Financial Data and Key Metrics Changes - In Q3, the company achieved a net revenue growth of 7%, with international markets contributing approximately 75% of this growth and the U.S. contributing 25% [17][18] - Gross margin reached a record 61.7%, expanding 110 basis points year-over-year, despite an 80 basis point headwind from tariffs [19][20] - Adjusted EBIT margin was 11.8%, with adjusted diluted EPS at $0.34, both exceeding expectations and reflecting a year-to-date growth of approximately 25% [21][28] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) sales increased by 9%, with a strong performance in both stores and online, while wholesale net revenues grew by 5% [11][13] - Women's business grew by 12% year-to-date, while men's business saw a solid growth of 5% in Q3 [9][10] - The tops category experienced notable growth, with overall tops up 9% for the quarter and 10% year-to-date [82] Market Data and Key Metrics Changes - The U.S. market grew by 3%, while international business saw a 9% increase, driven by strong performance in Asia [6][14] - In Europe, net revenues were up 3%, with key markets like the U.K. showing high mid-teen growth [22][33] - Asia's net revenues accelerated to a 12% increase, with double-digit growth in both DTC and wholesale channels [22][23] Company Strategy and Development Direction - The company is pivoting to a DTC-first strategy, focusing on becoming a head-to-toe denim lifestyle retailer, which is expected to drive growth [5][7] - Continued investment in impactful marketing campaigns and strategic partnerships is aimed at enhancing brand relevance and expanding market share [6][8] - The company is also focusing on premiumization efforts, with the rollout of the elevated Blue Tab collection [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum, citing a strong product pipeline and effective marketing strategies [6][16] - Despite a complex macro environment, management anticipates continued strong performance and growth opportunities, particularly in international markets [16][28] - The company raised its full-year revenue and EPS guidance, reflecting optimism about future performance [17][27] Other Important Information - The company returned $151 million to shareholders in Q3, marking a 118% increase year-over-year, and declared a dividend of $0.14 per share, up 8% from the previous year [23][24] - Inventory levels were up 12% in dollar terms, driven by investments ahead of the holiday season and higher product costs due to tariffs [24] Q&A Session Summary Question: European momentum and pre-books for next spring - Management noted that Europe grew 3% in Q3, with strong performance in key markets and positive pre-book trends for spring [31][32] Question: Momentum entering the season and demand trends - Management confirmed no material change in demand trends, emphasizing strong underlying business momentum [41][42] Question: Wholesale business growth drivers - Growth in the wholesale channel was primarily driven by existing accounts responding positively to the expanded product pipeline [65][66] Question: Sustainability of low single-digit growth in the Americas - Management expects continued positive growth in DTC, while U.S. wholesale may see a decline due to strong prior year comparisons [70][72] Question: Lifestyle offering growth rates and AUR opportunities - The tops business saw significant growth, with management confident in further expanding this category and improving average unit retail (AUR) [80][84]

Financial Data and Key Metrics Changes - In Q3, the company reported a net revenue growth of 7%, with international markets contributing approximately 75% of this growth and the U.S. contributing 25% [17][18] - Gross margin reached a record 61.7%, expanding 110 basis points year-over-year, despite an 80 basis point headwind from tariffs [19][20] - Adjusted EBIT margin was 11.8%, with adjusted diluted EPS at $0.34, both exceeding expectations [21] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) sales grew 9%, driven by strong performance in both stores and online, with e-commerce up 16% [11][12] - Women's business grew 12% year-to-date, while men's business grew 5% [9][10] - The tops category saw notable growth, with overall tops up 9% and women's tops up 8% [81] Market Data and Key Metrics Changes - The U.S. market grew 3%, while international business was up 9%, led by double-digit growth in Asia [6][14] - In Europe, net revenues increased by 3%, with strong performance in the UK [22] - Asia's net revenues accelerated to up 12%, with double-digit growth in both DTC and wholesale [22] Company Strategy and Development Direction - The company is pivoting to a DTC-first strategy, focusing on becoming a head-to-toe denim lifestyle retailer [5][7] - Continued investment in marketing campaigns and strategic partnerships is aimed at enhancing brand relevance and expanding market share [6][7] - The company is also focusing on premiumization efforts, rolling out the Blue Tab premium collection [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum despite a complex external environment, citing strong consumer demand and effective strategies [16][45] - The company anticipates continued growth in the denim category and plans to leverage its market leadership to capture more share [42][45] - For Q4, the company expects organic net revenue growth of approximately 1%, with reported net revenues down about 3% due to non-comparable items [26][27] Other Important Information - The company returned $151 million to shareholders in Q3, a 118% increase year-over-year, and declared a dividend of $0.14 per share, up 8% [23][24] - Inventory levels were up 12% in dollar terms, driven by investments ahead of the holiday season [24] Q&A Session Summary Question: