Charles R. Goulding and Kate Esposito explain how Levi Strauss & Co. is beating tariff pressure with smart tech, sharp strategy, and a denim game stronger than ever.
Introduction: Levi Strauss & Co. Sees Success Amidst Ongoing Tariffs
On July 11th, 2025, Levi Strauss & Co., the American clothing company known for its denim jeans, reported a surge in revenue growth. This was highly unexpected because almost all of Levi’s suppliers are based outside the United States, meaning they were likely to be impacted by President Trump’s new tariffs. Instead, Levi’s is thriving, with shares rising 9.7% in one day and a projected yearly revenue of $1.45 billion, up from original estimates of $1.36 billion. The company largely associates this growth with their decision to branch out from jeans and focus on other denim products, including denim jackets. However, this success is also a result of the company’s ability to implement revolutionary technologies, such as additive manufacturing, to further their business and improve their production rate.
How Levi Strauss & Co. is Moving Forward Amidst Uncertainty
A company as old as Levi’s, founded in 1853, knows how to adapt to market changes, which is exactly what they have been doing to find success while combatting new tariffs. To avoid global issues over the past few years, the company has diversified their supply chain. In 2019, Levi’s reduced its manufacturing in China from 16% to 2%, which has helped them tackle the new 30% tariff on Chinese imports. Vietnam is also one of Levi’s important production bases, accounting for an estimated 15-20% of manufacturing. This posed a problem in the wake of President Trump threatening to place a 46% tariff on all imports from Vietnam. Fortunately, Vietnam has taken a proactive stance and struck a trade deal, with the agreement including a 20% U.S. tariff on Vietnamese goods. Levi’s also has a presence in Indonesia, with eight suppliers and one manufacturing plant located in the country. As a result, the new U.S. trade agreement with Indonesia will likely work to their advantage. With 60% of revenue generated internationally and sourcing spread across 28 countries, Levi’s is well-positioned to withstand the effects of tariffs on imports from any region of the world. The company is planning to absorb what costs it can, anticipating tariffs will only impact the business by 2 to 3 cents on earnings per share, or US$25-$30 million by year end.
Levi’s has also expanded their product line to reach more consumers. In the past, the company typically advertised jeans for men. Now, they are trying to draw more female customers, selling dresses, skirts, and tank tops. In 2021, Levi’s purchased Beyond Yoga, a female owned and operated U.S. based athletic apparel brand. Women now account for 36% of sales, up from 29% in 2018. In the future, the company’s goal is for 50% of revenue to come from female customers. Furthermore, Levi’s has partnered with popular figures and brands to remain relevant with younger generations. In September 2024, Levi’s launched “Launderette”, the first chapter of their Reiimagine campaign with Beyoncé ahead of her Cowboy Carter tour. Within 48 hours of release, the campaign earned a Media Impact Value (MIV) of US$5 million and boosted sales by nearly 20% in the U.S. Levi’s has also collaborated with Nike multiple times, with the 2018 launch of Levi’s x Jordan, the release of Nike By Levi’s in 2019, and the Levi’s x Nike Air Max 95 collection, which dropped on July 10th of this year. These joint ventures have greatly helped Levi’s appeal to a wider audience, including women, athletes, and teenagers.
The company has also heightened its focus on the direct-to-consumer (DTC) channel. Levi’s intends to decrease its reliance on revenue from retail partners and department stores and instead focus on sales from its own stores and websites. Since deciding to concentrate on DTC processes, sales across both company-operated stores and e-commerce grew 19% on a reported basis, with DTC revenue representing 47% of total sales. To further improve the online shopping experience, Levi’s updated its rendering model to decrease page load times, launched a new search solution to deliver more relevant results, and redesigned site navigation based on analytics and feedback. Levi’s is now the 162nd largest North American online retailer based on the Digital Commerce 360’s Top 1,000 ranking.
Applications of Additive Manufacturing Technologies
Levi Strauss & Co. has long recognized the potential of 3D printing to transform business practices. In 2017, the company began utilizing additive manufacturing to develop and test designs for their denim jackets, using Stratasys’ Fortus 350 mc 3D production system to effectively implement this process. Levi’s Eureka Lab for research and development, moved from Turkey to San Francisco in 2013, is the company’s main research and development site. At the lab, digital renderings were taken of each jacket before additive manufacturing technology was used to create a shell of what the final product would look like. By implementing this technology, Levi’s aimed to decrease material and manufacturing costs to reap both financial and environmental benefits. The company stated that this technology was not being used to create an entirely new jacket but to develop details, and the jackets were not for sale after testing finished.
Additive manufacturing is a groundbreaking technology that is revolutionizing the fashion industry, offering new possibilities in design, customization, and sustainability. The main advantage of 3D-printed textiles is their positive environmental impact. 3D printing generates minimal waste, ensuring that only necessary amounts of materials are used. This translates to reduced production costs, making additive manufacturing an environmentally and financially sustainable solution. Another key facet of 3D printing within the fashion industry is its ability to create complex geometries and structures, leading to unique and innovative designs based on individual preferences. Levi’s can also use 3D printing to curb supply chain disruptions. If some aspects of the manufacturing process used 3D printing in-house, the company would be less reliant on overseas suppliers, which would help them combat uncertainties raised by new tariffs. Furthermore, as Levi’s has already discovered, 3D printing allows for models to be produced quickly and inexpensively, helping companies test prototypes and determine which will work best to create high quality products.
The Research and Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes, and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing, and revising 3D printed prototypes can be included as a percentage of eligible time spent for the R&D Tax Credit. Similarly, when used as a method if improving a process, time spent integrating 3D printing hardware and software counts as an eligible activity. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion: Looking to the Future
Levi Strauss & Co. is an intelligently managed company capable of persevering amid times of economic uncertainty and heightened tariffs. Their ability to adapt to challenges and implement new business practices has enabled them to see great financial success on the stock market this past quarter. Should they decide to increase their reliance on additive manufacturing, they will likely see their stocks soar once again.
