US denim specialist Levi Strauss & Co. has announced financial results for the third quarter ended August 31, 2025. Net sales were 1.5 billion US dollars (1.30 billion euros). This represents an increase of seven percent year-over-year on both a reported and organic basis.
The company’s performance was highlighted by significant growth in Asia. Sales there increased by twelve percent on a reported and organic basis. The direct-to-consumer (DTC) channel also contributed significantly to its success. Here, net sales rose by eleven percent on a reported basis and by nine percent organically. The DTC channel therefore accounted for 46 percent of total net sales.
Chief Executive Officer (CEO) Michelle Gass commented on the strong results and outlook: “Thanks to strength across all channels, segments and categories, we are raising our full-year guidance and are well positioned for the holiday season.”
Levi Strauss raises forecast after strong third quarter
The company’s net sales in the Americas increased six percent on a reported basis and seven percent on an organic basis. Within this region, the USA grew organically by three percent. In Europe, net sales increased five percent on a reported basis and three percent on an organic basis. Wholesale net sales increased three percent on a reported basis and five percent on an organic basis.
Gass attributed the results to the company’s strategic realignment: “We completed another very strong quarter. Our realignment as a DTC-focused head-to-toe denim lifestyle provider is driving a significant turnaround in our financial performance.” She added that the consistency of the company’s performance gives her “confidence that we will deliver sustainable, profitable growth through 2026 and beyond.”
Chief Financial Officer (CFO) Harmit Singh underscored the strength of the transformation. He noted that third-quarter performance “exceeded expectations across all key metrics, including revenue, gross margin, adjusted margin and adjusted diluted earnings per share.”
After this strong quarter, the company raised its guidance for the full fiscal year 2025. It now expects reported net sales growth of about three percent, up from the previous one to two percent. Organic net sales growth is estimated at around six percent, instead of the previous 4.5 to 5.5 percent. Adjusted diluted earnings per share were also increased to a range of $1.27 to $1.32. The company’s forecast assumes U.S. tariffs on imports from China will remain at 30 percent for the remainder of the year.
Shareholder returns and restructuring
The company distributed around $151 million to shareholders in the quarter. This corresponds to an increase of 118 percent compared to the previous year. The distribution was primarily through dividends and the launch of an accelerated share repurchase program worth $120 million.
As part of the restructuring, the Company completed the sale of Dockers’ intellectual property and operations in the United States and Canada on July 31, 2025. Gross proceeds were $194.7 million. The sale of the remaining Dockers businesses is expected to close in the first quarter of 2026.
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