European momentum and Q4 guidance - Management noted that Europe grew 3% in Q3, with strong performance in key markets like the UK and Germany, and expects mid-single-digit growth for the year [32][33] - Q4 guidance reflects the impact of the 53rd week and tariffs, with a conservative approach due to macro uncertainties [35] Question: Momentum entering the season - Management confirmed no material change in demand trends, emphasizing strong positioning for the holiday season [41][42] Question: Wholesale business growth drivers - Growth in the wholesale channel was driven by existing accounts responding positively to fashion fits, with women's business outperforming [65][66] Question: SKU rationalization and inventory management - The company has reduced SKUs by about 15% compared to last year while expanding its lifestyle assortment, leading to higher productivity per SKU [74][75]

Financial Data and Key Metrics Changes - In Q3, the company achieved a net revenue growth of 7%, with international markets contributing approximately 75% of this growth and the U.S. contributing 25% [17] - Gross margin reached a record 61.7%, expanding 110 basis points year-over-year, despite an 80 basis point headwind from tariffs [18][19] - Adjusted EBIT margin was 11.8%, with adjusted diluted EPS at $0.34, both exceeding expectations [21] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) sales increased by 9%, driven by strong performance in both stores and online, with e-commerce growing 16% [12][13] - Women's business grew 12% year-to-date, while men's business grew 5% [9] - The bottoms business saw a 6% increase, and tops grew 9% overall, with notable strength in women's tops [10][70] Market Data and Key Metrics Changes - The U.S. market grew 3%, while international business was up 9%, led by double-digit growth in Asia [5][14] - In Europe, net revenues increased by 3%, with strong performance in the UK [22] - Asia's net revenues accelerated to a 12% increase, driven by double-digit growth in key markets like India, Japan, and Korea [22] Company Strategy and Development Direction - The company is pivoting to a DTC-first strategy, focusing on becoming a head-to-toe denim lifestyle retailer [4][6] - Continued investment in impactful marketing campaigns and strategic partnerships is expected to drive brand momentum [5][6] - The company aims to expand its addressable market by defining and owning the denim lifestyle category [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum, citing a strong product pipeline and robust consumer demand [5][16] - Despite a complex macro environment, the company anticipates a strong finish to 2025 and continued growth into 2026 [16][28] - The company is taking a prudent approach to its Q4 outlook, expecting organic net revenue growth of approximately 1% [26] Other Important Information - The company returned $151 million to shareholders in Q3, a 118% increase year-over-year, and declared a dividend of $0.14 per share, up 8% [23][24] - Inventory levels were up 12% in dollar terms, driven by investments ahead of the holiday season [24] Q&A Session Summary Question: European momentum and Q4 guidance - Management noted that Europe grew 3% in Q3, with strong performance in key markets and positive pre-booking for spring [31][32] - Q4 guidance reflects a conservative approach due to the complex macro environment, with expected gross margin impacts from tariffs and the absence of a 53rd week [34] Question: Momentum entering the season and demand trends - Management confirmed no material change in demand trends, emphasizing strong positioning in the denim category [39][40] Question: Wholesale business growth drivers - Growth in the wholesale channel was driven by existing accounts responding positively to fashion fits, with new distribution points contributing as well [55] Question: Inventory management and SKU rationalization - The company has reduced SKUs by about 15% compared to last year while expanding its lifestyle assortment [63][64]

Core Viewpoint - Levi Strauss raised its full-year profit forecast but it fell short of Wall Street expectations, leading to a 6% decline in shares during premarket trading [1] Group 1: Financial Performance - The company now expects fiscal-year 2025 adjusted profit per share in the range of $1.27 to $1.32, an increase from the previous forecast of $1.25 to $1.30, but the midpoint is below the analyst estimate of $1.31 [1] - Levi Strauss reported a 7% rise in net revenue for the quarter ended August 31 to $1.54 billion, surpassing analysts' estimate of $1.50 billion [4] - Adjusted profit came in at 34 cents per share, up from 33 cents per share in the same period last year [5] Group 2: Impact of Tariffs - The forecast assumes U.S. tariffs will remain at 30% for China and 20% for other countries through the year-end [2] - Tariffs impacted the company's gross margins by 80 basis points in the reported quarter, with an expected impact of 130 basis points in the fourth quarter [2] Group 3: Strategic Initiatives - The company has undertaken modest price hikes and secured inventory ahead of the key holiday season to mitigate disruptions from volatile trade policies [3] - Levi has focused on full-price sales through its direct-to-consumer channel, broadened product offerings, and maintained tight control over stock-keeping units (SKUs) [3] Group 4: Market Demand - Robust international demand helped cushion some tariff pain, with quarterly revenues in Asia and Europe growing 12% and 5%, respectively [4] - Globally, direct-to-consumer sales witnessed 9% growth, while online sales jumped 16% [4] - Operating margin improved to 10.8% from 2.3% a year earlier, driven by higher direct-to-consumer and full-price sales [5]

