Levi's first quarter results for 2025 featured adjusted earnings per share significantly surpassing analyst expectations. Management attributed the quarter’s performance to strong momentum in its Direct-to-Consumer (DTC) business, with double-digit growth driven by higher store productivity and e-commerce strength. CEO Michelle Gass noted, “Direct-to-Consumer continues to be the primary growth driver, up 12%, fueled by positive comp growth, successful new openings, and strong e-com performance.” The company also saw positive contributions from wholesale, particularly in the U.S., and highlighted gains in both men's and women's segments, with notable brand activations such as the Beyonce campaign supporting market share expansion.
Is now the time to buy LEVI? Find out in our full research report (it’s free).
Levi's (LEVI) Q1 CY2025 Highlights:
- Revenue: $1.53 billion vs analyst estimates of $1.54 billion (3.1% year-on-year growth, 1% miss)
- Adjusted EPS: $0.38 vs analyst estimates of $0.28 (35.2% beat)
- Adjusted EBITDA: $253.1 million vs analyst estimates of $205.2 million (16.6% margin, 23.3% beat)
- Management reiterated its full-year Adjusted EPS guidance of $1.23 at the midpoint
- Operating Margin: 12.5%, up from 0% in the same quarter last year
- Locations: 1,222.8 at quarter end, up from 1,187 in the same quarter last year
- Constant Currency Revenue rose 8.6% year on year (-7.7% in the same quarter last year)
- Market Capitalization: $7.46 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Levi's’s Q1 Earnings Call
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Laurent Vasilescu (BNP Paribas) raised concerns about tariff impacts and sourcing breakdown. CEO Michelle Gass highlighted the company’s global supply chain flexibility and early-stage scenario planning, emphasizing ongoing supplier discussions and surgical pricing adjustments.
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Dana Telsey (Telsey Advisory Group) asked about inventory planning and the impact of brand campaigns on women’s growth. CFO Harmit Singh described prudent inventory management and highlighted strong pre-booked wholesale orders, while Gass noted that recent campaigns have driven women’s segment gains and market share.
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Matthew Boss (JPMorgan) requested details on drivers of organic growth and market share trends. Gass emphasized broad-based strength across geographies and channels, particularly DTC, and Singh attributed record gross margins to product mix and full-price selling.
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Ike Boruchow (Wells Fargo) inquired about expense deleverage in the second quarter and international brand risks. Singh pointed to seasonal SG&A patterns and affirmed that international business remains resilient, with no notable impact from geopolitical events so far.
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Oliver Chen (TD Cowen) explored pricing frameworks and the company’s approach to absorbing or passing on tariff costs. Gass underscored a nuanced pricing strategy with sensitivity to premium positioning and recent experience in international markets with price adjustments.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be monitoring (1) Levi’s ability to mitigate tariff impacts through cost actions and pricing; (2) progress on DTC expansion targets, including the effectiveness of new store formats and e-commerce enhancements; and (3) international market growth, particularly in Europe and Asia. Execution on product innovation and inventory management will also be key indicators of sustained profitability.
Levi's currently trades at $18.95, up from $13.48 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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