Levi Strauss’ sales growth extends in Q3, boosted by strong DTC performance

Levi's x Toy Story collection — Revenues in the Americas rose 6 per cent, including a 3 per cent increase in the US. (Source: Levi's)

By Sean Cao Oct 10, 2025

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Levi Strauss & Co has reported another set of strong results for the third quarter, with overall sales boosted by a double-digit growth from the direct-to-consumer (DTC) channel.

The company’s net revenues for the quarter ended August 31 were US$1.5 billion, up 7 per cent year-on-year both on a reported and organic basis.

Revenues in the Americas rose 6 per cent on a reported basis, including a 3 per cent increase in the US. Asia sales surged 12 per cent, and Europe sales increased 5 per cent.

DTC net revenues grew 11 per cent on a reported basis and 9 per cent on an organic basis. The organic growth reflected a 7 per cent increase in the US, a 4 per cent increase in Europe and a 14 per cent increase in Asia.

Wholesale net revenues were up 3 per cent on a reported basis and 5 per cent on an organic basis.

Operating margin improved from 2.3 per cent in the year-ago period to 10.8 per cent. Gross margin increased 110 basis points to 61.7 per cent, driven by favourable channel mix and price increases, offset by the impact of tariffs.

Net income from continuing operations, which excludes the Dockers business, was $122 million compared to $23 million last year.

The company completed the sale of the Dockers intellectual property and operations in the US and Canada for $194.7 million on July 31. The remaining Dockers operations are expected to be sold in the first quarter of next year.

Michelle Gass, president and CEO of Levi Strauss & Co, said the company delivered “another very strong quarter” as it pivots to becoming a DTC-first, head-to-toe denim lifestyle retailer.

“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,” Gass added.

Levi Strauss has once again raised its full-year guidance, expecting net revenues to grow 3 per cent on a reported basis, compared to the upgraded outlook of 1-2 per cent increase provided in the second quarter.

The guidance is based on continuing operations and assumes US tariffs on imports from China remain at 30 per cent and rest-of-world at 20 per cent, the company noted.