Levi's UK reported sales rose 8.8% to £96.8m and pre-tax profits increased 23% to £9.6m, while noting reduced customer frequency and a tense consumer climate. The company flagged rising anti-American sentiment linked to Trump tariffs and policies as a key risk that could push British shoppers toward national or European brands. Additional risks include competition from retailers' own-label lines, pressure on department store stockists from online competition and inflexible rents, and the impact of high inflation on consumers' willingness and ability to spend on apparel. Similar impacts have been seen in the UK and Canada for other US brands such as Tesla and Jack Daniel's.
Levi's has warned that rising anti-Americanism as a consequence of the Trump tariffs and governmental policies could drive British shoppers away from its denim. The company, which distributes Levi's and Dockers clothing brands, issued the warning in its UK accounts, where it reported sales had risen 8.8% to 96.8m and pre-tax profits were up 23% to 9.6m. It said the Levi's brand had retained its attractiveness despite a tense consumer climate and declining customer frequency in the retail sector.
However, the accounts recently filed at Companies House listed one of its key risks and uncertainties was potentially changing sentiment towards US brands that could lead shoppers to develop increasing willingness to choose more national or European products. The risk was listed alongside other issues including competition from retailer’s own-label products and pressure on its department store stockists from increased online competition and inflexible rents.
It said apparel brands were also competing with more basic needs and there was a risk that high inflation has a direct impact on the willingness and ability of consumer to spend their reduced available money in apparel and fashion products. Levi's UK arm, which employs just over 1,600 people in the UK according to the accounts, is one of the first US brands to openly raise fears about the impact of the Trump administration on sales, in comments first reported by the Daily Telegraph.
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