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Let's get a check in on Levi's shares. Continuing their move to the upside this morning after topping first quarter earnings expectations and maintaining full year forecasts. The jeans maker excluding the effects of President Trump's tariffs, the executive saying they anticipate a minimal impact near term. Still, the company says it may be required to modify sourcing practices which could impact product costs. Joining us now, Harmeet Singh is Levi Strauss's chief financial and growth officer. Harmeet, it's great to speak with you. So you are keeping your forecast, but you said that it assumes no deterioration in the macro environment. Can guidance be guidance right now if it does not include the impact of tariffs?

Good morning. Thanks for having me here. Um, as you know, we reported a very strong start to the year, our quarter one beat top line and bottom line expectations. Revenue, organic revenue accelerated and we were up 9%. Our EBIT margins expanded and we're up 400 basis points and EPS was up 50, uh you know, 52%. So overall, real strong start to the year. Our transformation strategies are working as we pivot to a DDC first lifestyle company. Um you know, our DDC results, which is direct to consumer, which includes our stores and e-commerce, uh you know, it was up 12%, 12 consecutive quarter of growth and what I like to call a tri-fecta, which is, you know, we're growing compsales, we're adding profitable new stores and we're growing e-commerce. And so, you know, a real strong start to the year and good momentum. To your question about guidance, medicine, um, it's uh, it's early days. Yes, the tariffs, uh, that were imposed have created more uncertainty. We are best positioned to navigate it. Uh, the situation is very fluid. Um, and the way we think of guidance is it's important to give expectations when we are clear, uh, about uh the expectations. We were very clear about quarter two and we guided quarter two, which is again, uh, you know, growing 3 and a half to 4 and a half percent on an organic basis. Gross margins continue to improve and we guided our EPS expectations. Uh, and so that's the reason we stuck with the full year guidance. Uh, you know, uh, just before the announcements of tariffs, given the results we had in Q1, we were debating whether we should take up full year guidance. Uh, but given that it's just the beginning of the year, and then the announcement of the tariffs, we felt prudent at this day to maintain our full year guidance.

Understood. So I know that you've also as part of that introduced a tariff task force internally. Our sourcing indicates that some items that you have could increase their costs by as much as 100%. Does that feel accurate to you?

Not entirely, only because if you think of our supply chain, yes, so first, we have got a task force. The task force is working 24/7. It's how we have managed other, uh, you know, previous crisis and we've actually, being a company has been around 170 years, we have navigated through them and emerged stronger post the crisis. Uh the task force is really looking at all options. They're looking at cost management options, they're looking at how we manage and talk to our different stakeholders, customers, our vendors who we have long tenure relationships and also looking at pricing options, you know, from that perspective. Uh, to your question about a diversified supply chain, uh, you know, we source from 28 different countries, uh, and not any country makes up more than 25% of, uh, you know, what we source from into the US. We source from 20 countries. We have the product already for spring and summer and that's why, you know, we were very clear about expectations for quarter two.

Harmeet, this is Nancy Tengler. I'm a native San Franciscan, so Levi holds a very special place in my heart, but I'm wondering if you anticipate any retaliatory demand issues from, from some of our trading partners.

Nancy, we haven't seen any retaliatory, you know, pushback from consumers. As a brand, we have been present internationally for over 80 years. Uh, we have deep connections with the consumers, you know, we're an American brand with a global presence and 60% of our business is overseas. Um, and so you know, as far as we are seeing international as an example was up 9% into 75% of the apparel market is outside the US and we are connecting really well with the consumers globally.

All right, Harmeet, we have to leave it there. Thank you so much for joining us. Really appreciate it.

Thanks folks.