Levi Strauss & Co. Cls A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.06%.
Did LEVI Beat Earnings? Q2 2025 Results
Levi Strauss delivered a solid second quarter of fiscal 2025, posting adjusted diluted EPS of $0.22, up 37% from $0.16 a year ago, on net revenues of $1.45 billion that rose 6% on a reported basis and 9% organically. The primary engine behind the results was the company's accelerating shift toward direct-to-consumer selling, with DTC now representing 50% of total net revenues and global DTC comparable sales extending their growth streak to 13 consecutive quarters. Gross margin expanded 140 basis points to 62.6%, aided by lower product costs and a richer channel mix, while adjusted EBIT margin climbed 190 basis points to 8.3%. Europe was the standout region, delivering 15% organic revenue growth, and e-commerce rose 13%. Looking ahead, Levi's raised its full-year adjusted diluted EPS guidance by $0.05 to a range of $1.25 to $1.30 and lifted its organic revenue growth outlook to 4.5% to 5.5%, even as management absorbed an assumed 30% tariff on China imports into the updated forecast.
- 13th consecutive quarter of global DTC comparable sales growth
- DTC comprised 50% of total net revenues
- Gross margin expansion of 140 basis points to 62.6% driven by lower product costs and favorable channel mix
- SG&A leverage of 50 basis points year over year
- Levi's brand grew 9% globally on an organic basis
- E-commerce grew 13% on both reported and organic basis
- Europe organic net revenue growth of 15%
- U.S. organic net revenue growth of 7%
“We delivered another strong quarter, reflecting broad-based strength across the board—clear evidence that our strategic agenda is gaining traction.”
Levi Strauss CEO, on the earnings call
Forward Guidance & Outlook
The company raised its full-year fiscal 2025 guidance despite higher tariff assumptions (30% on China imports, 10% rest of world). Reported net revenue growth raised to 1%–2% (from -1% to -2%). Organic net revenue growth raised to 4.5%–5.5% (from 3.5%–4.5%). Gross margin expansion of 80 basis points expected (reduced from 100 bps due to 20 bps tariff impact after mitigation). Adjusted EBIT margin maintained at 11.4%–11.6%, up 70–90 bps year over year. Tax rate maintained at approximately 23%. Adjusted diluted EPS raised by $0.05 to $1.25–$1.30 (from $1.20–$1.25). Outlook assumes no significant worsening of macroeconomic pressures, inflationary pressures, recessionary concerns, supply chain disruptions, or additional tariff escalation.
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Figures from SEC filings and company reports. Not investment advice.