Levi’s shift to DTC model pays off with annual revenues up

US denim giant Levi Strauss & Co. has reported growth for the year ended 30 November 2025, with its focus on a direct-to-consumer (DTC) model reaping rewards.

For the fourth quarter, reported net revenues were up 1% to $1.8 billion, with organic net revenues up 5%.

DTC net revenues increased 8% on a reported basis and 10% on an organic basis, comprising 49% of total net revenues. E-commerce grew 19% reported and 22% organic.

The Levi's brand grew 4% in Q4, driven by strength in men's and even higher growth in women's.

In the Americas, net revenues decreased 4% on a reported basis and increased 2% on an organic basis. Within the Americas, the US decreased 7% on a reported basis and was flat on an organic basis.

Meanwhile, in Europe, net revenues increased 8% on a reported basis and 10% on an organic basis. In Asia, net revenues increased 2% on a reported basis and 4% on an organic basis.

Full year 2025 saw Levi’s women’s business up 11%, with both tops and bottoms delivering “double-digit growth”. Organic net revenues were up 7% to $6.3 billion, while ‘adjusted EBIT margin’ expanded to 11.4% - marking the third consecutive year of improvement.

Michelle Gass, President and CEO of Levi Strauss & Co., said: “Over the past few years, we’ve taken bold steps toward becoming a DTC-first, head-to-toe denim lifestyle brand.

“We have narrowed our focus, improved operational execution and built greater agility across the organisation. As a result, we’ve elevated the Levi’s brand and delivered faster growth and higher profitability, as reflected by our Q4 and full year 2025 results.

“While we still have important work ahead, the company is at an inflection point - emerging as a stronger, more resilient global business ready to define the next chapter of LS&Co.”

Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co., added: “We are sustaining our momentum, delivering 5% organic growth in the fourth quarter on top of an 8% increase in the prior year.

“Our success in denim lifestyle has enabled us to expand our addressable market, positioning us for mid-single digit growth in 2026 and beyond. Our disciplined approach to converting growth into profitability has improved adjusted EBIT margin in 2025 for the third year in a row, and we are on track to expand margins further as we strive toward 15%.”

FY26 guidance now includes mid-single digit growth (4-6% reported net revenues, 4-5% organic net revenues) and adjusted EBIT margin expansion to 11.8-12%.