Q4 2025 Levi Strauss & Co Earnings Call Transcript
Key Points
- Levi Strauss & Co (LEVI) reported a strong year with organic net revenue growth of 7%, driven by broad-based growth across all facets of the business.
- The company strengthened its position as the #1 denim brand globally, holding more market share than the next two competitors combined.
- Levi Strauss & Co (LEVI) accelerated its direct-to-consumer (DTC) transformation, with DTC growing 11% and now comprising approximately half of the total business.
- The women's segment saw significant growth, up 11% for the year, with both tops and bottoms delivering double-digit growth.
- Levi Strauss & Co (LEVI) achieved its highest ever gross margin and adjusted EBIT margin expansion, reflecting strong financial performance.
- The transition to a new third-party distribution center in the US has taken longer than expected, leading to higher transitory distribution costs.
- Gross margin contracted by 100 basis points in the fourth quarter due to the impacts of tariffs.
- The company is facing challenges with higher tariffs, which are impacting profitability.
- Levi Strauss & Co (LEVI) is rationalizing its wholesale footprint, particularly in non-strategic accounts in the US, which may impact growth in that channel.
- The company is navigating a dynamic global environment, which presents ongoing risks and uncertainties.
Good day, ladies and gentlemen, and welcome to the Levi Strauss and Company 4th quarter fiscal year-end earnings conference call for the period ending November 30th, 2025. All parties will be in a listen-only mode until the question-and-answer session, at which time instructions will follow.
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, Levi Strauss.com.
I would now like to turn the call over to Ida Orphan, Vice President of investor relations at Levi Strauss and Company.
Thank you for joining us on the call today to discuss the results for our 4th quarter and fiscal year end. Joining me on today's call are Michelle Goss, our President and CEO, and Harmeet Singh, our Chief Financial and Growth Officer. We'd like to remind you that
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