Overview
- Adjusted earnings were 34 cents per share on revenue of $1.54 billion, topping Wall Street forecasts with sales up 7% year over year.
- Gross margin expanded about 110 basis points to 61.7% on stronger full-price direct sales, reduced discounting and targeted price increases.
- Direct-to-consumer made up 46% of revenue, with DTC up roughly 9% to 11% and e-commerce growing in the mid-teens during the quarter.
- Levi lifted its fiscal 2025 guidance to adjusted EPS of $1.27 to $1.32 and stronger revenue growth, assuming U.S. tariffs stay at 30% on China and 20% elsewhere.
- Management said fourth-quarter gross margin will face about a one-point hit from tariffs and noted roughly 70% of holiday inventory is secured, while shares fell as much as about 14%.