Levi Strauss & Co. anticipates a brighter financial future following robust sales and profit increase in the second quarter. The company has revised its net revenue growth forecast for FY25, projecting a rise of 1-2% compared to the earlier prediction of a 1-2% decline.
The expected organic growth in revenue has also been adjusted. Levi Strauss & Co. now projects an increase of 4.5-5.5%, a significant improvement from the earlier estimate of 3.5-4.5%. These expectations are centered on the company’s continuing operations, excluding the Dockers business, which was divested earlier in May.
The company’s forecasts take into consideration the current tariff rates. It anticipates that the US tariffs on imports from China will persist at 30%, and the remaining global tariffs will remain at 10% for the rest of the year.
Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co., expressed confidence in the company’s future, asserting, “We are fundamentally evolving into a higher growth, higher margin organization, with enhanced cash flows and returns on invested capital.”
The second quarter, which concluded on June 1, was a strong one for Levi Strauss & Co. The company achieved a 6% increase in net revenues on a reported basis and a 9% increase on an organic basis, culminating in a total revenue of US$1.4 billion.
Regionally, organic sales rose 9% in the Americas and 15% in Europe. However, sales remained stagnant in Asia. Net income from continuing operations also witnessed a remarkable increase, rising from $17 million in the previous year to $80 million.
The company’s President and CEO, Michelle Gass, expressed optimism about the company’s future. She stated that Levi Strauss & Co. is entering the second half of 2025 with a strong foundation. The company continues to strive towards becoming a leading denim lifestyle brand and a top direct-to-consumer retailer. Gass is confident that Levi’s future is brighter and its legacy larger, and the company is steadily building towards this vision quarter by quarter.
What is the revised net revenue growth forecast for Levi Strauss & Co. for FY25?
The company now expects a 1-2% increase in net revenue, a reversal from the previous prediction of a 1-2% decline.
What is the projected organic revenue growth for the company?
The revised estimate for organic revenue growth is 4.5-5.5%, up from the earlier forecast of 3.5-4.5%.
How did Levi Strauss & Co. perform in the second quarter?
The company reported a 6% increase in net revenues on a reported basis and a 9% increase on an organic basis. Net income from continuing operations rose to $80 million, a significant increase from $17 million in the previous year.
