Levi Strauss & Co. Soars to New Heights in Q2 2025: Strong Revenue Growth, Expanded Margins, and a Bright Outlook
Levi Strauss & Co., the iconic American clothing company, has announced its second-quarter fiscal 2025 results, exceeding expectations across sales, margins, and earnings per share (EPS). In a call with investors and analysts, the company's leadership shared highlights of a standout quarter marked by broad-based revenue growth, strong margin expansion, and increased confidence in their top and bottom line outlook.
Michelle Gass, President and CEO of Levi Strauss & Co., expressed her enthusiasm for the company's performance, stating, "We delivered another standout quarter exceeding expectations across sales, margins, and EPS." The company reported a 9% increase in organic net revenue growth, with its direct-to-consumer business experiencing a 10% boost. This marks the 13th consecutive quarter of positive comparable sales growth for Levi Strauss & Co., accompanied by increasing profitability across channels.
Harmit Singh, Chief Financial and Growth Officer, highlighted the company's progress in transforming its business over the last 18 months. He noted that Levi Strauss & Co. has accelerated its shift toward becoming a DTC-first business, with owned and operated channels now representing over half of its business. This strategic move has led to consistent, healthy comparable sales growth alongside improving profitability.
The company's wholesale business also experienced growth, rising 7%, while the U.S. segment maintained solid momentum at 7%. International performance was particularly strong, driven by outstanding results in Europe. Additionally, Levi Strauss & Co. saw significant gains in its core categories and key focus areas, such as women's and tops.
As Michelle Gass reflected on the company's progress, she emphasized that "we've made significant strides in accelerating our shift toward becoming a DTC-first business across both brick-and-mortar and e-commerce." This transformation has enabled Levi Strauss & Co. to expand its assortment with greater discipline, rationalize SKUs, and introduce newness that delivers stronger productivity and higher full-price sell-through.
Harmit Singh also touched on the company's guidance for the remainder of 2025, stating that they have arrived at the midpoint of the year in a strong position. He noted that Levi Strauss & Co. is confident in its top and bottom line outlook, with expectations to raise their guidance later in the call.
Levi Strauss & Co.'s Q2 2025 results demonstrate a company on the upswing, driven by strategic priorities and accelerated transformation efforts. As Michelle Gass concluded, "We are making measurable progress in our evolution from a denim bottoms business to a full head-to-toe apparel lifestyle brand." This forward momentum is expected to continue into the second half of the year, solidifying Levi Strauss & Co.'s position as a leader in the apparel industry.
