Levi Strauss & Co. (LEVI) Q3 2025 Financial Results Summary
On October 9, 2025, Levi Strauss & Co. (NYSE: LEVI) released its financial results for the third quarter ended August 31, 2025. The report featured strong sales, margins, and earnings per share (EPS) exceeding guidance.
Financial Highlights
- Net Revenues:
- Total net revenues of $1.5 billion, representing a 7% increase from Q3 2024.
- Americas: 6% increase reported and 7% increase organically.
- U.S. growth: 3% organic.
- Europe: 5% increase reported and 3% increase organically.
- Asia: 12% increase reported and organic.
- DTC (Direct-to-Consumer):
- DTC net revenues grew 11% reported and 9% organically.
- E-commerce grew 18% reported and 16% organically.
- DTC accounts for 46% of total net revenues.
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Wholesale: 3% increase reported and 5% increase organically.
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Operating Income:
- Operating margin at 10.8%, up from 2.3% in Q3 2024.
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Adjusted EBIT margin at 11.8%, slightly down from 12.3% year-over-year due to higher SG&A expenses.
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Gross Margin: Increased by 110 basis points to 61.7% from 60.6% in Q3 2024.
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Expenses:
- Selling, general and administrative (SG&A) expenses increased 6.8% to $776 million.
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Adjusted SG&A was up 10.5% to $769 million. Adjusted SG&A as a percentage of sales was 49.8%.
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Net Income:
- Net income from continuing operations: $122 million, compared to $23 million in Q3 2024.
- Adjusted net income was $136 million, compared to $134 million the previous year.
- Diluted EPS from continuing operations: $0.31, up from $0.06 in Q3 2024.
- Adjusted diluted EPS: $0.34, compared to $0.33 in Q3 2024.
Shareholder Returns
- Levi Strauss & Co. returned approximately $151 million to shareholders in Q3 2025, representing an increase of 118% over the prior year.
- Dividends:
- Distributed $55 million in dividends, equating to $0.14 per share.
- Share Repurchase:
- Launched a $120 million accelerated share repurchase program, retiring about 5 million shares.
- Remaining shares to be settled at the end of the program.
- $440 million remains under the current share repurchase authorization.
Balance Sheet Overview (as of August 31, 2025)
- Cash and cash equivalents: $613 million
- Total liquidity: Approximately $1.5 billion
- Total inventories increased by 12% compared to Q3 2024.
Updated Fiscal 2025 Guidance
- Reported net revenue growth: Raised to approximately 3%, up from 1%-2%.
- Organic net revenue growth: Raised to approximately 6%, up from 4.5%-5.5%.
- Gross margin: Expected to expand by 100 basis points, up from 80 basis points.
- Adjusted diluted EPS: Raised to $1.27 to $1.32, up from $1.25 to $1.30.
This detailed earnings report illustrates Levi Strauss & Co.’s growth trajectory and strategic focus on becoming a leading DTC-first retailer while navigating a complex macroeconomic environment.
