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- **Revenue Growth**: 7% organic growth in 2025, driven by DTC (11%) and tops segment (double-digit growth). Q4 DTC up 10%, e-commerce +22%.
- **Brand Leadership**: Levi's #1 globally in denim, with women's and youth segments gaining share. Blue Tab premium collection launched with strong consumer response.
- **Gross Margin Challenges**: 2025 gross margin down 100bps due to tariffs, but 2026 flat guidance with 150bps tariff mitigation via pricing and cost actions.
- **DTC Margin Expansion**: 15 consecutive quarters of positive comps, targeting further margin growth via AI and retail excellence.
- **2026 Outlook**: 4-5% organic growth, Super Bowl campaign launch, and $200M ASR program to return capital.

**【CEO Summary Section】**
- **2025 Performance**: Organic net revenue grew 7%, driven by Levi's brand strength, DTC expansion, and denim lifestyle expansion. Levi's is the #1 denim brand globally, with women's and tops segments leading growth.
- **DTC Momentum**: Direct-to-consumer (DTC) revenue grew 11% (half of total business), with 15 consecutive quarters of positive comps. Q4 DTC growth was 10%, e-commerce up 22%.
- **Product Innovation**: Tops business grew double digits, contributing nearly half of revenue growth. New Blue Tab premium collection launched globally, with strong consumer response.
- **Global Expansion**: International revenue (60% of total) grew 8%, led by Europe (10% Q4 growth) and Latin America. 47 net new stores opened in Q4, including expansion in Asia.
- **2026 Outlook**: Target 4-5% organic growth, with focus on DTC expansion (50-60 new stores), AI-driven efficiency, and Super Bowl campaign launch.

**【CFO Financial Commentary】**
- **Q4 Results**: Organic net revenue +5%, adjusted EBIT margin 12.1% (down 180bps vs. prior year). Adjusted EPS $0.41, beating expectations.
- **Gross Margin**: 60.8% (down 100bps vs. prior year) due to tariffs, partially offset by pricing and full-price selling. 2026 guidance: flat gross margin, with 150bps tariff impact to be mitigated.
- **SG&A**: +2.6% due to sales upside, distribution costs, and FX. 2026 target: 40-60bps SG&A rate improvement via cost actions and AI.
- **Balance Sheet**: Inventory up 9% YoY (tariff-related), but quality well-positioned. 2026 capex $230M for stores, fleet, and digital.
- **Shareholder Returns**: $363M returned in 2025 (7% dividend increase, $150M buyback). Announced $200M ASR program.

**【Q&A Highlights】**
- **Gross Margin Guidance**: 2026 flat vs. prior year, with 150bps tariff impact to be offset by pricing, full-price selling, and cost reductions. 2027+ expansion expected.
- **DTC Margin Expansion**: 15 quarters of positive comps, with UPT and AUR growth. 2026 target: continued margin expansion via retail excellence and AI.
- **Europe Strength**: Q4 +10% growth, operating margin +330bps. 2026 mid-single-digit growth expected, driven by prebook momentum and brand elevation.
- **Blue Tab Potential**: Premium collection testing well, with $200-$400 price points. 2026 expansion planned, targeting sizable underpenetrated market.
- **Supply Chain Progress**: Europe distribution transition complete, U.S. hybrid model delayed but expected to resolve by mid-2026. AI adoption driving efficiency improvements.

Levi Strauss & Co. (LEVI) Q4 2025 Earnings Call Transcript

- **Revenue beat**: Q3 +7% (vs. +3% U.S., +12% Asia). Women's +9%, tops +9%, e-commerce +16%.
- **Margin strength**: Gross margin 61.7% (+110bps), EBIT 11.8%, EPS $0.34 (both ahead of guide).
- **Guidance raise**: Full year organic +6%, EPS $1.27-$1.32 (+$0.02). Q4 revenue +1% (2-year +9%).
- **Tariff mitigation**: 2025 impact 20bps, 2026 actions include pricing, FX, and diversification.
- **Share buyback**: $283M returned YTD, including $120M ASR.
- **2026 vision**: 15% EBIT margin with gross margin expansion, SG&A leverage, and marketing reinvestment.

