Levi Strauss & Stock Earnings Reports

Levi Strauss delivered a strong Q3 FY2025, marking the fourth consecutive quarter of high single‑digit organic revenue growth and prompting management to raise full‑year revenue and EPS guidance. Net revenue grew 7% on an organic basis, driven by broad‑based strength across DTC (up 9%, with e‑commerce up 16%) and wholesale (up 5%), with international accounting for ~75% of growth and the U.S. contributing ~25%. The company reported a record Q3 gross margin of 61.7% (up 110 bps year‑over‑year), adjusted EBIT margin of 11.8%, and adjusted diluted EPS of $0.34. Management reiterated a DTC‑first, head‑to‑toe denim lifestyle strategy (expanded tops, women's, and premium Blue Tab offerings) and noted strong momentum in Asia (including Japan and India). The board returned substantial capital to shareholders ($151M in the quarter; $283M YTD), including a $120M accelerated share repurchase and ~5M shares retired. Tariffs remain a headwind (noted impacts to Q4 gross margin and EPS), but the company expects to largely mitigate the effect through pricing, promotion optimization, vendor negotiation, and supply‑chain diversification. Inventory dollars are up ~12% (units up ~8%) as planned for holiday; distribution center transformation is causing short‑term cost pressure but is expected to reduce costs once parallel DC runs are completed (targeted ramp‑down by early 2026). Q4 guidance: ~1% organic growth (reported revenue down ~3% due to noncomps), gross margin down ~100 bps, adjusted EBIT margin 12.4%–12.6%, and adjusted diluted EPS $0.36–$0.38. Full‑year expectations were modestly raised to ~6% organic net revenue growth and an incremental $0.02 of EPS versus prior guidance.