CONSOLIDATED STATEMENTS OF INCOME
(The amounts are in millions)
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| August 31, 2025 | August 25, 2024 | August 31, 2025 | August 25, 2024 | |
| Net revenues | $1,543.4 | $1,443.1 | $4,516.2 | $4,282.1 |
| Cost of goods sold | 591.8 | 569.2 | 1,711.2 | 1,706.0 |
| Gross profit | 951.6 | 873.9 | 2,805.0 | 2,576.1 |
| Selling, general and administrative expenses | 775.6 | 726.4 | 2,313.4 | 2,233.4 |
| Restructuring charges, net | 8.6 | 3.4 | 22.1 | 171.6 |
| Goodwill and other intangible asset impairment charges | — | 111.4 | 2.5 | 116.9 |
| Operating income | 167.4 | 32.7 | 467.0 | 54.2 |
| Interest expense | -12.5 | -10.1 | -35.2 | -30.4 |
| Other income (expense), net | 1.3 | -0.4 | 3.5 | -2.3 |
| Income from continuing operations | 156.2 | 22.2 | 435.3 | 21.5 |
| Income tax expense (benefit) | 34.2 | -0.5 | 93.5 | -8.5 |
| Net income from continuing operations | 122.0 | 22.7 | 341.8 | 30.0 |
| Net income (loss) from discontinued operations, net of taxes | 96.1 | -2.0 | 78.3 | -2.0 |
| Net income | $218.1 | $20.7 | $420.1 | $28.0 |
| Earnings (loss) per common share: | ||||
| Continuing operations – Basic | $0.31 | $0.06 | $0.87 | $0.08 |
| Discontinued operations – Basic | 0.24 | -0.01 | 0.19 | -0.01 |
| Net income – Basic | $0.55 | $0.05 | $1.06 | $0.07 |
| Continuing operations – Diluted | $0.31 | $0.06 | $0.86 | $0.07 |
| Discontinued operations – Diluted | 0.24 | -0.01 | 0.19 | — |
| Net income – Diluted | $0.55 | $0.05 | $1.05 | $0.07 |
| Weighted-average common shares outstanding: | ||||
| Basic | 395,659,040 | 398,187,049 | 396,578,375 | 398,642,455 |
| Diluted | 399,529,649 | 402,398,064 | 400,401,333 | 402,848,679 |
CONSOLIDATED BALANCE SHEETS
(The amounts are in millions)
| ASSETS | August 31, 2025 | December 1, 2024 |
|---|---|---|
| Current Assets: | ||
| Cash and cash equivalents | $612.8 | $690.0 |
| Short-term investments in marketable securities | 94.7 | — |
| Trade receivables, net | 722.9 | 710.0 |
| Inventories | 1,286.3 | 1,131.3 |
| Other current assets | 232.4 | 211.7 |
| Current assets held for sale | 57.7 | 108.1 |
| Total current assets | 3,006.8 | 2,851.1 |
| Property, plant and equipment, net | 677.4 | 687.4 |
| Goodwill | 278.8 | 277.6 |
| Other intangible assets, net | 194.7 | 196.6 |
| Deferred tax assets, net | 808.1 | 798.5 |
| Operating lease right-of-use assets, net | 1,129.7 | 1,065.5 |
| Other non-current assets | 541.8 | 463.9 |
| Non-current assets held for sale | 19.1 | 34.9 |
| Total assets | $6,656.4 | $6,375.5 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $621.4 | $663.4 |
| Accrued salaries, wages and employee benefits | 224.5 | 234.2 |
| Accrued sales returns and allowances | 212.5 | 193.4 |
| Short-term operating lease liabilities | 261.1 | 247.4 |
| Other accrued liabilities | 659.5 | 672.1 |
| Total current liabilities | 1,979.0 | 2,010.5 |
| Long-term debt | 1,042.8 | 994.0 |
| Long-term operating lease liabilities | 987.1 | 943.0 |
| Long-term employee related benefits and other liabilities | 484.8 | 457.5 |
| Total liabilities | 4,493.7 | 4,405.0 |
| Commitments and contingencies | ||
| Stockholders’ Equity: | ||
| Common stock — $0.001 par value; 1,200,000,000 Class A shares authorized, 102,602,359 shares and 103,984,741 shares issued and outstanding as of August 31, 2025 and December 1, 2024, respectively; and 422,000,000 Class B shares authorized, 288,227,197 shares and 291,411,568 shares issued and outstanding, as of August 31, 2025 and December 1, 2024, respectively | 0.4 | 0.4 |
| Additional paid-in capital | 761.2 | 732.6 |
| Retained earnings | 1,806.4 | 1,672.0 |
| Accumulated other comprehensive loss | -405.3 | -434.5 |
| Total stockholders’ equity | 2,162.7 | 1,970.5 |
| Total liabilities and stockholders’ equity | $6,656.4 | $6,375.5 |
