*

Strong demand for Y2K-inspired styles boosts sales in

Europe and

Americas

*

Levi's online sales surge 16%, DTC sales up 9% globally

Oct 9 (Reuters) - Levi Strauss raised its

full-year sales and profit forecasts on Thursday, banking on

strong demand for wide-leg denim bottoms in Europe and the

Americas despite higher tariffs.

The denim-maker now expects fiscal-year 2025 organic net

revenue from continuing operations, excluding Dockers, to rise

about 6%, compared to its prior target of a 4.5% to 5.5%

increase.

Retailers including Levi, American Eagle Outfitters ( AEO )

and Abercrombie & Fitch ( ANF ) have benefited from a resurgence

in Y2K-inspired styles and casual wear, with Gen Z and younger

millennials driving sales of baggy, loose-fit apparel.

Levi has leaned into full-price sales through its

direct-to-consumer channel, broadened its product offerings and

kept a tight leash on stock-keeping units, or SKUs.

Robust international demand helped cushion some tariff pain,

with quarterly revenues in Asia and Europe growing 12% and 5%,

respectively. Globally, DTC sales witnessed 9% growth, while

online sales jumped 16%.

The company, which sources the bulk of its products from

South Asia - including Bangladesh and Pakistan - has undertaken

modest price hikes and secured inventory ahead of the key

holiday season to limit disruptions from volatile trade

policies.

It projects adjusted profit per share in the range of $1.27

to $1.32, up from its prior forecast of between $1.25 and $1.30

per share. The forecast assumes U.S. tariffs will remain at 30%

for China and 20% for other countries through the year-end.

The San Francisco, California-based company reported a 7%

rise in net revenue for the quarter ended August 31 to $1.54

billion, beating analysts' estimate of $1.50 billion, according

to data compiled by LSEG.

Adjusted profit came in at 34 cents per share, from 33 cents

in the same period last year.

Operating margin improved to 10.8% from 2.3% a year earlier,

driven by higher DTC as well as full-price sales.