Levi Strauss & Co. increases full-year guidance after strong Q3

Levi Strauss & Co. announced financial results for the third quarter ended August 31, 2025, with net revenues of 1.5 billion dollars, representing a 7 percent increase on both a reported and organic basis versus the prior year. Beyond Yoga net revenues increased 2 percent on a reported and organic basis.

The company’s performance was highlighted by significant growth in Asia, up 12 percent on a reported and organic basis and its direct-to-consumer (DTC) channel, which saw net revenues increase by 11 percent on a reported basis and 9 percent organically, ultimately comprising 46 percent of total net revenues.

Commenting on the strong results and outlook, CEO Michelle Gass said: "With strength across channels, segments and categories, we are raising our full-year outlook and are well-positioned for the holiday season.”

Levi Strauss raises outlook on strong Q3

The company net revenues in the Americas increased 6 percent on a reported basis and 7 percent on an organic basis. Within the Americas, the U.S. grew 3 percent on an organic basis. In Europe, net revenues increased 5 percent on a reported basis and 3 percent on an organic basis. Wholesale net revenues increased 3 percent on a reported basis and 5 percent on an organic basis.

Gass credited the results to the company's strategic shift: “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. She added that the consistency of the company's performance has given her "confidence that we will deliver sustained, profitable growth into 2026 and beyond.”

CFO Harmit Singh underscored the strength of the transformation, noting that the Q3 performance "exceeding expectations across all key metrics including sales, gross margin, adjusted EBIT margin and adjusted diluted EPS.”

Following this strong quarter, the company raised its full-year fiscal 2025 guidance. It now expects reported net revenue growth of approximately 3 percent (up from 1 percent to 2 percent) and organic net revenue growth of approximately 6 percent (up from 4.5 percent to 5.5 percent). Adjusted diluted EPS was also raised to a range of 1.27 dollars to 1.32 dollars. The company's outlook assumes that U.S. tariffs on imports from China remain at 30 percent for the rest of the year.

Shareholder returns and restructuring

The company returned approximately 151 million dollars to shareholders during the quarter, an increase of 118 percent over the prior year, primarily through dividends and the launch of a 120 million dollars accelerated share repurchase program.

In terms of restructuring, the company completed the sale of the Dockers intellectual property and operations in the U.S. and Canada on July 31, 2025, for gross proceeds of 194.7 million dollars. The sale of the remaining Dockers operations is expected to close in the first quarter of 2026.