Levi's raises full-year outlook as DTC-first strategy pays off

Levi Strauss & Co. has reported a 7% increase in net revenue for the third quarter ended 31 August 2025, driven by continued momentum in its direct-to-consumer (DTC) strategy.

DTC net revenues rose 11% on a reported basis and 9% on an organic basis, reflecting "strong" performance across key markets. E-commerce revenue performed particularly well, while overall DTC accounted for 46% of total net revenues in the third quarter.

Wholesale net revenues grew 3% on a reported basis and 5% on an organic basis.

For the third quarter, Levi Strauss & Co. shared the following regional results: 

• Americas - net revenues up 6% reported and 7% organically
• Europe - net revenues up 5% reported and 3% organically.
• Asia: net revenues up 12% on both a reported and organic basis.

Michelle Gass, President and Chief Executive Officer at Levi Strauss & Co, said: "We delivered another very strong quarter as our pivot to becoming a DTC-first, head-to-toe denim lifestyle retailer is driving a meaningful inflection in our financial performance.

"While the macro environment remains complex, the consistency of our performance and operational agility gives me confidence that we will deliver sustained, profitable growth into 2026 and beyond."

Looking ahead, Levi Strauss now expects reported net revenue growth of approximately 3%, an increase from the prior outlook of 1% to 2%.

On July 31, the business completed the sale of the Dockers intellectual property and operations in the US and Canada for gross proceeds of $194.7 million. The sale of the remaining international Dockers operations is expected to close in the first quarter of 2026.

As a result, the company's updated guidance reflects continuing operations only, with Dockers now classified as discontinued operations. The outlook also assumes no significant deterioration in macroeconomic conditions, including inflationary pressures, recession risks, supply chain disruptions, tariffs, or currency volatility.

Harmit Singh, Chief Financial & Growth Officer of Levi Strauss & Co, added: "With four consecutive quarters of high-single-digit growth and record gross margins driven by our focus on profitability across the organisation, we are raising our full-year outlook. We have built strong momentum that positions us well to continue delivering strong shareholder value next year and in the years to come."