Core Insights - Levi Strauss & Co. reported strong third-quarter earnings, with earnings per share of 34 cents, surpassing the consensus estimate of 31 cents [2] - Quarterly revenue reached $1.54 billion, exceeding the analyst consensus of $1.5 billion and up from $1.44 billion in the same quarter last year [2] Q3 Performance - The company highlighted a significant pivot towards a Direct-to-Consumer (DTC) model, which is positively impacting financial performance [3] - DTC net revenues increased by 11% on a reported basis and 9% on an organic basis, with notable growth in the U.S. (7%), Europe (4%), and Asia (14%) [5] - E-commerce revenues grew by 18% on a reported basis and 16% on an organic basis, with DTC accounting for 46% of total net revenues in Q3 [5] - Wholesale net revenues saw a 3% increase on a reported basis and 5% on an organic basis [5] Outlook - The company raised its fiscal year 2025 adjusted EPS guidance to a range of $1.27 to $1.32, compared to the analyst estimate of $1.31 [5] - Revenue outlook was also increased to a new range of $6.48 billion to $6.59 billion, surpassing the previous estimate of $6.16 billion [5] - The CEO expressed confidence in the company's positioning for the upcoming holiday season [4]

Core Insights - Levi Strauss & Co. reported fiscal third-quarter results that exceeded expectations [1] - The company raised its full-year outlook despite facing a potentially tougher tariff environment [1] - Shares of the denim giant fell in after-hours trading following the earnings report [1] Financial Performance - The fiscal third-quarter results surpassed market expectations [1] - The company has adjusted its full-year outlook positively, indicating confidence in future performance [1] Market Reaction - Despite strong earnings and an optimistic outlook, shares of Levi Strauss & Co. declined after the announcement [1]

Core Insights - Levi Strauss reported better-than-expected results for the third quarter and raised its outlook for the year despite a complex macroeconomic climate and higher-than-anticipated tariffs on imported merchandise [2] Financial Performance - The company demonstrated strength across various channels, segments, and categories, indicating robust operational performance [2]

Core Insights - Levi Strauss's profits exceeded Wall Street expectations due to targeted price increases and a shift away from wholesalers [1][4] - The company reported a gross margin increase of 1.1 percentage points to 61.7%, surpassing analyst expectations [2][8] - Levi's raised its full-year sales outlook to a 3% increase, up from a previous guidance of 1% to 2% growth [7] Financial Performance - Net income for the quarter ending August 31 was $218 million, or 55 cents per share, compared to $20.7 million, or 5 cents per share, a year earlier [6] - Sales rose to $1.54 billion, a 7% increase from $1.44 billion in the previous year [6][10] - Adjusted earnings per share were 34 cents, exceeding the expected 31 cents [10] Strategic Initiatives - The company is focusing on direct-to-consumer sales, which grew 11% during the quarter, and expanding its product range beyond jeans [11][12] - Women's clothing sales increased by 9%, contributing to the overall growth [12][13] - Non-denim items now account for nearly 40% of the business, indicating a successful diversification strategy [13] Market Outlook - Levi's expects its operating margin to be between 11.4% and 11.6%, aligning with market expectations [8] - The company anticipates a gross margin increase of 1 percentage point, returning to its original outlook before factoring in tariffs [9][8] - The outlook remains contingent on the stability of U.S. tariffs on imports from China and other duties [9]

[Executive Summary & Q3 2025 Performance Overview](index=1&type=section&id=Executive%20Summary%20%26%20Q3%202025%20Performance%20Overview) Levi Strauss & Co. delivered strong Q3 2025 results, exceeding guidance and demonstrating significant financial improvements driven by strategic shifts [Key Highlights and Management Commentary](index=1&type=section&id=Key%20Highlights%20and%20Management%20Commentary) Levi Strauss & Co. reported strong third-quarter 2025 financial results, exceeding guidance for sales, margins, and EPS. The company's strategic pivot to a DTC-first, head-to-toe denim lifestyle retailer is driving significant financial performance improvements, leading to a raised full-year outlook - Q3 2025 results exceeded guidance for sales, margins, and EPS[2](index=2&type=chunk) - Reported and organic net revenues both increased by **7%**[2](index=2&type=chunk) - The company is raising its full-year net revenue and EPS outlook, including the updated impact of tariffs[2](index=2&type=chunk) - CEO Michelle Gass highlighted the pivot to a DTC-first, head-to-toe denim lifestyle retailer as a key driver of financial performance inflection[2](index=2&type=chunk) - CFO Harmit Singh noted four consecutive quarters of high-single-digit growth and record gross margins, driven by a focus on profitability[2](index=2&type=chunk) [Q3 2025 Financial Performance Summary](index=1&type=section&id=Q3%202025%20Financial%20Performance%20Summary) The company achieved significant growth in net revenues and profitability in Q3 2025, with strong improvements in operating income and net income compared to the prior year. Gross margin expanded, though adjusted EBIT margin saw a slight decrease due to higher SG&A Q3 2025 Key Financial Metrics (vs. Q3 2024) | Metric | Q3 2025 | Q3 2024 | Change (Reported) | Change (Organic/Adjusted) | | :-------------------------------- | :------ | :------ | :---------------- | :-------------------------- | | Net Revenues | $1.5B | $1.443B | +7% | +7% | | Operating Income | $167.4M | $32.7M | +412% | N/A | | Net Income from Continuing Operations | $122M | $23M | +430% | N/A | | Adjusted Net Income | $136M | $134M | +1% | (1)% (Constant Currency) | | Diluted EPS from Continuing Operations | $0.31 | $0.06 | +$0.25 | N/A | | Adjusted Diluted EPS | $0.34 | $0.33 | +$0.01 | —¢ (Constant Currency) | | Operating Margin | 10.8% | 2.3% | +850 bps | N/A | | Adjusted EBIT Margin | 11.8% | 12.3% | -50 bps | (1)% (Constant Currency) | | Gross Margin | 61.7% | 60.6% | +110 bps | N/A | | SG&A Expenses | $776M | $726M | +6.8% | N/A | | Adjusted SG&A | $769M | $696M | +10.5% | N/A | - Gross margin increased by **110 basis points** to **61.7%**, primarily due to favorable channel mix and price increases, partially offset by tariffs[6](index=6&type=chunk) - Restructuring charges related to Project Fuel amounted to **$9 million**[6](index=6&type=chunk) [Segment and Channel Performance](index=1&type=section&id=Segment%20and%20Channel%20Performance) All geographic segments and the Direct-to-Consumer (DTC) channel demonstrated positive net revenue growth in Q3 2025. Asia led with the highest growth, and DTC continued its strong performance, comprising a significant portion of total net revenues Q3 2025 Net Revenues by Segment (vs. Q3 2024) | Segment | Q3 2025 Net Revenues | Reported Growth | Organic Growth | | :-------- | :------------------- | :-------------- | :------------- | | Americas | $806M | +6% | +7% | | Europe | $426M | +5% | +3% | | Asia | $278M | +12% | +12% | | Beyond Yoga® | $33M | +2% | +2% | Q3 2025 Operating Income by Segment (vs. Q3 2024) | Segment | Q3 2025 Operating Income | Q3 2024 Operating Income | Reported Growth | | :-------- | :----------------------- | :----------------------- | :-------------- | | Americas | $189M | $174M | +9% | | Europe | $91M | $83M | +9% | | Asia | $33M | $28M | +17% | | Beyond Yoga® | $(5)M | $(6)M | +17% | Q3 2025 Net Revenues by Channel (vs. Q3 2024) | Channel | Reported Growth | Organic Growth | | :-------- | :-------------- | :------------- | | DTC | +11% | +9% | | E-commerce | +18% | +16% | | Wholesale | +3% | +5% | - DTC comprised **46%** of total net revenues in Q3 2025[3](index=3&type=chunk) - U.S. organic growth within Americas was **3%**[3](index=3&type=chunk) - DTC organic growth by region: U.S. **+7%**, Europe **+4%**, Asia **+14%**[3](index=3&type=chunk) [Balance Sheet Review](index=3&type=section&id=Balance%20Sheet%20Review) The company maintained strong liquidity and completed a significant portion of the Dockers® sale, impacting its balance sheet as of August 31, 2025 [Key Balance Sheet Items](index=3&type=section&id=Key%20Balance%20Sheet%20Items) As of August 31, 2025, the company maintained a strong liquidity position, with cash and cash equivalents of $613 million and total liquidity of approximately $1.5 billion. Total inventories increased by 12% compared to Q3 2024 Key Balance Sheet Figures (as of August 31, 2025) | Metric | Amount | | :------------------------ | :------------- | | Cash and cash equivalents | $613 million | | Total liquidity | ~$1.5 billion | | Total inventories (YoY) | +12% | - The company refinanced its **€475 million** **3.375%** senior notes due in **2027** with **€475 million** **4.000%** senior notes due in **2030**[13](index=13&type=chunk) [Dockers® Sale](index=3&type=section&id=Dockers%C2%AE%20Sale) The company completed the sale of Dockers® intellectual property and operations in the U.S. and Canada for $194.7 million in gross proceeds. The sale of remaining Dockers® operations is anticipated to conclude in Q1 2026 - On July 31, 2025, the company sold Dockers® intellectual property and operations in the U.S. and Canada for gross proceeds of **$194.7 million**[8](index=8&type=chunk) - The sale of the remaining Dockers® operations is expected to close in the first quarter of 2026[8](index=8&type=chunk) [Shareholder Returns](index=3&type=section&id=Shareholder%20Returns) The company demonstrated a commitment to shareholder returns through declared dividends and a significant share repurchase program in Q3 2025 [Dividends](index=3&type=section&id=Dividends) The company declared a Q4 dividend of $0.14 per share, totaling approximately $55 million, payable on November 4, 2025 - For Q4, a dividend of **$0.14** per share was declared, totaling approximately **$55 million**[10](index=10&type=chunk)[14](index=14&type=chunk) - The dividend is payable on November 4, 2025, to holders of record on October 20, 2025[10](index=10&type=chunk) [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) The company returned approximately $151 million to shareholders in Q3, an increase of 118% year-over-year, including a $120 million accelerated share repurchase program that retired approximately 5 million shares - Approximately **$151 million** was returned to shareholders in Q3, a **118%** increase over the prior year[9](index=9&type=chunk) - A **$120 million** accelerated share repurchase program was launched, retiring approximately **5 million shares**[14](index=14&type=chunk) - As of August 31, 2025, **$440 million** remained under the current share repurchase authorization[9](index=9&type=chunk) [Updated Fiscal 2025 Guidance](index=3&type=section&id=Updated%20Fiscal%202025%20Guidance) The company raised its fiscal 2025 outlook for key financial metrics, reflecting confidence in continued performance despite ongoing macroeconomic and tariff considerations [Updated Full-Year Outlook](index=3&type=section&id=Updated%20Full-Year%20Outlook) Levi Strauss & Co. raised its fiscal 2025 guidance for reported net revenue growth, organic net revenue growth, and adjusted diluted EPS, while maintaining its gross margin expansion, adjusted EBIT margin, and tax rate outlook Updated Fiscal 2025 Guidance | Metric | Previous Guidance | Updated Guidance | | :-------------------- | :---------------- | :--------------- | | Reported