Levi Strauss & Co (LEVI) Q4 2024 earnings summary

Executive summary

• Delivered strong Q4 and full-year results, with Q4 2024 net revenues up 12% to $1.84B and organic net revenues up 8%.

• Sharpened focus on core Levi's brand by exiting Denizen, announcing exit of footwear, and preparing for Dockers sale.

• Accelerated DTC transformation, with DTC comprising 45% of organic net revenues and achieving high single-digit comp growth.

• Stabilized wholesale trends and advanced as a lifestyle apparel brand with robust product pipeline.

• Full-year 2024 net revenues were $6.36B, up 3% year-over-year; adjusted net income was $503M.

Financial highlights

• Q4 net revenues up 12% reported, 8% organic; full-year organic net revenue growth of 3%.

• Record gross margin of 61.3% for Q4, 60% for the year; Q4 adjusted EBIT margin expanded to 13.4%.

• Q4 net income was $183M, up 44% year-over-year; adjusted net income was $202M, up 13%.

• Adjusted free cash flow for FY24 was $671M, a record high; ROIC improved to 14.9%.

• Returned $289M to shareholders in FY24, up 45% year-over-year.

Outlook and guidance

• 2025 organic net revenue growth expected at 3.5%-4.5%; reported net revenues expected down 1%-2% due to FX and business exits.

• High single-digit organic growth in DTC, flat wholesale expected for 2025.

• Gross margin expected to expand 100 bps to ~61%; EBIT margin projected at 10.9%-11.1%.

• Adjusted diluted EPS guidance: $1.20-$1.25, including $0.20 headwind from tax and FX.

• CapEx planned at $260 million, with 50-60 net new stores expected in 2025.