Levi Strauss & Co (LEVI) investor relations material

Executive summary

• Net revenues increased 7% year-over-year for the quarter, driven by growth across all regions and both DTC and wholesale channels.

• Diluted EPS from continuing operations was $0.31, and adjusted diluted EPS was $0.34, both above guidance.

• The Dockers® U.S. and Canada business was sold for $194.7 million, with the remainder expected to close in early 2026; Dockers® is now reported as discontinued operations.

• Strategic focus on DTC-first, head-to-toe denim positioning and international expansion is yielding robust growth, especially in women's, tops, and e-commerce.

• Project Fuel, a multi-year productivity initiative, continued to drive restructuring and related charges, with the first phase completed and further charges expected.

Financial highlights

• Gross margin reached a record 61.7% for the quarter, up 110 basis points year-over-year, with gross profit up 8.9%.

• Adjusted EBIT margin was 11.8% for the quarter, and adjusted EBIT was $182 million, up 2.5% year-over-year.

• Net income from continuing operations was $122 million for the quarter, up sharply from the prior year.

• DTC sales up 9% organic and 11% reported globally; e-commerce up 16% organic and 18% reported; wholesale net revenues up 5% organic and 3% reported.

• Inventory dollars up 12% year-over-year, with 70% of holiday product already in the U.S.

Outlook and guidance

• Full-year reported net revenue growth guidance raised to ~3%, organic growth to ~6%, and gross margin expansion to 100 basis points.

• Adjusted diluted EPS guidance raised to $1.27–$1.32.

• Q4 organic net revenue growth expected at ~1% (9% on a two-year stack); reported net revenues to be down ~3% due to non-comparable items.

• Q4 gross margin expected to contract ~100 basis points, mainly from tariffs and the absence of a 53rd week.

• Guidance assumes no significant worsening of macroeconomic or tariff conditions.