Levi Strauss & Co. (NYSE: LEVI) has reported robust financial results for the second quarter of fiscal 2025, showcasing a 6% increase in reported net revenues to $1.4 billion and a 9% rise in organic net revenues compared to the same period last year.
The company achieved its 13th consecutive quarter of global direct-to-consumer (DTC) comparable sales growth, with DTC revenues comprising 50% of total net revenues.
Gross margin expanded by 140 basis points to a record 62.6%, driven by lower product costs and a favourable channel mix, while adjusted EBIT margin rose to 8.3%, up 190 basis points year-on-year.
Levi Strauss raises sales guidance, says it will absorb some tariff costs for now
Diluted earnings per share from continuing operations reached $0.20, with adjusted diluted EPS climbing 37% to $0.22.
“We delivered another strong quarter, reflecting broad-based strength across the board — clear evidence that our strategic agenda is gaining traction,” said Michelle Gass, President and CEO of Levi Strauss & Co. “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’s® is a brand that has a rich 172-year heritage and remains a global icon. As we look ahead, Levi’s® has an even bolder future with a bigger legacy — and quarter by quarter, we’re building it.”
Levi Strauss also raised its full-year revenue and EPS outlook despite ongoing tariff impacts.
Regionally, Europe led growth with a 14% increase in reported net revenues, followed by the Americas at 5%, while Asia remained flat.
The Levi’s® brand saw a 9% organic revenue increase globally, reflecting the company’s strategic focus on transforming into a denim lifestyle brand and expanding its DTC footprint.
Beyond Yoga®, a key growth driver, posted a 12% rise in net revenues.
Levi Strauss returned $51 million to shareholders in the form of dividends during the quarter and announced an increased dividend of $0.14 per share for Q3, payable on August 8, 2025.
The company also plans to utilise $100 million from the sale of Dockers® for share repurchases.
Levi Strauss lifts annual forecasts on steady denim demand in Europe despite tariff pain
Looking ahead, Levi Strauss projects reported net revenue growth of 1% to 2% in fiscal 2025, with organic growth expected between 4.5% and 5.5%.
Adjusted diluted EPS guidance has been raised to $1.25-$1.30, reflecting confidence in its strategic initiatives despite macroeconomic uncertainties such as inflation, supply chain disruptions, and tariffs.
CEO Michelle Gass emphasised the company’s ambition to solidify Levi’s® as a global icon with a bold future, while CFO Harmit Singh highlighted the firm’s focus on higher growth, stronger margins, and improved cash flows.
With a 17.7% return on invested capital and a strong liquidity position of $1.5 billion, Levi Strauss remains well-positioned to deliver value to shareholders and sustain its growth trajectory.
“Given our strong H1 and continued momentum across the business — and despite higher tariffs — we are raising our full-year revenue and EPS expectations,” said Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co. “The continued inflection of our financial performance is a direct result of our laser focus on the core Levi’s® brand and our DTC-first strategy. We are fundamentally becoming a company with a higher growth rate, higher margin profile, stronger cash flows and higher returns on invested capital.”
At the time of writing, Levi Strauss & Co. was trading at US$19.73, up 33 cents (1.70%) today. In after-hours trading it was $20.90, up $1.17 (5.93%). It has a market cap of around $7.8 billion.
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