Levi Strauss & Co (LEVI) Q4 2025 earnings summary

Executive summary

• Achieved 7% organic net revenue growth for FY 2025, with broad-based gains across brands, channels, and geographies, and DTC comprising 49% of Q4 revenues with 19% e-commerce growth.

• Adjusted EBIT margin improved for the third consecutive year, reaching 11.4% for FY 2025, with significant margin expansion in DTC and strong holiday sales.

• Women's business grew 11%, outpacing men's at 5%, with both tops and bottoms delivering double-digit growth.

• Sale of Dockers® U.S. and Canada operations completed; global sale expected by Q1 2026.

• Brand momentum supported by innovative product pipeline, cultural marketing, and premium segment expansion.

Financial highlights

• FY 2025 net revenues: $6.3B (+4% reported, +7% organic); Q4 net revenues: $1.8B (+1% reported, +5% organic).

• Gross margin for FY 2025 reached a record 61.7% (+110 bps), with Q4 gross margin at 60.8% (down 100 bps due to tariffs).

• Adjusted EBIT margin for Q4 was 12.1% (down from 13.9%), and for FY 2025 expanded 70 basis points year-over-year.

• Returned $363 million to shareholders in 2025, including a 7% dividend increase and $150 million in share buybacks.

• Adjusted free cash flow for FY 2025: $308M; cash and cash equivalents at year-end: $758M.

Outlook and guidance

• FY 2026 guidance: reported net revenues growth of 5–6%, organic growth of 4–5%.

• DTC projected to grow high single digits, with 50-60 net new stores and continued e-commerce expansion.

• Adjusted EBIT margin expected to expand to 11.8–12.0%, with full-year adjusted diluted EPS forecasted at $1.40–$1.46.

• CapEx planned at $230 million, 3.5%-4% of revenues, focused on store openings and digital investments.

• Guidance assumes stable macroeconomic conditions and no significant new tariffs or disruptions.