Levi Strauss & Co. LEVI reported spectacular third-quarter fiscal 2025 outcomes, whereby earnings per share (EPS) and revenues beat the Zacks Consensus Estimate. Each metrics improved yr over yr.
Direct-to-Shopper (DTC) has been a key development driver, backed by constructive comp development and strong e-commerce efficiency. LEVI posted constructive world comps for the 14th straight time within the reported quarter. Its innovation pipeline can be strong.
Levi Strauss, one of many world’s largest brand-name attire corporations and a worldwide chief in denims put on within the Americas, Europe and Asia, posted quarterly adjusted EPS of 34 cents, which beat the Zacks Consensus Estimate of 31 cents and rose practically 3% from 33 cents reported within the prior-year interval.
Web revenues of $1.54 billion additionally beat the Zacks Consensus Estimate of $1.50 billion. Additionally, the metric jumped practically 7% yr over yr on a reported foundation and 6.9% on an natural foundation.
Shares of this Zacks Rank #2 (Purchase) firm have risen 63.1% previously three months in contrast with the business’s development of 25.2%.
LEVI’s Quarterly Efficiency: Key Metrics & Insights
DTC web revenues mirrored a rise of 11.3% on a reported foundation and eight.8% on an natural foundation to $711.2 million. Natural DTC development was backed by an increase of seven% in the USA, 4% in Europe and 14% in Asia. E-commerce web revenues have been up 18% on a reported foundation and 16% on an natural foundation. Within the fiscal third quarter, DTC accounted for 46% of the general web revenues.
Wholesale web revenues rose 3.5% on a reported foundation to $832.2 million. The metric rose 5.3% on an natural foundation. Past Yoga revenues grew 2% on each a reported and natural foundation.
Levi Strauss & Co. Worth, Consensus and EPS Shock
Levi Strauss & Co. price-consensus-eps-surprise-chart | Levi Strauss & Co. Quote
The Zacks Consensus Estimate for DTC and Wholesale channels was pegged at $669 million and $831 million, respectively, for the fiscal third quarter.
Within the Americas, revenues elevated 6% on a reported foundation and seven% on an natural foundation. Inside the Americas, the US rose 3% on an natural foundation, delivering the fifth straight quarter of strong development. U.S. wholesale web revenues have been up regardless of the headwinds associated to the transition of its U.S. distribution facilities. Backed by broad-based power within the area, LatAm recorded numerous consecutive quarters of double-digit development, together with Q3, which recorded 23% development.
In Europe, revenues jumped 5% on a reported foundation and three% on an natural foundation. All the main markets witnessed development, due to strong efficiency within the UK.
In Asia, revenues grew 12% each on a reported foundation and an natural foundation, with double-digit development throughout DTC and wholesale.
LEVI’s Margins & Bills
Gross revenue elevated 8.9% yr over yr to $951.6 million. The gross margin expanded 110 foundation factors (bps) to 61.7% within the fiscal third quarter, greater than offsetting 80 bps of tariff headwinds. This development was primarily buoyed by pricing actions, a positive structural enterprise combine and constructive impacts of international trade.
Adjusted SG&A bills edged up 10.5% to $769.3 million; whereas, as a proportion of revenues, adjusted SG&A deleveraged 160 bps to 49.8%.
Levi Strauss’ Different Monetary Snapshots
LEVI ended the quarter with money and money equivalents of $612.8 million and whole liquidity of $1.5 billion. As of Aug. 31, 2025, long-term debt and whole shareholders’ fairness have been $1 billion and $2.2 billion, respectively. Complete inventories jumped 12% on a greenback foundation. Within the 9 months of fiscal 2025, web money generated from working actions was $262.8 million and adjusted free money stream was $92.5 million.
Within the fiscal third quarter, the corporate returned practically $151 million to shareholders, a 118% enhance yr over yr, together with dividends of $55 million. It has launched a $120 million accelerated share repurchase program, taking supply of and retiring about 5 million shares. The steadiness shares can be settled on the finish of this system. As of Aug. 31, 2025, the corporate had $440 million remaining beneath its present share repurchase authorization, with no expiration date.
For This fall, LEVI has introduced a money dividend of 14 cents a share totaling $55 million, payable Nov. 4, 2025, to the holders of document as on Oct. 20, 2025.
What to Count on From LEVI in FY25?
The 2025 outlook relies on persevering with operations, with the Dockers enterprise as discontinued operations. This assumes U.S. tariffs on imports from China at 30% and Relaxation-of-World at 20% for the remainder of the yr. 2026, the corporate continues to take actions to offset the tariffs. Such mitigation efforts embody promotion optimization, pricing actions, vendor negotiation and supply-chain diversification.
For the fiscal fourth quarter, administration expects natural web income development to be roughly 1%. On a two-year stack, this equates to 9% development organically. Reported web revenues are more likely to decline roughly 3% owing to the non-comparable gadgets, together with the 53rd week, Denizen and footwear, which aren’t included within the income base. Gross margin is forecast to contract about 100 bps, attributable to tariffs and the absence of the 53rd week. Adjusted EBIT margin will come within the band of 12.4-12.6%. EPS is envisioned within the vary of 36-38 cents.
LEVI’s fiscal 2025 reported web income development is now anticipated to be about 3%, up from 1-2% anticipated earlier. For the fiscal yr, it tasks natural web income development of round 6% in contrast with the earlier forecast of 4.5-5.5%.
The gross margin is more likely to be up 100 bps and the adjusted EBIT margin remains to be more likely to be within the band of 11.4-11.6%. Adjusted EPS is envisioned to be $1.27-$1.32, up from $1.25-$1.30. The tax fee is forecast to be 23% for fiscal 2025.
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The Zacks Consensus Estimate for City Outfitters’ present financial-year gross sales signifies development of 5.5% from the year-ago determine. URBN delivered a median earnings shock of 24.8% within the final 4 quarters.
Genesco Inc. GCO operates as a retailer and wholesaler of footwear, attire and equipment, sporting a Zacks Rank of 1 at current. GCO delivered a trailing four-quarter earnings shock of 32.4%, on common.
The Zacks Consensus Estimate for Genesco’s present fiscal-year EPS and gross sales signifies development of 66% and 1.7%, respectively, from the year-ago interval’s reported figures.
Allbirds, Inc. BIRD, a life-style model, at present has a Zacks Rank of two. The corporate delivered a trailing four-quarter earnings shock of 20.7%, on common.
The Zacks Consensus Estimate for BIRD’s present financial-year EPS signifies development of 18.3% from the year-ago determine.
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