net revenue growth | 1% to 2% | ~3% | | Organic net revenue growth | 4.5% to 5.5% | ~6% | | Gross margin expansion | 80 basis points | 100 basis points | | Adjusted EBIT margin | 11.4% to 11.6% | Maintained at 11.4% to 11.6% | | Tax rate | ~23% | Maintained at ~23% | | Adjusted diluted EPS | $1.25 to $1.30 | $1.27 to $1.32 | [Guidance Assumptions](index=3&type=section&id=Guidance%20Assumptions) The fiscal 2025 guidance is based on continuing operations, excluding the Dockers® business, and assumes current U.S. tariffs on imports from China (30%) and Rest-of-World (20%) remain unchanged. It also assumes no significant worsening of macroeconomic pressures - Guidance is based on continuing operations, with the Dockers® business reported in discontinued operations[11](index=11&type=chunk) - Assumes U.S. tariffs on imports from China remain at **30%** and Rest-of-World at **20%** for the remainder of the year[11](index=11&type=chunk) - Assumes no significant worsening of macro-economic pressures, inflationary pressures, recessionary concerns, supply chain disruptions, increased tariffs, or currency impacts[12](index=12&type=chunk) [Company Information & Disclosures](index=4&type=section&id=Company%20Information%20%26%20Disclosures) This section provides essential company background, investor communication details, cautionary statements regarding future projections, and explanations of non-GAAP financial measures [About Levi Strauss & Co.](index=4&type=section&id=About%20Levi%20Strauss%20%26%20Co.) Levi Strauss & Co. is a global leader in jeanswear and one of the world's largest brand-name apparel companies, designing and marketing jeans, casual wear, and accessories under various brands, with products sold in approximately 120 countries - LS&Co. is a global leader in jeanswear and one of the world's largest brand-name apparel companies[17](index=17&type=chunk) - The company designs and markets products under Levi's®, Levi Strauss Signature™, Denizen®, Dockers® and Beyond Yoga® brands[17](index=17&type=chunk) - Products are sold in approximately **120 countries** through chain retailers, department stores, online sites, and **~3,200 retail stores/shop-in-shops**[17](index=17&type=chunk) - Reported 2024 net revenues were **$6.4 billion**[17](index=17&type=chunk) [Investor Conference Call Information](index=4&type=section&id=Investor%20Conference%20Call%20Information) Details for accessing the Q3 2025 investor conference call and webcast replay are provided for interested parties - Pre-registration link provided for the conference call[16](index=16&type=chunk) - Live webcast accessible via a provided link[16](index=16&type=chunk) - Webcast replay available on http://investors.levistrauss.com approximately two hours after the event and archived for one quarter[16](index=16&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements regarding future financial results, business outlook, strategic priorities, and macroeconomic conditions. These statements are estimates based on current judgment and involve risks and uncertainties that could cause actual results to differ materially - Statements related to future financial results, business outlook, strategic priorities, and macroeconomic conditions are forward-looking[18](index=18&type=chunk) - These statements are estimates reflecting management's best judgment and involve risks and uncertainties beyond the company's control[18](index=18&type=chunk) - Investors are cautioned not to place undue reliance on these statements and should consider information in SEC filings (Form 10-K, 10-Q)[18](index=18&type=chunk) [Non-GAAP Financial Measures Explanation](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The company uses various non-GAAP financial measures, such as Adjusted SG&A, Adjusted EBIT, Adjusted net income, and organic net revenues, to provide additional insights into its financial performance, enhance understanding of past performance, and facilitate period-to-period comparisons. These measures have limitations and should be viewed as supplementary to GAAP results - Non-GAAP measures are used to supplement GAAP financial statements, offering additional useful information about financial performance and enhancing understanding[19](index=19&type=chunk) - Examples of non-GAAP measures include Adjusted SG&A, Adjusted EBIT, Adjusted net income, Adjusted diluted EPS, organic net revenues, and Adjusted free cash flow[19](index=19&type=chunk) - Non-GAAP measures have limitations, lack standardized GAAP meaning, and may not be comparable to similarly titled measures used by other companies[19](index=19&type=chunk) - Organic net revenues exclude the impact of fluctuating foreign currency exchange rates, business acquisitions/divestitures, and the estimated impact of any 53rd week[20](index=20&type=chunk) - Constant-currency results facilitate period-to-period comparisons without the impact of fluctuating foreign currency exchange rates[20](index=20&type=chunk)[22](index=22&type=chunk) [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated balance sheets, statements of income, and cash flows, detailing the company's financial position and performance [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a snapshot of the company's financial position as of August 31, 2025, showing total assets of $6,656.4 million and total liabilities of $4,493.7 million Consolidated Balance Sheet Highlights (Dollars in millions) | Metric | August 31, 2025 | December 1, 2024 | | :---------------------------------- | :-------------- | :--------------- | | **ASSETS** | | | | Cash and cash equivalents | $612.8 | $690.0 | | Inventories | $1,286.3 | $1,131.3 | | Total current assets | $3,006.8 | $2,851.1 | | Total assets | $6,656.4 | $6,375.5 