US-based clothing retailer Levi Strauss & Co has reported net revenues of $1.4bn for the second quarter (Q2) of 2025, a 6% increase on a reported basis and 9% on organic basis.
Levi Strauss’ direct-to-consumer channel reported an 11% net revenue increase on a reported basis from Q2 2024, while its wholesale reported net revenues were up by 3% against the same period.
The company’s Levi’s brand saw a 9% increase globally on an organic basis.
Levi Strauss’ gross margin saw a 140 basis points increase to 62.6%, primarily due to lower product costs and a favourable channel mix.
The company reported net income from continuing operations of $80m – a considerable increase from the $17m registered a year previously.
The company’s adjusted net income was $89m, and its adjusted diluted earnings per share (EPS) increased to $0.22.
Levi Strauss & Co CEO and president Michelle Gass stated: “We delivered another strong quarter, reflecting broad-based strength across the board — clear evidence that our strategic agenda is gaining traction.
“We’re entering the second half of 2025 from a position of strength as our ambition to transform into a denim lifestyle brand and best-in-class DTC [direct-to-consumer] retailer becomes our reality. Levi’s is a brand that has a rich 172-year heritage and remains a global icon. As we look ahead, Levi’s has an even bolder future with a bigger legacy — and quarter by quarter, we’re building it.”
Levi Strauss has updated its fiscal 2025 guidance, assuming US tariffs on imports from China remain at 30% and from the rest of the world at 10% for the remainder of the year.
The forecast considers only the ongoing business activities, as the Dockers brand has been reclassified under discontinued operations.
Levi Strauss anticipates reported net revenue growth to increase by three percentage points to 1% to 2%, up from a previous estimate of a decrease of 1% to 2%.
Organic net revenue growth projections have also been raised by one percentage point to 4.5% to 5.5%, from 3.5% to 4.5%.
Adjusted diluted EPS has been raised by $0.05 to $1.25 to $1.30, up from $1.20 to $1.25.
Levi Strauss & Co chief financial and growth officer Harmit Singh said: “Given our strong H1 and continued momentum across the business—and despite higher tariffs—we are raising our full-year revenue and EPS expectations.
“The continued inflection of our financial performance is a direct result of our laser focus on the core Levi’s brand and our DTC-first strategy. We are fundamentally becoming a company with a higher growth rate, higher margin profile, stronger cash flows and higher returns on invested capital.”