Levi Strauss (LEVI) reported strong third-quarter results, driven by continued strength in its direct-to-consumer (DTC) strategy. Looking ahead, Levi’s raised its full-year guidance, now expecting 3% reported revenue growth. Despite positive results, LEVI stock was down 6% in after-hours trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Earnings per share climbed 3% year-over-year to $0.34, and surpassed the analysts’ consensus estimate of $0.31 per share. Further, sales increased by 7% year-over-year to $1.5 billion. Also, the reported figure was in line with the analysts’ expectations. Levi’s DTC sales rose 11% year-over-year and now make up 46% of total revenue. Meanwhile, e-commerce jumped 18%.
The company returned $151 million to shareholders in Q3, including $55 million in dividends. Also, it launched a $120 million accelerated share repurchase program during the quarter. So far, it has bought and canceled about five million shares.
Looking ahead, CEO Michelle Gass said, “With strength across channels, segments and categories, we are raising our full-year outlook and are well-positioned for the holiday season. 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.”
Full Year 2025 Outlook Raised
The company raised its full-year guidance, backed by strong performance. It now expects net revenue growth of 3%, compared with 1% to 2% previously expected. Also, adjusted EPS is forecasted between $1.27 and $1.32, up from prior estimates of $1.25 to $1.30. For reference, analysts were expecting an adjusted EPS of $1.31.
It is worth noting that Levi’s 2025 outlook focuses only on its ongoing businesses, as the Dockers business is now counted separately. The forecast also assumes that current tariffs — 30% on Chinese imports and 20% from other regions — will remain in place through year-end.
Is LEVI Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on LEVI stock based on 10 Buys and three Holds assigned in the past three months. The average LEVI price target of $25.17 per share implies 1.82% upside potential.
However, it’s worth noting that estimates will likely change following today’s earnings report.
