Levi Strauss & Co delivered a robust third quarter for fiscal 2025, fueled by its strategic shift to a Direct-to-Consumer (DTC)-first model, prompting the company to raise its financial outlook for the full year.

The company’s net revenue grew 7 per cent Y-o-Y on both a reported and organic basis, hitting $1.5 billion for the quarter. This top-line strength translated directly to profitability, with the gross margin expanding by 110 basis points to 61.7 per cent. The company’s management attributed this expansion primarily to a favorable channel mix (more DTC sales) and strategic price increases. Adjusted Diluted EPS also edged up to $0.34, compared to $0.33 in the same quarter last year. Most impressively, the company's net income from continuing operations surged from $23 million in Q3 2024 to a significant $122 million in Q3 2025

The core driver of this performance was Levi's pivot to directly engaging its customers. The DTC Channel saw net revenues jump 11 per cent (reported basis) and accounted for 46 per cent of total net revenues in the quarter.

Within the DTC segment, e-commerce with net revenues soaring by 18 per cent. The Wholesale channel showed resilience, posting a 3 per cent increase in net revenue.

Geographically, Asia emerged as the strongest performer, with net revenue rising by 12 per cent growth, The Americas also delivered solid growth, with revenue increasing by 7 per cent.

Europe contributed positively to the quarter, with revenue also showing an increase.

Following this strong quarter, Levi Strauss leadership expressed confidence in its strategic transformation, forecasting continued strong performance through the holiday season despite the headwinds of a complex macroeconomic environment and higher tariffs. The revised full-year 2025 outlook signals the company's momentum is set to continue.