Levi Strauss shares fell nearly 6% despite posting stronger-than-expected quarterly revenue and issuing upbeat FY2025 earnings guidance. The decline reflects investor caution over retail headwinds, including slowing discretionary spending and rising inventory costs. Management emphasized direct-to-consumer growth and brand-led pricing strategy, which helped lift margins. Analysts said the pullback is driven by profit-taking and macro retail pressures rather than company-specific weakness, with fundamentals remaining broadly resilient.