Levi Strauss & Co (LEVI) Q4 2025 earnings summary

Executive summary

• Achieved 7% organic net revenue growth for FY2025, with broad-based gains across brands, channels, and geographies; DTC transformation accelerated, with 11% growth and DTC now about half of total business.

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

• Strong brand momentum, market share gains in men's, women's, and youth segments in the U.S.

• Premium Blue Tab collection launched globally, with positive early consumer response.

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

Financial highlights

• FY2025 organic net revenue up 7% year-over-year; Q4 revenues up 5% organic and 1% reported; FY2025 net revenues $6.3B (+4% reported, +7% organic).

• Achieved highest-ever gross margin for FY2025 at 61.7% (+110 bps); Q4 gross margin at 60.8%, down 100 bps due to tariffs.

• Adjusted EBIT margin for FY2025 improved to 11.4%; Q4 adjusted EBIT margin at 12.1%.

• FY2025 adjusted diluted EPS was $1.34 (up from $1.24); Q4 adjusted diluted EPS was $0.41.

• Returned $363M to shareholders in FY2025, including $150M in share buybacks and a 7% dividend increase.

Outlook and guidance

• FY2026 organic net revenue growth expected at 4%-5%, reported growth 5%-6% with FX tailwind.

• Adjusted EBIT margin to expand to 11.8%-12%; adjusted EPS forecasted at $1.40-$1.46, with a 23% tax rate.

• DTC projected to grow high single digits; wholesale expected flat to slightly up due to U.S. account rationalization.

• Gross margin expected flat year-over-year, with tariff impacts offset by pricing, cost reductions, and mix.

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