Core Insights - Levi Strauss raised its full-year profit forecast but fell short of Wall Street expectations due to costs associated with U.S. import tariffs, resulting in a 7.5% decline in shares during extended trading [1] - The company has secured about 70% of its holiday inventory ahead of schedule and has raised prices modestly to mitigate the impact of U.S. tariff policies [1][2] - Despite these efforts, the fourth-quarter gross margin is expected to decline by 130 basis points [2] Financial Performance - Levi now expects fiscal-year 2025 adjusted profit per share to be between $1.27 and $1.32, an increase from the previous forecast of $1.25 to $1.30, although the midpoint is below the analyst estimate of $1.31 [3] - The forecast assumes that U.S. tariffs will remain at 30% for China and 20% for other countries through the end of the year [3] - The company reported a 7% increase in net revenue for the quarter ending August 31, reaching $1.54 billion, surpassing analysts' expectations of $1.50 billion [6] Market Position and Strategy - Merchandise levels increased by 12% compared to the previous year, with the majority of products sourced from South Asia, which faces high tariffs under the current administration [5] - Levi has focused on full-price sales through its direct-to-consumer channel, expanded its product offerings, and maintained strict control over inventory [4]

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]

Core Viewpoint - V.F. Corporation is facing a federal securities class action lawsuit due to significant declines in its Vans brand performance and misleading statements regarding its turnaround plans [4][5]. Financial Performance - V.F. Corporation reported a substantial decline in growth for its Vans brand, with losses worsening from 8% in the previous quarter to 20% in the fourth quarter of fiscal 2025 [4]. - The company's share price fell by $2.28, approximately 15.8%, from $14.43 on May 20, 2025, to $12.15 on May 21, 2025, following the announcement of these results [4]. Lawsuit Details - The lawsuit is on behalf of investors who purchased V.F. Corporation securities between October 30, 2023, and May 20, 2025, alleging that the company made materially false and misleading statements regarding its turnaround efforts [5]. - The lawsuit claims that significant reset actions were necessary for the Vans brand to return to growth, which were not disclosed to investors [5]. Company Actions - V.F. Corporation attributed its poor performance and below-expectation guidance to deliberate actions taken to eliminate unprofitable businesses, indicating that even without these actions, the Vans brand would have experienced a high single-digit revenue decline [4].

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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]

Core Viewpoint - V.F. Corporation is facing a class action securities lawsuit due to alleged securities fraud that negatively impacted investors between October 30, 2023, and May 20, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that V.F. Corporation made materially false and misleading statements regarding its turnaround plans, particularly concerning the Vans brand, which required significant reset actions to return to growth [2]. - Following the release of V.F. Corporation's fiscal 2025 results on May 21, 2025, it was revealed that Vans' revenue growth trajectory had significantly declined, with losses increasing from 8% to 20% in the fourth quarter [2]. - The company's results were attributed to deliberate actions taken to eliminate unprofitable businesses, which were previously unannounced, and even without these actions, Vans would have shown a high single-digit revenue decline [2]. Group 2: Stock Price Impact - On May 21, 2025, following the disclosure of the negative financial results, V.F. Corporation's stock price dropped from $14.43 to $12.15 per share, marking a decline of approximately 15.8% in one day [2]. Group 3: Next Steps for Investors - Investors who suffered losses during the relevant period have until November 12, 2025, to request to be appointed as lead plaintiff in the lawsuit, although participation does not require serving in this role [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees [3]. Group 4: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the United States [4].