Denim jorts. Denim Nikes. Denim aprons. Denim… everything. The “head-to-toe denim” trend is hotter than a rodeo bull right now, boosting Levi’s sales (and its shares) to unexpected highs.
Levi’s stock soared over 11% on Friday after the retailer announced Q2 sales of $1.45 billion, 6% higher than a year earlier and well above Wall Street’s expectations. The jeans purveyor also gave a bullish outlook for the rest of 2025, projecting a 1%–2% rise in sales even as analysts expected a decline. Adjusted earnings per share also jumped to $0.22, nearly double Wall Street’s estimate of $0.13.
The strong numbers suggest that CEO Michelle Gass is steering the company in the right direction as she doubles down on expanding Levi’s offerings. “We’re staying true to our denim heritage as we build out a compelling head-to-toe lifestyle assortment,” she said.
That “head-to-toe” part is no exaggeration, folks. Think denim caps, bucket hats, backpacks, dresses, tank tops, totes, purses, pouches, even aprons. For your feet, look no further than Levi’s collaboration with Nike to release a denim Air Max 95 that’s become a runaway success, selling for prices ranging as high as $999 per pair.
Although not everyone has the guts to go full Canadian tuxedo, huge swaths of millennials and Gen Z are embracing Levi’s in subtler ways thanks to the nostalgic return of ’90s and Y2K fashion, donning looser styles like baggy dad jorts.
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Fun fact: Back in 1951, singer Bing Crosby was denied entry to a Vancouver hotel for showing up in a full denim-on-denim outfit. Levi’s capitalized on that faux pas by creating a custom-made jean tuxedo for the crooner, which became his signature outfit and has since been copped by noteworthy names ranging from Rihanna to Canadian Prime Minister Justin Trudeau.
How Levi’s navigated the tariff scare
Levi’s success seems all the more impressive at a time when other apparel retailers are taking tariff licks. Gap shares plunged in May after projecting a tariff hit of up to $300 million. American Eagle pulled its guidance altogether, and its stock has slid over 40% year to date.
Still, Levi’s did not escape tariff turmoil without a couple of scrapes. Levies on imports are expected to drain $25–$30 million from the company through the end of the year, and cost shareholders $0.2–$0.3 in per-share profits.
Levi’s has tried to balance out this pain via surgical price tweaks and diversifying its supply chain. This spring, executives said that China accounted for only around 1% of the company’s imports, with 5% coming from Mexico and similar percentages from Vietnam, Bangladesh, Cambodia, Egypt, Pakistan, and Sri Lanka.
Analysts also think Levi’s has more leeway than other retailers to jack up prices and keep them elevated, so don’t expect a summer discount on those dad jorts you’ve been eyeing anytime soon.—JD