Levi Strauss reports strong Q2, boosts annual forecast

Levi Strauss & Co. announced strong financial results for its second quarter ended June 1, 2025, demonstrating significant growth across key metrics and prompting the company to raise its full-year net revenue and earnings per share (EPS) outlook, even with the impact of tariffs.

The company reported a 6 percent increase in net revenues to 1.4 billion dollars, and a 9 percent rise on an organic basis compared to Q2 2024. Profitability metrics also showed an improvement. Net income from continuing operations was 80 million dollars, up from 17 million dollars in Q2 2024, and adjusted net income increased to 89 million dollars. Diluted earnings per share from continuing operations increased to 20 cents, with adjusted diluted EPS rising 37 percent year over year to 22 cents.

Michelle Gass, president and CEO of Levi Strauss & Co., commented on the results, stating, "We delivered another strong quarter, reflecting broad-based strength across the board—clear evidence that our strategic agenda is gaining traction. We're entering the second half of 2025 from a position of strength as our ambition to transform into a denim lifestyle brand and best-in-class DTC retailer becomes our reality."

Levi Strauss posts positive Q2

The iconic Levi's brand saw a 9 percent organic growth globally. Regionally, the Americas experienced a 5 percent increase in reported net revenues and 9 percent on an organic basis, with the U.S. contributing a 7 percent organic growth. Europe recorded a strong performance, with net revenues up 14 percent on a reported basis and 15 percent organically. Asia's net revenues remained flat on both reported and organic bases, while Beyond Yoga net revenues increased by 12 percent on both reported and organic bases.

Levi Strauss & Co. achieved its 13th consecutive quarter of global Direct-to-Consumer (DTC) comparable sales growth, with DTC net revenues increasing 11 percent on a reported basis and 10 percent organically. This growth was consistent across regions, with a 9 percent increase in the U.S. and Europe, and a 10 percent increase in Asia for DTC organic growth.

E-commerce net revenues specifically grew 13 percent on both reported and organic bases. DTC channels comprised 50 percent of total net revenues in the second quarter. Wholesale net revenues also saw an increase of 3 percent on a reported basis and 7 percent organically.

Gross margin for the quarter expanded by 140 basis points to 62.6 percent, operating margin rose to 7.5 percent, while adjusted EBIT margin rose by 190 basis points to 8.3 percent.

Levi Strauss raises outlook

Harmit Singh, chief financial and growth officer of Levi Strauss & Co., added, "Given our strong H1 and continued momentum across the business—and despite higher tariffs—we are raising our full-year revenue and EPS expectations."

For fiscal year 2025, the company has raised its reported net revenue growth guidance to 1 percent to 2 percent and organic net revenue growth to 4.5 percent to 5.5 percent. The gross margin expansion is now expected to be 80 basis points, adjusted for a 20 basis point impact from tariffs. Adjusted EBIT margin is maintained at 11.4 percent to 11.6 percent, and adjusted diluted EPS has been raised by 5 cents to 1.25 dollars to 1.30 dollars.

For the third quarter, the company has declared an increase in the dividend to 14 cents per share totalling approximately 55 million dollars.