**【CEO Summary Section】**
- Delivered 4th consecutive quarter of high single-digit organic revenue growth (9% DTC, 5% wholesale). 
- U.S. grew 3%, International up 9% (Asia +12%), with women's +9%, tops +9%, and shorts strong across genders.
- DTC-first strategy driving 40% U.S. DTC penetration, e-commerce +16% to 15% of total business.
- Holiday ready with expanded denim lifestyle assortment, Beyoncé campaign extension, and Shaboozey men's campaign.
- 2026 outlook: Mid-single-digit growth, 15% EBIT margin target with gross margin expansion and SG&A leverage.

**【CFO Financial Commentary】**
- Q3 net revenue +7% vs. +3% U.S., +12% Asia. Gross margin 61.7% (+110bps vs. prior year), driven by DTC mix, pricing, and FX.
- Adjusted EBIT margin 11.8%, EPS $0.34 (both ahead of expectations). Full year guidance raised: Organic +6%, EPS $1.27-$1.32 (+$0.02).
- Q4 guide: Revenue +1% (2-year stack +9%), gross margin -100bps due to tariffs, EPS $0.36-$0.38.
- Tariffs impact 2025 gross margin by 20bps, 2026 actions include pricing, promotion optimization, and supply chain diversification.
- Returned $283M to shareholders YTD, including $120M ASR.

**【Q&A Highlights】**
- **Europe momentum**: Q3 +3% (UK +mid-teens), prebooks +mid-single digits. No demand pullback despite macro concerns.
- **Tariff mitigation**: 2025 impact 70bps (mitigated to 20bps), 2026 actions include pricing, FX, and diversification.
- **Inventory**: +12% vs. prior year, 70% holiday product in U.S. Full-price selling up, promotions down.
- **Wholesale health**: U.S. +2%, global +5%. Growth driven by existing partners responding to newness, not new doors.
- **SKU rationalization**: -15% SKUs vs. prior year, 40% global common SKUs, +20% SKU productivity.
- **2026 margin path**: Gross margin expansion (structural mix, pricing), SG&A leverage, modest marketing reinvestment.

Levi Strauss & Co. (LEVI) Q3 2025 Earnings Call Transcript

- **Revenue Beat**: Q2 organic net revenue +9% (vs. 3.5%-4.5% prior guide), driven by 10% DTC growth and 7% wholesale.
- **Margin Expansion**: Gross margin 62.6% (record high), DTC EBIT margin +400bps YoY. Full year gross margin to expand 80bps.
- **Strategic Shifts**: Sold Dockers, exited low-margin businesses, focusing on Levi's DTC-first, denim lifestyle strategy.
- **Tariff Mitigation**: 20bps headwind offset by pricing, promotions, and diversification. Free cash flow $146M, $100M buyback announced.
- **Key Growth Drivers**: Women's +13%, tops +16%, Europe +15%, Beyond Yoga DTC +31%.


**【CEO Summary Section】**
- **Revenue Growth**: Q2 organic net revenue up 9%, driven by 10% DTC growth (13th consecutive quarter of positive comps) and 7% wholesale growth. Women's business up 13%, men's up 6%, tops up 16%.
- **Strategic Shifts**: 
  - DTC-first strategy: DTC now >50% of business, with improving margins (Q2 EBIT margin +400bps YoY).
  - Denim lifestyle expansion: Tops, dresses, outerwear, and non-denim bottoms growing faster than jeans.
  - Portfolio focus: Sold Dockers to Authentic Brands Group, exiting Denizen and footwear to concentrate on Levi's brand.
- **Product Innovation**: 
  - Baggy and loose fits (e.g., 578 Baggy) leading trend, linen denim collection, quiet Western aesthetic.
  - Collaborations with NIKE, Sacai, and Beyoncé driving brand relevance.
- **International Momentum**: Europe up 15%, Asia flat (due to strategic exits), U.S. up 7%. Beyond Yoga DTC up 31%.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - Q2 GAAP net revenue $1.5B, +9% YoY. Adjusted EBIT $123M, +37% YoY. Adjusted EPS $0.22, +37% YoY.
  - Gross margin 62.6%, +140bps YoY (record high), driven by lower product costs, channel mix, and full-price sales.
  - SG&A 54.4% of revenue, -50bps YoY (leverage on higher sales).
- **Tariff Impact**: 
  - Assumed 30% China tariffs and 10% global tariffs, leading to 20bps gross margin headwind. Mitigation strategies include pricing, promotions, and supply chain diversification.
- **Guidance Update**: 
  - Full year organic net revenue growth raised to 4.5%-5.5% (prev. 3.5%-4.5%).
  - Gross margin to expand 80bps YoY (record high). Adjusted EPS $1.25-$1.30 (prev. $1.20-$1.25).
- **Cash Flow**: Q2 free cash flow $146M. Announced $100M share buyback from Dockers sale proceeds.

