DTC (Direct-to-Consumer) business model
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Levi Strauss Stock Slips Despite Q3 Earnings Beat
Benzingaยท 2025-10-09 20:52
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]