Levi Strauss & Co. (LEVI) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy LEVI?
Source: SeekingAlpha
Organic net revenue growth 7% year-over-year growth in 2025, driven by broad-based growth across all facets of the business.
Levi's brand growth 7% year-over-year growth in 2025, solidifying its position as the #1 denim brand globally.
DTC (Direct-to-Consumer) growth 11% year-over-year growth in 2025, now comprising approximately half of the total business. Margin expansion was driven by high single-digit comp growth and a more efficient operating structure.
Wholesale channel growth 4% year-over-year growth in 2025, supported by an expanded lifestyle assortment and new distribution.
Women's category growth 11% year-over-year growth in 2025, with double-digit growth in both tops and bottoms.
Men's category growth 5% year-over-year growth in 2025.
Gross margin Achieved the highest-ever gross margin in 2025, though Q4 gross margin contracted by 100 basis points to 60.8% due to tariffs, partially offset by pricing actions and higher full-price selling.
Adjusted EBIT margin Expanded by 70 basis points in 2025, reflecting disciplined growth conversion into profitability.
Q4 total company revenues Increased 5% year-over-year, with 7% growth during the November-December holiday season, marking the highest holiday revenue in a decade.
Beyond Yoga growth 45% year-over-year growth in Q4 and 17% growth for the full year 2025, driven by product expansion and strong DTC performance.
Adjusted diluted EPS (Q4) $0.41, higher than expectations, despite a $0.03 headwind from a higher tax rate.
Inventory levels Reported inventory dollars up 9% year-over-year, with units up 2%, primarily driven by tariffs.
Americas net revenues (Q4) Up 2% year-over-year, with U.S. DTC business growing 6% and LatAm business up 8%.
Europe net revenues (Q4) Up 10% year-over-year, led by double-digit growth in the U.K. and Germany.
Asia net revenues (Q4) Up 4% year-over-year, with double-digit growth in key markets like Japan and Turkey.
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Analyst Views on LEVI
Wall Street analysts forecast LEVI stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 21.760
Low
26.00
Averages
26.50
High
27.00
Current: 21.760
Low
26.00
Averages
26.50
High
27.00
About LEVI
Levi Strauss & Co. is an apparel company. The Company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Levi Strauss Signature, Denizen, Dockers and Beyond Yoga brands. The Company operates through three geographical segments: Americas, Europe, and Asia. It designs, markets and sells directly or through third parties and licensee's products that include jeans, casual and dress pants, tops, shorts, skirts, dresses, jackets, footwear, and related accessories for men, women and children around the world. The Company’s products are sold in more than 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,400 retail stores and shop-in-shops. Outside the United States, department stores, specialty retailers, franchised or other brand-dedicated stores and shop-in-shops are its primary distribution channels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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