This audio is auto-generated. Please let us know if you have feedback Dive Brief:Levi Strauss & Co. Q3 net sales rose 7% year over year to $1.5 billion. Beyond Yoga, up 2.5%, provided $33 million of that; Levi’s rose 7%. Gross margin expanded by 110 basis points to 61.7%, offset by tariffs. Total inventories rose 12% on a dollar basis. Net income from continuing operations (minus the Dockers business, which has been sold) was more than five times higher than the year-ago period, reaching $122 million.The c ...

Levi Strauss & Co (NYSE:LEVI) stock is sharply lower today, down 10% at $22.07 at last glance. The shares are brushing off strong third-quarter results as the retailer's disappointing annual profit forecast weighs. Still, no fewer than three analysts lifted their price targets, including J.P. Morgan to $33 from $23, with the firm also maintaining its "overweight" rating. Today's drop has Levi Strauss stock moving away from its recent Oct. 3 three-year high of $24.82. Earlier as low as $21.11, the shares are ...

Financial Data and Key Metrics Changes - For Q2 2025, comparable sales decreased by 1.9%, showing a nearly two percentage point improvement from Q1 [32] - Net sales were down 0.9% year-over-year, which was nearly two percentage points better than Q1 performance [40] - GAAP and adjusted EPS for Q2 were $2.05, down from $2.57 a year ago, primarily due to inventory adjustment and tariff-related costs [44] Business Line Data and Key Metrics Changes - Digital channel comparable sales grew by 4.3%, with significant strength in same-day delivery, which increased by over 25% [33] - The Fun 101 initiative led to over 5% growth in hardlines, marking the strongest quarterly comp in this category since 2021 [34] - Trading card sales increased nearly 70% year-to-date, positioning the company as a top market share player in that category [34] Market Data and Key Metrics Changes - The company gained or held market share in 14 out of 35 subcategories tracked so far this year [41] - The food and beverage categories saw slight year-over-year growth, driven by new floral offerings and trending flavors [35] Company Strategy and Development Direction - The new CEO, Michael Fidelke, emphasized the need to reestablish merchandising authority and improve guest experience [18][19] - The company plans to leverage technology to enhance speed and efficiency across operations [23] - A focus on style and design will be central to the company's strategy moving forward [67] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that results over the past few years have fallen short of expectations and emphasized the urgency to improve performance [7][12] - The leadership team is committed to returning the company to growth and improving the shopping experience for guests [53][55] - The company expects to navigate the current tariff environment and is optimistic about ending the year in a healthy position [11] Other Important Information - The company announced a succession plan with Michael Fidelke becoming the next CEO at the start of the 2026 fiscal year [5][6] - The company is investing in technology and process improvements to streamline operations and enhance the guest experience [49] Q&A Session Summary Question: What price increases were taken during the second quarter due to tariffs? - Management indicated that they are working hard to mitigate tariff impacts and will take price increases as a last resort, focusing on maintaining competitive pricing [58][59] Question: How does the succession plan bring about change to improve business trajectory? - The new CEO highlighted the importance of leveraging his extensive experience with the company to focus on style and design as key growth drivers [66][67] Question: What investments will be necessary to close the performance gap with peers? - The company plans to continue investing in high-return projects, including new store openings and technology enhancements [72][75]