Clothing brand Levi Strauss saw higher-than-expected profits thanks to targeted price increases and a shift away from wholesalers.
In an interview with CNBC, the company’s CEO, Michele Gass, said the company has begun to raise the price of some of its jeans, and will continue to do so in the U.S. and other markets next year to combat tariffs.
“As we’ve been taking these targeted actions, we’ve not seen an impact to demand. We’ll of course, stay very, very close to that but … we’re taking a surgical, thoughtful approach on any pricing,” said Gass.
“We know that we’re a brand that is known for great quality and value. We don’t take that for granted. We know we have to earn that every day.”
Both the company’s reported and organic net revenues increased by 7% year-over-year for Q3 2025.
The largest growth was in Asia, with net revenues rising by 12% on both an organic and reported basis.
Lavi Strauss reported earnings per share of 34 cents, which was higher than the expected 31 cents.
Revenue also beat expectations, coming in at US$1.54 billion versus $1.5 billion expected.
Despite the higher-than-expected outcomes, shares dropped more than 6% in extended trading while climbing 42% this year through to Thursday’s close.
Levi Strauss chief financial and growth officer Harmit Singh said this momentum will put them in a good position to deliver “strong shareholder value” next year and for years to come.
“With four consecutive quarters of high-single-digit growth and record gross margins driven by our focus on profitability across the organisation, we are raising our full-year revenue and adjusted diluted EPS expectations,” he said.
The company’s guidance for the full year 2025 expects reported net revenue growth of 3%, up from 1% to 2%.