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Accounts payable | $621.4 | $663.4 | | Total current liabilities | $1,979.0 | $2,010.5 | | Long-term debt | $1,042.8 | $994.0 | | Total liabilities | $4,493.7 | $4,405.0 | | Total stockholders' equity | $2,162.7 | $1,970.5 | | Total liabilities and stockholders' equity | $6,656.4 | $6,375.5 | [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income show net revenues of $1,543.4 million for the three months ended August 31, 2025, with a net income of $218.1 million, significantly up from $20.7 million in the prior year Consolidated Statements of Income Highlights (Dollars in millions, except per share amounts) | Metric | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 25, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 25, 2024 | | :-------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net revenues | $1,543.4 | $1,443.1 | $4,516.2 | $4,282.1 | | Gross profit | $951.6 | $873.9 | $2,805.0 | $2,576.1 | | Operating income | $167.4 | $32.7 | $467.0 | $54.2 | | Income from continuing operations before income taxes | $156.2 | $22.2 | $435.3 | $21.5 | | 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 | | Diluted EPS - Continuing operations | $0.31 | $0.06 | $0.86 | $0.07 | | Diluted EPS - Discontinued operations | $0.24 | $(0.01) | $0.19 | — | | Net income - Diluted | $0.55 | $0.05 | $1.05 | $0.07 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended August 31, 2025, net cash provided by operating activities was $262.8 million, a decrease from the prior year, while net cash used for financing activities increased to $337.1 million Consolidated Statements of Cash Flows Highlights (Dollars in millions) | Metric | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 25, 2024 | | :-------------------------------------- | :----------------------------- | :----------------------------- | | Net income | $420.1 | $28.0 | | Net cash provided by operating activities | $262.8 | $601.1 | | Net cash provided by (used for) investing activities | $(9.7) | $(192.2) | | Net cash used for financing activities | $(337.1) | $(229.1) | | Net increase (decrease) in cash and cash equivalents | $(77.2) | $178.3 | | Ending cash and cash equivalents | $612.8 | $577.1 | - Proceeds from the sale of business amounted to **$194.7 million** in the nine months ended August 31, 2025[33](index=33&type=chunk) - Accelerated share repurchase program utilized **$120.0 million** in the nine months ended August 31, 2025[33](index=33&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=13&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) This section provides detailed definitions and reconciliations of various non-GAAP financial measures to their most directly comparable GAAP counterparts [Non-GAAP Measure Definitions](index=13&type=section&id=Non-GAAP%20Measure%20Definitions) This section defines key non-GAAP financial measures used by Levi Strauss & Co., such as Adjusted SG&A, Adjusted EBIT, Adjusted EBITDA, Adjusted net income, and Adjusted diluted earnings per share, outlining the adjustments made to their GAAP counterparts - Adjusted SG&A excludes property, plant, and equipment impairment, restructuring-related charges, and acquisition/integration-related charges[37](index=37&type=chunk) - Adjusted EBIT excludes income tax expense, interest expense, other income/expense, impairments, restructuring charges, and acquisition/integration-related charges from net income from continuing operations[37](index=37&type=chunk) - Adjusted EBITDA is Adjusted EBIT excluding depreciation and amortization expense[37](index=37&type=chunk) - Adjusted net income excludes various non-recurring or non-operational items and their tax impacts from net income from continuing operations[37](index=37&type=chunk) - Adjusted diluted earnings per share is Adjusted net income per weighted-average number of diluted common shares outstanding[37](index=37&type=chunk) [Adjusted SG&A Reconciliation](index=14&type=section&id=Adjusted%20SG%26A%20Reconciliation) The reconciliation shows that Adjusted SG&A for Q3 2025 was $769.3 million, an increase from $696.1 million in Q3 2024, primarily due to higher restructuring-related charges in the prior year Adjusted SG&A Reconciliation (Dollars in millions) | Metric | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 25, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 25, 2024 | | :-------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Selling, general and administrative expenses (GAAP) | $775.6 | $726.4 | $2,313.4 | $2,233.4 | | Property, plant, and equipment impairment | — | $(11.1) | — | $(11.1) | | Restructuring related charges and other, net | $(6.3) | $(19.2) | $(14.0) | $(44.6) | | Acquisition and integration related charges | — | — | — | $(4.0) | | **Adjusted SG&A (Non-GAAP)** | **$769.3** | **$696.1** | **$2,299.4** | **$2,173.7** | | SG&A margin | 50.3% | 50.3% | 51.2% | 52.2% | | Adjusted SG&A margin | 49.8% | 48.2% | 50.9% | 50.8% | - Restructuring related and other charges for Q3 2025 primarily include **$4.3 million** of Project Fuel costs and **$2.0 million** in estimated legal settlements[40](index=40&type=chunk) [Adjusted EBIT and Adjusted EBITDA Reconciliation](index=15&type=section&id=Adjusted%20EBIT%20and%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBIT for Q3 2025 was $182.3 million, up from $177.8 million in Q3 2024, reflecting improved operating performance after excluding various non-recurring items. Adjusted EBITDA also increased to $234.0 million Adjusted EBIT and Adjusted EBITDA Reconciliation (Dollars in millions) | Metric | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 25, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 25, 2024 | | :-------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income