US' Levi Strauss posts 7% YoY Q3 revenue growth, raises FY25 outlook

The regional growth was led by Asia (up 12 per cent), followed by the Americas (up 6 per cent) and Europe (up 5 per cent). Meanwhile, Beyond Yoga reported net revenues of $33 million, up 2.5 per cent.

The direct-to-consumer (DTC) net revenues increased 11 per cent on a reported basis and 9 per cent on an organic basis. DTC growth on an organic basis reflected a 7 per cent increase in the US, a 4 per cent increase in Europe and a 14 per cent increase in Asia. Net revenues from e-commerce grew 18 per cent on a reported basis and 16 per cent on an organic basis. DTC comprised 46 per cent of total net revenues in Q3. Wholesale net revenues increased 3 per cent on a reported basis and 5 per cent on an organic basis.

The operating margin rose to 10.8 per cent from 2.3 per cent a year earlier, while gross margin improved 110 basis points (bps) to 61.7 per cent. The net income from continuing operations surged to $122 million from $23 million, while adjusted net income stood at $136 million. Diluted earnings per share (EPS) from continuing operations rose to $0.31 from $0.06.

“We delivered another very strong quarter as our pivot to becoming a DTC-first, head-to-toe denim lifestyle retailer is driving a meaningful inflection in our financial performance,” said Michelle Gass, president and CEO at Levi Strauss. “With strength across channels, segments and categories, we are raising our full-year outlook and are well-positioned for the holiday season.”

“Our Q3 results demonstrate the power of our strategic transformation, with strong financial performance exceeding expectations across all key metrics including sales, gross margin, adjusted EBIT margin and adjusted diluted EPS,” said Harmit Singh, chief financial and growth officer of Levi Strauss & Co. “With four consecutive quarters of high-single-digit growth and record gross margins driven by our focus on profitability across the organisation, we are raising our full-year revenue and adjusted diluted EPS expectations. We have built strong momentum that positions us well to continue delivering strong shareholder value in the years to come.”

For the full fiscal 2025, Levi Strauss & Co has raised its net revenue outlook, now expecting growth of 3 per cent—up from the earlier forecast of 1 to 2 per cent. The company also anticipates organic net revenue growth of about 6 per cent, compared to the prior projection of 4.5 to 5.5 per cent. The gross margin expansion has been revised upward to 100 bps from 80 bps, with the adjusted EBIT margin maintained between 11.4 and 11.6 per cent. The effective tax rate remains at approximately 23 per cent, and adjusted diluted earnings per share have been raised to a range of $1.27 to $1.32, up from the earlier $1.25 to $1.3.

ALCHEMPro News Desk (SG)