Levi's stock dropped 7% in pre-market trading, reaching $23.13, as the company warned of a 130-basis-point decline in its fourth-quarter gross margin. The margin pressure is attributed to U.S. tariffs affecting Levi's South Asian supply chain. Despite this, Levi's has raised its 2025 adjusted earnings per share forecast to $1.27–$1.32, up from the previous $1.25–$1.30 range.