from continuing operations (GAAP) | $122.0 | $22.7 | $341.8 | $30.0 | | Income tax expense (benefit) | 34.2 | (0.5) | 93.5 | (8.5) | | Interest expense | 12.5 | 10.1 | 35.2 | 30.4 | | Other (income) expense, net | (1.3) | 0.4 | (3.5) | 2.3 | | Property, plant, and equipment impairment | — | 11.1 | — | 11.1 | | Goodwill and other intangible asset impairment charges | — | 111.4 | 2.5 | 116.9 | | Restructuring charges, net | 8.6 | 3.4 | 22.1 | 171.6 | | Restructuring related charges and other, net | 6.3 | 19.2 | 14.0 | 44.6 | | Acquisition and integration related charges | — | — | — | 4.0 | | **Adjusted EBIT (Non-GAAP)** | **$182.3** | **$177.8** | **$505.6** | **$402.4** | | Depreciation and amortization | 51.7 | 48.8 | 151.2 | 136.4 | | **Adjusted EBITDA (Non-GAAP)** | **$234.0** | **$226.6** | **$656.8** | **$538.8** | | Adjusted EBIT margin | 11.8% | 12.3% | 11.2% | 9.4% | - Goodwill impairment charges for the nine months ended August 31, 2025, include **$2.5 million** related to the business in Bolivia[48](index=48&type=chunk) - Restructuring charges for Q3 2025 include **$8.6 million** in connection with Project Fuel, primarily severance and post-employment benefits[50](index=50&type=chunk) [Adjusted Net Income Reconciliation](index=16&type=section&id=Adjusted%20Net%20Income%20Reconciliation) Adjusted net income for Q3 2025 was $135.7 million, a slight increase from $133.9 million in Q3 2024, after accounting for various adjustments and their tax impacts Adjusted Net Income Reconciliation (Dollars in millions) | Metric | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 25, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 25, 2024 | | :-------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income from continuing operations (GAAP) | $122.0 | $22.7 | $341.8 | $30.0 | | Property, plant, and equipment impairment | — | 11.1 | — | 11.1 | | Goodwill and other intangible asset impairment charges | — | 111.4 | 2.5 | 116.9 | | Restructuring charges, net | 8.6 | 3.4 | 22.1 | 171.6 | | Restructuring related charges and other, net | 7.4 | 15.1 | 15.1 | 40.5 | | Loss on early extinguishment of debt | 1.5 | — | 1.5 | — | | Acquisition and integration related charges | — | — | — | 4.0 | | Tax impact of adjustments | (3.8) | (29.8) | (8.8) | (74.6) | | **Adjusted net income (Non-GAAP)** | **$135.7** | **$133.9** | **$374.2** | **$299.5** | | Adjusted net income margin | 8.8% | 9.3% | 8.3% | 7.0% | - Restructuring related and other charges for Q3 2025 include Project Fuel costs, legal settlements, and an insurance recovery[65](index=65&type=chunk) [Adjusted Diluted Earnings per Share Reconciliation](index=18&type=section&id=Adjusted%20Diluted%20Earnings%20per%20Share%20Reconciliation) Adjusted diluted earnings per share for Q3 2025 was $0.34, a slight increase from $0.33 in Q3 2024, reflecting the impact of various non-GAAP adjustments on a per-share basis Adjusted Diluted EPS Reconciliation (Unaudited) | Metric | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 25, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 25, 2024 | | :-------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Diluted earnings per share from continuing operations (GAAP) | $0.31 | $0.06 | $0.86 | $0.07 | | Property, plant, and equipment impairment | — | 0.03 | — | 0.03 | | Goodwill and other intangible asset impairment charges | — | 0.28 | 0.01 | 0.30 | | Restructuring charges, net | 0.02 | 0.01 | 0.06 | 0.43 | | Restructuring related charges and other, net | 0.02 | 0.04 | 0.04 | 0.10 | | Loss on early extinguishment of debt | — | — | — | — | | Acquisition and integration related charges | — | — | — | 0.01 | | Tax impact of adjustments | (0.01) | (0.09) | (0.03) | (0.19) | | **Adjusted diluted earnings per share (Non-GAAP)** | **$0.34** | **$0.33** | **$0.94** | **$0.75** | [Adjusted Free Cash Flow Reconciliation](index=19&type=section&id=Adjusted%20Free%20Cash%20Flow%20Reconciliation) Adjusted free cash flow for the nine months ended August 31, 2025, was $92.5 million, a decrease from $439.3 million in the prior year, primarily due to lower net cash provided by operating activities - Adjusted free cash flow is defined as net cash flow from operating activities less purchases of property, plant and equipment from continuing and discontinued operations[77](index=77&type=chunk) Adjusted Free Cash Flow Reconciliation (Dollars in millions) | Metric | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 25, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 25, 2024 | | :-------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities (GAAP) | $24.8 | $52.3 | $262.8 | $601.1 | | Purchases of property, plant and equipment | $(64.2) | $(50.0) | $(170.3) | $(161.8) | | **Adjusted free cash flow (Non-GAAP)** | **$(39.4)** | **$2.3** | **$92.5** | **$439.3** | [Return on Invested Capital (ROIC)](index=20&type=section&id=Return%20on%20Invested%20Capital%20(ROIC)) The Return on Invested Capital (ROIC) for the trailing four quarters ended August 31, 2025, was 17.4%, an improvement from 14.6% in the prior year, indicating increased efficiency in generating operating income relative to invested capital - ROIC is defined as the trailing four quarters of Adjusted net income before interest and after taxes divided by the average trailing five quarters of total invested capital[79](index=79&type=chunk) Return on Invested Capital (ROIC) (Dollars in millions) | Metric | Trailing Four Quarters Ended Aug 31, 2025 | Trailing Four Quarters Ended Aug 25, 2024 | | :-------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Adjusted net income before interest and after taxes | $611.9 | $511.9 | | Average Total invested Capital | $3,522.8 | $3,506.5 | | **Return on Invested Capital (ROIC)** | **17.4%** | **14.6%** | [Organic Net