Levi Strauss & Co. exceeded profit forecasts in the third quarter as its direct-to-consumer (DTC) strategy continued to deliver strong results across regions and categories.
The denim and apparel company posted its fourth straight quarter of high single-digit growth and its 14th consecutive quarter of positive comparable sales, driven by strong performance across both men’s and women’s lines, as well as steady gains in tops and bottoms.
CEO Michelle Gass, who took the helm in January 2024, said on the company’s earnings call that Levi’s has the potential to double its US store count.
The brand currently operates more than 450 stores nationwide. “Our pivot to a DTC-first, head-to-toe denim lifestyle retailer is driving a meaningful inflection in our financial performance,” Gass said.
Levi’s women’s activewear label Beyond Yoga also continues to expand, with new stores opening in Boston, Houston, and two Northern California locations, bringing its total store count to 14.
In an interview with CNBC, Gass confirmed that Levi’s has begun selectively raising prices on some jeans and apparel, with additional increases planned for 2026. “As we’ve been taking these targeted actions, we’ve not seen an impact to demand,” she said, describing the approach as “surgical and thoughtful.”
For the quarter ended Aug. 31, Levi’s reported net income of $218 million ($0.55 per share), compared with $20.7 million ($0.05 per share) in the same period last year. Adjusted earnings came in at $0.34 per share, ahead of analysts’ expectations of $0.31.
Revenue rose 7% year-over-year to $1.54 billion, roughly matching Wall Street forecasts. Direct-to-consumer sales grew 11%, led by gains of 7% in the U.S., 4% in Europe, and 14% in Asia.
Wholesale revenue increased 3%, while e-commerce sales jumped 18% and now account for 46% of total revenue.
Levi’s raised its full-year outlook, now expecting sales growth of around 3% (up from 1%–2%) and adjusted earnings of $1.27–$1.32 per share, compared to prior guidance of $1.25–$1.30.
“With strength across channels, segments and categories, we are raising our full-year outlook and are well-positioned for the holiday season,” Gass said.
“While the macro environment remains complex, the consistency of our performance and operational agility gives me confidence that we will deliver sustained, profitable growth into 2026 and beyond.”
Levi’s products are sold in 120 countries through department stores, retail partners, and its own network of about 3,200 stores and shop-in-shops worldwide.
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