Levi Strauss & Co Exceeds Expectations with Strong Q1 2025 Results
Levi Strauss & Co has kicked off its fiscal year 2025 with a bang, exceeding expectations across sales, margins, and EPS. The company's shift to becoming a DTC-first (Direct-to-Consumer) business is driving strategic and financial value, with a momentum that's hard to ignore.
In the first quarter of fiscal 2025, Levi Strauss & Co achieved high single-digit organic net revenue growth, up 9%. This growth was driven primarily by its Direct-to-consumer segment, which saw a 12% increase, fueled by positive comp growth, successful new openings, and strong e-commerce performance. The company's wholesale business also delivered another quarter of positive growth, up 5%, with the U.S. business further accelerating to an 8% increase, while international was strong as well, up 9%. Levi Strauss & Co extended its market leadership with share gains across both women's and men's segments.
Michelle Gass, President and CEO of Levi Strauss & Co, expressed pride in the company's ability to deliver these strong results while fundamentally changing the way it works. "We're proud to be able to deliver these strong results while fundamentally changing the way we work as part of our hard pivot towards becoming a best-in-class omnichannel retailer," she said.
Gass also highlighted the company's strength in navigating challenging times, citing its iconic brand with more than 170 years of history and its deep connection with consumers. "We know that people turn to the brands they know and trust, especially during times like these. And that's what Levi has always stood for: value and quality," she said.
The company's ability to navigate dynamic macro environments was also highlighted by Gass, who noted that almost 60% of its revenue is generated outside the U.S. This, combined with its scale, agile global supply chain, deep vendor relationships, and strong balance sheet, positions Levi Strauss & Co well to weather any storm.
Harmit Singh, Chief Financial and Growth Officer, provided additional context on the company's Q1 performance, highlighting the momentum behind its Direct-to-consumer business. He also noted that the company is committed to delivering value to shareholders through its hard pivot towards becoming a best-in-class omnichannel retailer.
Levi Strauss & Co's Q1 2025 results demonstrate the company's ability to adapt and thrive in a rapidly evolving market environment. With its iconic brand, agile supply chain, and strong financial foundation, Levi Strauss & Co is well-positioned to navigate any challenges that come its way and continue to deliver value to shareholders.
