US denim giant Levi Strauss & Co. (LS&Co.) has reported a four percent increase in reported net sales to $6.30 billion (approximately €5.26 billion) for the fiscal year ending November 30, 2025. On an organic basis, the group recorded growth of seven percent compared to the previous year. The effects of currency fluctuations and sales are excluded.
The company says it has reached a turning point in its transformation into a direct-to-consumer denim lifestyle brand. Under the leadership of President and Chief Executive Officer (CEO) Michelle Gass, the group has sharpened its operational focus and strengthened the core Levi’s brand.
“We have sharpened our focus, improved operational execution and built greater agility across the organization,” explained Gass. She emphasized that these measures have led to faster growth and higher profitability. The company is now in a position to define its next chapter.
Fourth quarter performance driven by international growth
In the fourth quarter, net sales reached $1.80 billion. This corresponds to an increase of one percent on a reported basis and organic growth of five percent. The results were supported by a strong performance in Europe, where sales grew 10 percent on an organic basis. An organic increase of four percent was achieved in Asia.
In North and South America, reported net sales fell by four percent. However, from an organic perspective, they increased by two percent. The US market experienced a seven percent decline in sales on a reported basis, but remained stable on an organic basis. Beyond Yoga, the group’s activewear brand, achieved a significant increase in sales of 37 percent on a reported basis in the reporting period.
Direct-to-consumer (DTC) net sales, a key strategic priority for the company, grew eight percent on a reported basis and ten percent organically. This segment accounted for 49 percent of total net sales in the quarter. E-commerce developed particularly robustly with organic growth of 22 percent.
Profitability and margin expansion
The adjusted margin of earnings before interest and taxes (EBIT margin) for the full year reached 11.40 percent. In the 2024 financial year it was still 10.70 percent. The gross margin for the full year was 61.70 percent, increasing by 110 basis points compared to the previous year.
In the fourth quarter, the adjusted EBIT margin was 12.10 percent, after 13.90 percent in the same period last year. The decline was justified by the comparison to a 53rd week in the previous year and by the introduction of tariffs. Net income from continuing operations increased significantly to $502 million for the full year, from $210 million in fiscal 2024.
Strategic divestitures and shareholder returns
On July 31, 2025, the Company completed the sale of Dockers’ intellectual property rights and operations in the United States and Canada. The remaining global operations of the Dockers brand are expected to be divested by February 27, 2026. This move allows the group to focus more of its resources on its primary denim and activewear portfolios.
The return of capital to shareholders was increased by 26 percent compared to the previous year to a total of $363 million. Of this, $213 million was attributable to dividends and $150 million to share buybacks. Additionally, a new $200 million accelerated share repurchase program was announced.
Chief Financial and Growth Officer Harmit Singh was confident about the course we have taken: “Our disciplined approach to converting growth into profitability has improved the adjusted EBIT margin for the third consecutive time in 2025. We are on track to further expand margins as we aim for the 15 percent mark.”
Outlook for the 2026 financial year
LS&Co. has published guidance for the fiscal year ending November 29, 2026, based on continuing operations. The company expects reported net sales growth of five to six percent. Organic growth is forecast at four to five percent.
The adjusted EBIT margin is expected to continue to rise to 11.80 to 12.00 percent. This forecast assumes U.S. tariffs on imports from China will remain at 30 percent and 20 percent for the rest of the world. Adjusted diluted earnings per share are estimated at $1.40 to $1.46.
This article was created using digital tools translated.
FashionUnited uses artificial intelligence to speed up the translation of articles and improve the end result. They help us to make FashionUnited’s international reporting quickly and comprehensively accessible to a German-speaking readership. Articles translated using AI-based tools are proofread and carefully edited by our editors before they are published. If you have any questions or comments, please email [email protected]
