What factors drove the changes in Levi Strauss's revenue and profit?

What guidance did Levi Strauss's management provide for the next earnings period?

What is the market's earnings forecast for Levi Strauss next quarter?

What were the key takeaways from Levi Strauss's earnings call?

What does Levi Strauss do and what are its main business segments?

Did Levi Strauss beat or miss consensus estimates last quarter?

What is Levi Strauss's gross profit margin?

What were the key takeaways from Levi Strauss’s earnings call?

- **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.


LEVI

LEVI fundamentals

Earnings Call

You can ask Aime