Q3 2025 Levi Strauss & Co Earnings Call Transcript
Key Points
- Levi Strauss & Co (LEVI) delivered its fourth consecutive quarter of high single-digit organic revenue growth, driven by strong performance across both direct-to-consumer (DTC) and wholesale channels.
- The company reported a 9% increase in international business, with significant growth in Asia, particularly in markets like India, Japan, Korea, and Turkey.
- Levi Strauss & Co (LEVI) raised its full-year revenue and EPS guidance, reflecting confidence in its strategic execution and financial performance.
- The DTC-first strategy resulted in a 9% increase in global direct-to-consumer sales, with significant margin expansion and improved store productivity.
- The company's women's business continues to show strong growth, up 12% year-to-date, supported by successful marketing campaigns and product innovations.
- Levi Strauss & Co (LEVI) faces headwinds from higher tariffs, which are expected to impact gross margins by approximately 70 basis points for the full year.
- The U.S. wholesale channel is expected to decline in Q4 due to a strong prior-year comparison and the absence of a 53rd week.
- The company is experiencing increased distribution costs due to the transition to a new distribution center network, impacting short-term margins.
- Despite strong international growth, the European market experienced weather-related challenges, affecting foot traffic in June and July.
- The company is taking a conservative approach to Q4 guidance due to macroeconomic uncertainties and potential impacts on consumer demand.
Good day, ladies and gentlemen, and welcome to the Levi Strauss & Co., third-quarter fiscal 2025 earnings conference call for the period ending August 31, 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 and 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 & Company.
Thank you for joining us on the call today to discuss the results for our third quarter of 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'd like to remind you that we will be making forward-looking statements based on current expectations, and those statements are subject
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