Levi Strauss & Co., the iconic American apparel company, announced net revenues of $1.5 billion for the third quarter (Q3) of fiscal 2025 (FY25), which ended on August 31. This marks a 7% increase year-over-year (YoY) on both a reported and organic basis. The most significant growth came from the Asia region, which saw a 12% rise in sales, followed by the Americas at 6% and Europe at 5%. Additionally, the brand’s Beyond Yoga line reported net revenues of $33 million, reflecting a 2.5% increase.
The company’s direct-to-consumer (DTC) segment experienced an 11% increase in net revenues on a reported basis and a 9% increase on an organic basis. Specifically, DTC growth on an organic basis was driven by a 7% increase in the U.S., a 4% rise in Europe, and a notable 14% boost in Asia. Net revenues from e-commerce alone grew 18% on a reported basis and 16% organically, comprising 46% of total net revenues for Q3. Meanwhile, wholesale net revenues climbed 3% as reported and 5% organically.
Levi Strauss’s operating margin improved significantly, rising to 10.8% from 2.3% the previous year, while the gross margin increased by 110 basis points to 61.7%. Net income from continuing operations skyrocketed to $122 million, up from $23 million, with adjusted net income reaching $136 million. Diluted earnings per share (EPS) from continuing operations rose to $0.31, compared to $0.06 last year.
“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,” stated Michelle Gass, president and CEO of Levi Strauss. “With strength across channels, segments, and categories, we are raising our full-year outlook and are well-positioned for the holiday season.”
Harmit Singh, chief financial and growth officer of Levi Strauss & Co., commented, “Our Q3 results demonstrate the power of our strategic transformation, with strong financial performance exceeding expectations across all key metrics including sales, gross margin, adjusted EBIT margin, and adjusted diluted EPS. With four consecutive quarters of high-single-digit growth and record gross margins driven by our focus on profitability across the organization, we are raising our full-year revenue and adjusted diluted EPS expectations. We have built strong momentum that positions us well to continue delivering strong shareholder value in the years to come.”
Looking ahead, the impressive Levi Strauss revenue growth has prompted the company to revise its net revenue outlook for the full fiscal year 2025, now projecting growth of 3%, up from the previous estimate of 1% to 2%. The company also expects organic net revenue growth to reach about 6%, compared to the earlier forecast of 4.5% to 5.5%. Gross margin expansion predictions have been enhanced to 100 basis points from the previous 80 basis points, while the adjusted EBIT margin remains in the range of 11.4% to 11.6%. The effective tax rate is estimated to stay around 23%, and adjusted diluted earnings per share have been lifted to between $1.27 and $1.32, up from the previous $1.25 to $1.30 range. The sustained Levi Strauss revenue growth highlights the company’s effective strategies and positive market response in a competitive landscape.