Revenues and Constant-Currency Explanation](index=20&type=section&id=Organic%20Net%20Revenues%20and%20Constant-Currency%20Explanation) This section reiterates the definitions of organic net revenues and constant-currency measures, emphasizing their role in facilitating period-to-period comparisons by excluding the impact of foreign currency fluctuations, acquisitions/divestitures, and the 53rd week - Organic net revenues exclude the impact of fluctuating foreign currency exchange rates, net revenues from business acquisitions or divestitures, and the estimated impact of any 53rd week[20](index=20&type=chunk) - Constant-currency results facilitate period-to-period comparisons by removing the impact of fluctuating foreign currency exchange rates[20](index=20&type=chunk)[22](index=22&type=chunk) - These measures exclude the results of the Dockers® business, classified as discontinued operations[21](index=21&type=chunk) [Organic Net Revenues by Segment](index=21&type=section&id=Organic%20Net%20Revenues%20by%20Segment) Total organic net revenues increased by 6.9% for Q3 2025 and 8.0% for the nine months ended August 31, 2025, with all segments showing positive organic growth, particularly strong in Asia Organic Net Revenues by Segment (Dollars in millions) | Segment | Q3 2025 As Reported | Q3 2024 Organic Net Revenues | Q3 2025 Organic Growth | 9M 2025 As Reported | 9M 2024 Organic Net Revenues | 9M 2025 Organic Growth | | :-------------- | :------------------ | :--------------------------- | :--------------------- | :------------------ | :--------------------------- | :--------------------- | | Total net revenues | $1,543.4 | $1,444.4 | 6.9% | $4,516.2 | $4,177.7 | 8.0% | | Americas | $806.4 | $751.7 | 7.3% | $2,337.8 | $2,141.9 | 9.0% | | Europe | $426.3 | $413.3 | 3.1% | $1,229.9 | $1,154.0 | 6.6% | | Asia | $277.7 | $247.2 | 12.3% | $843.5 | $784.6 | 7.5% | | Beyond Yoga® | $33.0 | $32.2 | 2.5% | $105.0 | $97.2 | 8.0% | [Organic Net Revenues by Channel](index=22&type=section&id=Organic%20Net%20Revenues%20by%20Channel) The Direct-to-Consumer (DTC) channel continued to drive strong organic net revenue growth, increasing by 8.8% in Q3 2025, while Wholesale also showed solid growth of 5.3% Organic Net Revenues by Channel (Dollars in millions) | Channel | Q3 2025 As Reported | Q3 2024 Organic Net Revenues | Q3 2025 Organic Growth | 9M 2025 As Reported | 9M 2024 Organic Net Revenues | 9M 2025 Organic Growth | | :-------- | :------------------ | :--------------------------- | :--------------------- | :------------------ | :--------------------------- | :--------------------- | | Wholesale | $832.2 | $790.6 | 5.3% | $2,301.4 | $2,174.8 | 5.7% | | DTC | $711.2 | $653.8 | 8.8% | $2,214.8 | $2,002.9 | 10.6% | [Organic Net Revenues by Brand](index=23&type=section&id=Organic%20Net%20Revenues%20by%20Brand) Levi's® brands collectively achieved 7.0% organic net revenue growth in Q3 2025, with Levi Strauss Signature™ showing particularly strong growth of 21.1% Organic Net Revenues by Brand (Dollars in millions) | Brand | Q3 2025 As Reported | Q3 2024 Organic Net Revenues | Q3 2025 Organic Growth | 9M 2025 As Reported | 9M 2024 Organic Net Revenues | 9M 2025 Organic Growth | | :---------------------- | :------------------ | :--------------------------- | :--------------------- | :------------------ | :--------------------------- | :--------------------- | | Total Levi's Brands | $1,510.4 | $1,412.2 | 7.0% | $4,411.2 | $4,080.5 | 8.0% | | Levi's® | $1,450.8 | $1,363.0 | 6.4% | $4,236.4 | $3,927.9 | 7.9% | | Levi Strauss Signature™ | $59.6 | $49.2 | 21.1% | $172.5 | $152.6 | 13.0% | | Denizen® | — | — | * | $2.3 | — | * | [Constant-Currency Adjusted EBIT and Margin](index=24&type=section&id=Constant-Currency%20Adjusted%20EBIT%20and%20Margin) Constant-currency Adjusted EBIT for Q3 2025 was $182.3 million, showing a slight decrease of 0.9% compared to the prior year, while the constant-currency Adjusted EBIT margin was 11.8% Constant-Currency Adjusted EBIT and Margin (Dollars in millions) | Metric | Q3 2025 As Reported | Q3 2024 Constant-Currency | Q3 2025 Constant-Currency Growth | 9M 2025 As Reported | 9M 2024 Constant-Currency | 9M 2025 Constant-Currency Growth | | :-------------------------------------- | :------------------ | :------------------------ | :------------------------------- | :------------------ | :------------------------ | :------------------------------- | | Adjusted EBIT | $182.3 | $184.0 | (0.9)% | $505.6 | $397.0 | 27.4% | | Adjusted EBIT margin | 11.8% | 12.5% | (5.6)% | 11.2% | 9.3% | 20.4% | [Constant-Currency Adjusted Net Income and Diluted EPS](index=25&type=section&id=Constant-Currency%20Adjusted%20Net%20Income%20and%20Diluted%20EPS) Constant-currency Adjusted net income for Q3 2025 was $135.7 million, a slight decrease of 0.6% compared to the prior year, while constant-currency Adjusted diluted EPS remained flat at $0.34 Constant-Currency Adjusted Net Income and Diluted EPS (Dollars in millions, except per share amounts) | Metric | Q3 2025 As Reported | Q3 2024 Constant-Currency | Q3 2025 Constant-Currency Growth | 9M 2025 As Reported | 9M 2024 Constant-Currency | 9M 2025 Constant-Currency Growth | | :-------------------------------------- | :------------------ | :------------------------ | :------------------------------- | :------------------ | :------------------------ | :------------------------------- | | Adjusted net income | $135.7 | $136.5 | (0.6)% | $374.2 | $296.9 | 26.0% | | Adjusted diluted earnings per share | $0.34 | $0.34 | —% | $0.94 | $0.74 | 27.0% |

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended August 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-06631 _________________ LEVI STRAUSS & CO. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdicti ...