LEVI STRAUSS & CO REPORTS 6% NET REVENUE GROWTH

By Philip Seaworth • Friday, July 11 10:13 • Permanent Link

Levi Strauss & Co. has reported a 6% increase in net revenues to $1.4 billion, with organic net revenues up 9% in the second quarter of 2025 compared to the same period in 2024. The company's gross margin expanded by 140 basis points to a record 62.6%, and it achieved an operating margin of 7.5%, a significant improvement from the 1.5% reported in the second quarter of 2024.

The company's direct-to-consumer (DTC) net revenues increased by 11% on a reported basis and 10% on an organic basis, with DTC comprising 50% of total net revenues in the second quarter. Moreover, net revenues from e-commerce grew by 13% on a reported basis and 13% on an organic basis.

Levi Strauss & Co. also saw growth in its different regional segments. In the Americas, net revenues increased by 5% on a reported basis and 9% on an organic basis, with the U.S. experiencing a 7% organic growth. In Europe, net revenues increased by 14% on a reported basis and 15% on an organic basis, while Asia's net revenues remained flat on both reported and organic bases. Beyond Yoga® net revenues increased by 12% on both reported and organic bases.

Operating margin for the company was 7.5%, a significant improvement from the 1.5% reported in the second quarter of 2024. Adjusted EBIT margin also increased by 190 basis points to 8.3% from 6.3% last year on a reported basis due to higher gross margin and SG&A leverage.

The company's continuing operations diluted EPS increased to $0.20, with adjusted diluted EPS reaching $0.22, up 37% year over year. Net income from continuing operations was $80 million, a substantial increase from $17 million in the second quarter of 2024. Adjusted net income also saw significant growth, reaching $89 million compared to $65 million in the same period last year.

Looking forward, the company has raised its full-year net revenue and EPS outlook, including the impact of tariffs. It now expects reported net revenue growth to be 1% to 2%, up from the previous range of (1%) to (2%), and organic net revenue growth to be 4.5% to 5.5%, up from 3.5% to 4.5%. Additionally, the company has raised its adjusted diluted EPS to $1.25 to $1.30, up from $1.20 to $1.25.

As a result of these announcements, the company's shares have moved 1.7% on the market, and are now trading at a price of $19.73. If you want to know more, read the company's complete 8-K report here.

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