Levi Strauss Reports 6.4% Revenue Growth and Significant Net Income Increase in Q2 Fiscal 2025

Levi Strauss & Co. reported a significant increase in financial performance for the second quarter of fiscal 2025, with net revenues reaching $1.446 billion, a 6.4% increase from $1.359 billion in the same period last year. The company’s net income from continuing operations also saw a substantial rise, amounting to $79.6 million compared to $17.2 million in the prior year, reflecting a notable improvement in operating income, which increased to $108 million from $20.9 million. The operating margin improved to 7.5%, up from 1.5% in the previous year, driven by higher gross profit and lower restructuring charges.

In the first six months of fiscal 2025, Levi Strauss reported total revenues of $2.973 billion, up 4.7% from $2.839 billion in the same period of 2024. The company’s net income for the first half surged to $219.8 million, compared to just $7.3 million in the prior year. This growth was attributed to a reduction in restructuring charges, which fell to $13.5 million from $168.2 million, alongside an increase in gross profit margins, which rose to 62.3% from 60.0%.

Strategically, Levi Strauss is undergoing significant changes, including the planned sale of its Dockers® business, which has been classified as discontinued operations. The company entered into a definitive agreement to sell the Dockers® brand for an initial value of $311 million, with potential future earnings of up to $391 million based on performance. This decision follows the discontinuation of the Denizen® brand, with operations winding down as of March 2025. The company is also implementing "Project Fuel," a multi-year initiative aimed at optimizing operations and reducing costs, which has already resulted in restructuring charges.

Operationally, Levi Strauss has expanded its direct-to-consumer (DTC) channel, which now accounts for 51% of total net revenues, up from 48% in the previous year. The company operated 1,183 stores in 39 countries as of June 1, 2025, and reported a 15% increase in inventory, reflecting preparations for anticipated sales growth. The Americas region contributed significantly to revenue growth, with DTC sales driven by increased traffic and e-commerce performance. The company also noted that its international business, particularly in Europe and Asia, continues to be a strong contributor to overall revenue.

Looking ahead, Levi Strauss remains optimistic about its financial outlook, despite potential challenges from macroeconomic conditions, including inflation and changing consumer spending patterns. The company plans to continue focusing on its DTC strategy, enhancing its product offerings, and managing costs effectively to sustain growth. The anticipated completion of the Dockers® sale and the ongoing restructuring efforts are expected to further streamline operations and improve profitability in the coming quarters.