Levi's Stock Surges with DTC Model, Strong Revenue Growth, and Increasing Dividend

Levi Strauss & Co. reported Q1 2025 revenue growth of 3.4%, exceeding MarketBeat's consensus estimate. The company's direct-to-consumer (DTC) channels drove a 9% organic growth, with non-denim items accounting for 35% of sales. The DTC model improved gross and adjusted EBITDA margins, leading to a 52% increase in adjusted diluted earnings to $0.38. Levi's capital return is a good fit for investors due to its high yield, low cost, and distribution growth outlook.