Core Insights - Levi Strauss reported a 7% year-on-year increase in net revenues to $1.5 billion for Q3 2025, with growth across various regions and channels [1][2][4] Revenue Performance - Net revenues in the Americas increased by 6% reported and 7% organically, with the US up 3% organically [1] - Europe saw a growth of 5% reported and 3% organic, while Asia experienced a significant growth of 12% on both measures [1] - Direct-to-consumer (DTC) revenue climbed 11% reported and 9% organically, with e-commerce sales up 18% reported and 16% organic, accounting for 46% of total revenue [2] - Wholesale revenue grew by 3% reported and 5% organic [2] Profitability Metrics - Adjusted net income for Q3 2025 was $135.7 million, slightly up from $133.9 million in the same period last year [2] - Adjusted diluted earnings per share (EPS) stood at $0.34 [2] - Gross margin expanded by 110 basis points to 61.7%, driven by a favorable channel mix and price hikes [3] - Operating margin improved to 10.8% in Q3 2025, compared to 2.3% a year earlier [3] Liquidity and Financial Guidance - As of August 31, 2025, cash and cash equivalents were $613 million, with total liquidity of $1.5 billion [3] - The company completed the sale of its Dockers intellectual property and operations in the US and Canada for $194.7 million [3] - For fiscal 2025, the company raised its reported net revenue growth expectation to around 3% and organic growth to 6% [4] - Adjusted diluted EPS outlook was lifted to between $1.27 and $1.32 [4] Strategic Direction - The CEO stated that the company's pivot to a DTC-first, head-to-toe denim lifestyle retailer is driving significant financial performance improvements [5] - The company is well-positioned for the holiday season and expresses confidence in sustained, profitable growth into 2026 and beyond [6]

Core Viewpoint - Levi Strauss (LEVI) shares fell by 11.5% in late trading on Friday, raising concerns about the impact of tariff costs on the company's profit outlook [1] Company Summary - The decline in Levi Strauss's stock price reflects market apprehension regarding potential tariff costs affecting profitability [1]

Core Insights - Levi Strauss & Co. raised its full-year revenue and profit forecast after a stronger-than-expected quarterly performance driven by robust denim demand and growth in direct-to-consumer sales [1] - Despite the positive outlook, shares fell over 11% following Morgan Stanley's analysis indicating disappointing profitability flow-through from the upgraded guidance [1] Financial Performance - For Q3, Levi reported earnings of $0.34 per share, exceeding Wall Street's consensus estimate of $0.30 [1] - Revenue increased to $1.54 billion from $1.50 billion year-over-year, surpassing analyst expectations of $1.50 billion [1] Future Guidance - The company now forecasts fiscal 2025 adjusted earnings of $1.27 to $1.32 per share, up from the previous range of $1.25 to $1.30 [2] - Levi raised its reported net revenue growth outlook to around 3%, an increase from the prior estimate of 1% to 2% [2] - Projected organic growth is now roughly 6%, compared to the earlier estimate of 4.5% to 5.5% [2] Margin Expectations - Gross margin is expected to expand by 100 basis points this year, an increase from the prior forecast of 80 basis points [2] - Adjusted EBIT margin is anticipated to remain between 11.4% and 11.6% [2]

Core Insights - Levi Strauss & Co. reported strong third-quarter fiscal 2025 results, with earnings per share (EPS) and revenues exceeding expectations, showing year-over-year improvement [1][2] Financial Performance - Adjusted EPS for the quarter was 34 cents, surpassing the Zacks Consensus Estimate of 31 cents, and increased nearly 3% from 33 cents in the prior year [2] - Net revenues reached $1.54 billion, exceeding the Zacks Consensus Estimate of $1.50 billion, and grew nearly 7% year over year [2] - DTC net revenues increased by 11.3% to $711.2 million, with organic growth driven by a 7% rise in the U.S., 4% in Europe, and 14% in Asia [4] - E-commerce revenues rose 18% on a reported basis and 16% organically [4] - Wholesale net revenues grew 3.5% to $832.2 million, with a 5.3% organic increase [5] Regional Performance - In the Americas, revenues increased 6% on a reported basis and 7% organically, with the U.S. showing a 3% organic growth [6] - European revenues grew 5% reported and 3% organically, driven by strong performance in the UK [7] - Asian revenues rose 12% both reported and organically, with double-digit growth in DTC and wholesale [7] Margins and Expenses - Gross profit increased 8.9% year over year to $951.6 million, with gross margin expanding by 110 basis points to 61.7% [8] - Adjusted SG&A expenses rose 10.5% to $769.3 million, with a percentage of revenues decreasing by 160 basis points to 49.8% [8] Shareholder Returns - The company returned nearly $151 million to shareholders, a 118% increase year over year, including $55 million in dividends [11] - An accelerated share repurchase program of $120 million was launched, retiring about 5 million shares [11] Future Outlook - For fiscal 2025, the company expects reported net revenue growth of about 3%, up from a previous forecast of 1-2% [15] - Organic net revenue growth is projected at around 6%, an increase from the earlier estimate of 4.5-5.5% [15] - The gross margin is anticipated to rise by 100 basis points, with adjusted EPS expected to be in the range of $1.27-$1.32 [15]

