Levi Strauss & Co. Cls A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.59%.
Did LEVI Beat Earnings? Q3 2025 Results
Levi Strauss & Co. posted a convincing fiscal third-quarter beat, with earnings per share of $0.34 clearing the $0.31 consensus estimate by 11.04% and revenue of $1.54 billion coming in 2.99% ahead of the $1.50 billion Wall Street expected, up 1.8% year over year. The headline driver was a powerful acceleration in the company's direct-to-consumer pivot, with DTC revenues climbing 11% on a reported basis to represent 46% of total net revenues, while e-commerce surged 18%, collectively helping expand gross margin 110 basis points to 61.7%. Asia led regional performance with 12% reported growth, and the value-tier Levi Strauss Signature brand posted 21.1% growth in the quarter. Management responded to the momentum by lifting its full-year fiscal 2025 outlook, raising organic revenue growth guidance to approximately 6% and nudging adjusted diluted EPS guidance to $1.27-$1.32, with gross margin expansion now expected at 100 basis points. At least one analyst maintained a Buy rating with a $27 price target following the results, reflecting broader confidence in Levi's ongoing strategic repositioning.
- DTC-first strategy driving high-single-digit comparable sales growth
- E-commerce net revenues grew 18% on a reported basis
- Favorable channel mix and price increases expanding gross margins
- Strong growth across all geographic segments, with Asia leading at 12%
- Four consecutive quarters of high-single-digit growth
- Levi Strauss Signature brand grew 21.1% in the quarter
“We delivered another very strong quarter as our pivot to becoming a DTC-first, head-to-toe denim lifestyle retailer is driving a meaningful inflection in our financial performance.”
Levi Strauss CEO, on the earnings call
Forward Guidance & Outlook
The company raised its full fiscal year 2025 guidance (based on continuing operations, excluding Dockers): reported net revenue growth raised to approximately 3% (from 1%-2%); organic net revenue growth raised to approximately 6% (from 4.5%-5.5%); gross margin expansion of 100 basis points (up from 80 bps); adjusted EBIT margin maintained at 11.4%-11.6%; tax rate maintained at approximately 23%; adjusted diluted EPS raised to $1.27-$1.32 (from $1.25-$1.30). Guidance assumes U.S. tariffs on imports from China remain at 30% and rest-of-world at 20% for the remainder of the year, and no significant worsening of macroeconomic pressures, inflationary pressures, recessionary concerns, supply chain disruptions, or currency impacts.
LEVI YoY Financials
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LEVI Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.