Levi Strauss 2025 Q3 Earnings Strong Performance as Net Income Surges 953.6%

Levi Strauss reported better-than-expected earnings and raised full-year guidance, reflecting strong organic revenue growth and improved profitability. The company’s net income surged 953.6% year-over-year to $218.10 million, and it raised its 2025 revenue and earnings outlook, signaling confidence in its momentum.

Revenue
Levi Strauss reported total revenue of $1.54 billion for the third quarter of 2025, representing a 7.0% increase from $1.44 billion in the same period a year ago. The company’s wholesale segment contributed $832.20 million, while direct-to-consumer revenue rose to $711.20 million, underscoring continued strength in its own retail channels. International markets also saw notable growth, adding to the overall expansion.

Earnings/Net Income
Levi Strauss’s earnings per share (EPS) jumped 1,000.0% to $0.55 in 2025 Q3, compared to $0.05 in the prior year, with net income rising to $218.10 million from $20.70 million. This significant increase reflects improved cost management, strategic pricing, and strong demand across its product lines. The EPS performance far exceeded expectations, indicating robust profitability.

Price Action
The stock price of Levi Strauss rose 0.45% on the latest trading day, 0.66% for the week, and surged 13.09% month-to-date.

Post Earnings Price Action Review
Despite delivering better-than-expected financial results and raising its full-year guidance, Levi Strauss shares dropped over 6% in extended trading. The decline came after the company indicated a cautious approach for the remainder of 2025 amid ongoing macroeconomic uncertainties. The stock had previously gained about 42% this year, reflecting investor confidence in the company’s strategic shift and growth momentum.

CEO Commentary
CEO Michelle Gass highlighted Levi Strauss’ fourth consecutive quarter of strong revenue growth, driven by a DTC-first strategy, innovative product offerings, and successful marketing campaigns. She emphasized the brand’s leadership in casualization trends and its growth potential in the women’s and Asian markets, while acknowledging the need to remain vigilant against external challenges.

Guidance
Levi Strauss raised its full-year 2025 revenue growth guidance to approximately 6%, with adjusted diluted EPS expected in the range of $1.27 to $1.32. For Q4, the company anticipates organic net revenue growth of about 1% and adjusted EBIT margin between 12.4% and 12.6%. The company also expects gross margin contraction by 100 basis points in Q4 due to tariff impacts and the absence of a 53rd week in the fiscal calendar.

Additional News
The company reported better-than-expected Q3 results, with adjusted EPS of 34 cents versus 31 cents expected, and revenue of $1.54 billion versus $1.50 billion expected. CEO Michelle Gass stated that targeted price increases have not hurt demand and that the company will continue to implement strategic price hikes in 2026. CFO Harmit Singh noted that demand remains strong, with much of the revenue growth driven by volume rather than pricing. Levi’s gross margin rose to 61.7%, surpassing expectations and demonstrating the benefits of shifting to higher-margin direct-to-consumer sales. The company also reaffirmed its original gross margin outlook, assuming current U.S. and global import tariffs remain in place. Under Gass’ leadership, Levi’s is expanding its product offerings beyond jeans and strengthening its position in the women’s market, which grew 9% during the quarter.