Core Insights - Levi Strauss (NYSE:LEVI) reported strong quarterly performance with gains across all regions, channels, segments, and categories, exceeding Wall Street expectations [3] - The company raised its FY25 profit and organic net revenue guidance, indicating positive growth outlook [3] - However, the guidance led to a negative reaction in the stock market, affecting LEVI's expected trajectory [3]

Market Overview - US stocks experienced a significant decline, with the Dow Jones Industrial Average falling 604 points (1.3%), the S&P 500 losing 1.9%, and the Nasdaq Composite dropping 2.7% following President Trump's tariff threat on Chinese imports [12][13]. Tariff Threat and Trade Relations - President Trump announced a potential "massive" increase in tariffs on Chinese products, citing China's recent restrictions on rare earth metals as a reason for the heightened tensions [2][3][13]. - The tightening of export controls by Beijing, requiring licenses for goods containing 0.1% or more of rare earth materials, has raised concerns about China's control over this critical resource [3][13]. Impact on Technology Sector - Technology stocks, heavily reliant on China for manufacturing and sales, were among the hardest hit, with AMD plunging over 6%, Tesla dropping more than 4%, and Nvidia losing more than 2% [6][12][13]. - The "Magnificent Seven" stocks, including Amazon and Apple, also saw declines, with Amazon tumbling more than 3% and Apple slipping 2% [6][12][13]. Performance of Other Companies - Mosaic and Levi Strauss were noted as top losers in the S&P 500, with Mosaic facing production issues at its plants and Levi Strauss warning that tariffs would negatively impact its current-quarter results [8][13]. - Chinese companies listed in the US, such as Alibaba and Baidu, experienced significant drops of about 8%, while JD.com and PDD Holdings fell 6.6% and 5.2%, respectively [9][13]. Broader Economic Context - The market sell-off coincided with the ongoing US government shutdown, which has entered its 10th day, contributing to negative investor sentiment [10][13].

Core Viewpoint - Levi Strauss delivered a strong third quarter performance that exceeded Wall Street expectations, leading management to raise its full-year outlook, yet shares fell over 11% in morning trading due to high prior expectations and conservative forward guidance [1][2]. Financial Performance - The company reported a 9% increase in direct-to-consumer (DTC) sales in Q3, with e-commerce sales surging by 16%, indicating strong consumer engagement and a shift towards full-price sales [5]. - Profit margins expanded by over 400 basis points in Q3, driven by productivity initiatives and improved store-level efficiency [6]. Market Reaction - Despite the positive earnings report, Levi's shares experienced a decline of more than 11% in morning trading, attributed to high expectations following a 64% increase in stock price over the past six months and a new 52-week high of $24.82 [1][2]. Strategic Initiatives - The company is focusing on reshaping its business model by increasing higher-margin DTC sales, expanding internationally, and growing its women's category, which is expected to drive revenue and profitability [4]. - The women's segment saw a 9% sales increase in Q3, highlighting the potential for higher profit margins in this market [7]. Operational Efficiency - Levi's store optimization strategy, which includes enhanced lifestyle merchandising and improved assortment planning, is contributing to consumer satisfaction and operational efficiency [6].

Key Points Levi Strauss's stock fell as much as 14% Friday morning despite Q3 beats on revenue and EPS. Management raised full-year guidance but flagged tariff stability and holiday macro risks. After a 49% six-month rally, LEVI trades around 18.7 times trailing earnings, and that's after Friday's retreat. 10 stocks we like better than Levi Strauss & Co. › Shares of Levi Strauss (NYSE: LEVI) faded on Friday, like a pair of bleached jeans. The apparel maker reported third-quarter results on Thursd ...

Scott Olson / Getty Images Levi Strauss & Co. offered future guidance that offset strong third-quarter results Key Takeaways Levi Strauss warned that tariffs will negatively affect its results in the fourth quarter. The jeans maker said fourth-quarter gross margin would fall and issued a projection for adjusted earnings per share that came in below Wall Street forecasts. The outlook offset solid third-quarter results on the top and bottom lines. Levi Strauss (LEVI) shares dropped as the jeans make ...

Market Reaction - Major U.S. equities indexes experienced a sharp decline, erasing early gains after President Trump threatened "massive" tariffs on Chinese goods in response to China's rare earth export curbs [1][5] - The Dow, S&P 500, and Nasdaq all lost over 1% [1] Chip Industry Impact - Chip stocks, including Advanced Micro Devices (AMD) and Arm (ARM), were among the biggest decliners in the S&P 500 and Nasdaq [2] - Nvidia (NVDA) shares also fell after reaching a new intraday record, with the PHLX Semiconductor Index (SOX) down 4% [2] Company-Specific Developments - Qualcomm (QCOM) faced additional challenges as Chinese regulators investigated its acquisition of Autotalks for potential antitrust violations [3] - Mosaic (MOS) was the worst-performing stock in the S&P 500 due to production issues at two of its plants [3] - Levi Strauss (LEVI) shares dropped after the company indicated that tariffs would negatively impact current-quarter results [3] Other Notable Performances - PepsiCo (PEP) shares rose after reporting better-than-expected results driven by higher international demand and strong sales of healthier drinks in the U.S. [4][5] - Applied Digital (APLD) saw a significant increase in shares after beating earnings and revenue forecasts, aided by a new data center lease agreement with CoreWeave [4]