Q2 2025 Levi Strauss & Co Earnings Call Transcript
Key Points
- Levi Strauss & Co (LEVI) reported a 9% increase in organic net revenue for Q2, marking the third consecutive quarter of high single-digit growth.
- The Direct-to-Consumer (DTC) segment grew by 10%, with improved profitability and higher average unit retail (AUR) prices.
- The company's international business saw a 10% growth, with Europe leading at 15%, driven by strong brand presence and partnerships.
- Levi Strauss & Co (LEVI) successfully expanded its product offerings beyond denim, with significant growth in lifestyle categories such as tops, dresses, and outerwear.
- The company raised its full-year guidance for both top-line and bottom-line growth, reflecting confidence in sustained momentum and strategic execution.
- The global operating environment remains challenging, with uncertainties around tariffs and broader consumer behavior impacting future projections.
- Asia's net revenues were flat, with structural changes in markets like India and China affecting growth and operating margins.
- The company faces potential headwinds from tariffs, with an estimated 20 basis points impact on full-year gross margins.
- Despite strong growth, the Wholesale channel is projected to be flat to slightly positive for the full year, indicating cautious expectations.
- Inventory levels increased by 15%, partly due to early product arrivals to navigate tariff impacts, which could affect cash flow management.
Good day, ladies and gentlemen. Welcome to the Levi Strauss & Co. second-quarter fiscal 2025 earnings conference call for the period ending June 1, 2025.
(Operator Instructions) This conference call is being recorded and may not be reproduced in whole or in part without written permission from the company. This conference call is being broadcast over the Internet. A replay of the webcast will be accessible for one quarter on the company's website, levistrauss.com.
I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Co.
Thank you for joining us on the call today to discuss the results for our second-quarter fiscal 2025. Joining me on today's call are Michelle Gass, our President and CEO; and Harmit Singh, our Chief Financial and Growth Officer.
We have posted complete Q2 financial results in our earnings release on the IR section of our website, investors.levistrauss.com. The link to the webcast of
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