M
ME NEWS
08 Apr 2025, 05:47
Levi Strauss & Co. Posts Strong Q1 2025 Earnings, Raises Profitability Despite Uncertain Market
SAN FRANCISCO – April 7, 2025 – Levi Strauss & Co. (NYSE: LEVI) exceeded market expectations for the first quarter of fiscal 2025, reporting solid revenue growth and a significant boost in profitability, according to results announced today. The company posted net revenues of $1.53 billion, up 3% year-over-year on a reported basis and 9% on an organic basis, with particularly strong growth in the Levi’s® and Beyond Yoga® brands.
Key Financial Highlights (Continuing Operations):
Adjusted EBIT margin rose 400 basis points to 13.4%, driven by improved gross margins and disciplined cost management.
Adjusted diluted EPS climbed to $0.38, marking a 52% increase year-over-year.
Operating margin reached 12.5%, compared to just 0.04% a year prior.
Net income from continuing operations surged to $140 million, up from a $10 million loss in Q1 2024.
CEO Michelle Gass attributed the performance to “the strength of the Levi’s® brand and successful execution of our transformation strategy,” while CFO Harmit Singh noted ongoing momentum into March and maintained the company’s full-year guidance despite recently announced tariffs.
Regional Performance:
Americas: Revenues grew 11% organically, with the U.S. up 8%.
Europe: Organic growth of 3%, despite a 5% reported decline.
Asia: Revenues jumped 10% organically, 7% reported.
Direct-to-Consumer (DTC): Up 12% organically, now comprising 52% of total revenues.
Wholesale: Declined 3% reported, but grew 5% on an organic basis.
Dockers® Discontinued
The Dockers® business was reclassified as discontinued operations in Q1, with plans to divest by year-end. Results from prior quarters were recast accordingly.
Balance Sheet & Shareholder Returns:
Cash & equivalents stood at $574 million; liquidity near $1.4 billion.
Returned $81 million to shareholders in Q1 via dividends and buybacks.
Declared a $0.13 per share dividend payable May 9, 2025.
FY 2025 Guidance (Excludes Tariff Impact):
Organic revenue growth: 3.5% to 4.5%.
Adjusted EBIT margin: 11.4% to 11.6%.
Adjusted EPS: $1.20 to $1.25.
Despite macro uncertainties including tariffs, FX headwinds, and inflation, Levi Strauss remains confident in its global strategy, citing robust DTC expansion, cost discipline, and brand equity.
SAN FRANCISCO – April 7, 2025 – Levi Strauss & Co. (NYSE: LEVI) exceeded market expectations for the first quarter of fiscal 2025, reporting solid revenue growth and a significant boost in profitability, according to results announced today. The company posted net revenues of $1.53 billion, up 3% year-over-year on a reported basis and 9% on an organic basis, with particularly strong growth in the Levi’s® and Beyond Yoga® brands.
Key Financial Highlights (Continuing Operations):
Adjusted EBIT margin rose 400 basis points to 13.4%, driven by improved gross margins and disciplined cost management.
Adjusted diluted EPS climbed to $0.38, marking a 52% increase year-over-year.
Operating margin reached 12.5%, compared to just 0.04% a year prior.
Net income from continuing operations surged to $140 million, up from a $10 million loss in Q1 2024.
CEO Michelle Gass attributed the performance to “the strength of the Levi’s® brand and successful execution of our transformation strategy,” while CFO Harmit Singh noted ongoing momentum into March and maintained the company’s full-year guidance despite recently announced tariffs.
Regional Performance:
Americas: Revenues grew 11% organically, with the U.S. up 8%.
Europe: Organic growth of 3%, despite a 5% reported decline.
Asia: Revenues jumped 10% organically, 7% reported.
Direct-to-Consumer (DTC): Up 12% organically, now comprising 52% of total revenues.
Wholesale: Declined 3% reported, but grew 5% on an organic basis.
Dockers® Discontinued
The Dockers® business was reclassified as discontinued operations in Q1, with plans to divest by year-end. Results from prior quarters were recast accordingly.
Balance Sheet & Shareholder Returns:
Cash & equivalents stood at $574 million; liquidity near $1.4 billion.
Returned $81 million to shareholders in Q1 via dividends and buybacks.
Declared a $0.13 per share dividend payable May 9, 2025.
FY 2025 Guidance (Excludes Tariff Impact):
Organic revenue growth: 3.5% to 4.5%.
Adjusted EBIT margin: 11.4% to 11.6%.
Adjusted EPS: $1.20 to $1.25.
Despite macro uncertainties including tariffs, FX headwinds, and inflation, Levi Strauss remains confident in its global strategy, citing robust DTC expansion, cost discipline, and brand equity.