**【Q&A Key Highlights】**
- **Margin Durability**: DTC EBIT margin +300bps Q2, driven by higher AURs and lower promotions. Gross margin expansion to continue despite tariffs.
- **Wholesale Outlook**: Order books positive, guided to flat to +Q2 growth. U.S. wholesale up 7%, Europe +23%.
- **Tariff Mitigation**: Pricing, promotion optimization, and supply chain diversification to offset 20bps headwind.
- **Asia Strategy**: Resetting China business, focusing on DTC growth in Japan, Turkey, and South Africa.
- **Loyalty Program**: 40M members globally, U.S. rollout in late Q3 to enhance personalization and AURs.


Levi Strauss & Co. (LEVI) Q2 2025 Earnings Call Transcript

- **9% Revenue Growth**: Driven by 12% DTC expansion and 5% wholesale gains, with US and international markets both accelerating.
- **Record Margins**: Gross margin hits 62.1%, EBIT margin up 400bps to 13.4%, fueled by full-price selling and cost control.
- **Brand Momentum**: Levi's share gains in women's (+12%) and DTC channels (52% of revenue), with viral product launches and 4.3B campaign impressions.
- **Tariff Readiness**: 1% China, 5% Mexico sourcing; evaluating cost, vendor, and pricing levers to mitigate impacts.
- **Long-Term Vision**: On track for $10B revenue with 15% margins, powered by DTC expansion to 55% of business.


**【CEO Summary Section】**
- Q1 organic net revenue grew 9%, driven by 12% DTC growth and 5% wholesale expansion. US business accelerated (+8%), while international markets (+9%) maintained momentum.
- Levi's brand share increased in both men's and women's categories, with women's net revenue up 12% and DTC channels accounting for 52% of total revenue.
- Strategic initiatives like the REIMAGINE campaign with Beyoncé generated $65M in earned media value, and new product launches (e.g., Cinch Baggy jeans) drove TikTok virality with 200M+ searches.
- Global Direct-to-Consumer EBIT margins expanded 500bps, reflecting improved store productivity and e-commerce growth (+16%).

**【CFO Financial Commentary】**
- Q1 GAAP net income: $181M; Non-GAAP EPS: $0.38 (vs. $0.25 prior year). Gross margin reached record 62.1%, up 330bps YoY due to lower product costs and full-price selling.
- Adjusted SG&A expenses rose 2% to $744M, but rate improved 70bps to 48.7%. Adjusted EBIT margin expanded 400bps to 13.4%.
- Inventory up 7% YoY, with spring/summer US orders secured. Q2 guidance: organic net revenue +3.5-4.5%, gross margin +80-100bps, EPS $0.11-0.13.

**【Q&A Key Highlights】**
- **Tariff Mitigation**: 1% of US imports from China, 5% from Mexico. Teams evaluating cost structure, vendor concessions, and surgical pricing.
- **Wholesale Resilience**: US wholesale +9% Q1, driven by lifestyle assortment expansion. Global wholesale expected flat for FY25.
- **Market Share**: Levi's gains in women's and 18-30 demographic; AURs up mid-single-digits in DTC.
- **Asia Recovery**: China flat Q1, but India and Japan DTC comps up double-digits.
- **Supply Chain Agility**: 28-country sourcing network; 3PL transition reducing distribution costs.


Levi Strauss & Co. (LEVI)-7 Apr 25-2025 Q1 Earnings call transcript

- **Record Growth & Margins**: 8% organic Q4 revenue, 60% gross margin (all-time high), and 13.4% EBIT margin.
- **Women's Dominance**: Became #1 U.S. women's denim brand, women's business up 12% Q4 to $2B annually.
- **DTC Acceleration**: 11 straight quarters of positive comps, 14% e-commerce growth, and 55%+ of revenue target for 2025.
- **2025 Vision**: 3.5-4.5% organic growth, 61% gross margin, and $1.20-1.25 EPS, driven by women's, DTC, and global expansion.
- **Risks & Challenges**: FX headwinds (250bps), China stabilization, and cautious wholesale approach.


**【CEO Summary Section】**
- **2024 Strategic Wins**: Focused on Levi's brand, exited Denizen and footwear, expanded DTC with 11 consecutive quarters of positive comps, and launched the Reimagine campaign with Beyoncé, driving women's business to $2B annually.
- **Q4 Financial Highlights**: 12% reported revenue growth, 8% organic growth, all-time high gross margin of 60%, and adjusted EBIT margin expansion to 13.4%.
- **2025 Outlook**: Target 3.5-4.5% organic revenue growth, 100bps gross margin expansion, and DTC as 55%+ of total revenue. Key drivers include women's denim leadership (now #1 in U.S.), loose/baggy fits, and global DTC expansion (33 new stores in Q4).

**【CFO Financial Commentary】**
- **Q4 Results**: GAAP net income $120M, adjusted EPS $0.50 (14% YoY growth). Full-year free cash flow >$600M, ROIC 14.9%.
- **2025 Guidance**: 3.5-4.5% organic revenue growth, 61% gross margin, 10.9-11.1% EBIT margin, and EPS $1.20-1.25. Key risks include FX (250bps headwind) and China stabilization.
- **DTC Profitability**: DTC EBIT margin expanded 380bps in FY24, driven by streamlined labor models, better inventory management, and e-commerce margins >10%.

**【Q&A Key Takeaways】**
- **Wholesale Channel**: Q4 up 3% globally, but 2025 guidance flat due to cautious approach post-pandemic volatility.
- **Denizen & Footwear**: Exiting $60M+ footwear business in 2025, final Denizen exit by mid-2025.
- **China Strategy**: Reorganized leadership, expects gradual recovery with 2025 growth modest.
- **Product Mix**: Tops now 40% of business, women's denim 36% share (target 50%), and non-denim bottoms growing in men's (XX Chino platform up 20%).
- **Dockers Sale**: $325M business with breakeven EBIT, sale expected in 2025.


Actual					0.4	-0.48	0.08	0.2	0.34	0.23	0.48	0.41	0.46	0.29	0.4	0.34	0.34	0.04	0.28	0.44	0.26	0.16	0.33	0.5	0.38	0.22	0.34	0.41
Forecast					0.3493	-0.4762	-0.2207	0.155	0.2402	0.0919	0.3751	0.4002	0.4178	0.2281	0.3765	0.2922	0.3219	0.03	0.2703	0.4298	0.2067	0.1076	0.3116	0.4821	0.2781	0.1341	0.306	0.3914	0.3674
Surprise	0.00%	0.00%	0.00%	0.00%	+14.51%	-0.80%	+136.25%	+29.03%	+41.55%	+150.27%	+27.97%	+2.45%	+10.10%	+27.14%	+6.24%	+16.36%	+5.62%	+33.33%	+3.59%	+2.37%	+25.79%	+48.70%	+5.91%	+3.71%	+36.64%	+64.06%	+11.11%	+4.75%	0.00%

LEVI

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LEVI Q1 2026 Earnings Preview

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LEVI

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LEVI Q1 2026 Earnings Preview

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LEVI Earnings Call Summary for Q1/20255:00 PM on Apr 7, 2025

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