Levi’s Strengthens Its Leadership in the Denim Industry and Raises Forecasts for 2025

Levi’s exceeds financial expectations in 2025 and reinforces its global leadership with a strategy focused on innovation and direct-to-consumer.

Levi Strauss & Co., a global denim icon, has confirmed its strong market position with second-quarter financial results that significantly surpassed expectations. Under the leadership of CEO Michelle Gass, who took office just over a year ago, the brand has accelerated its transformation towards a direct-to-consumer model, driving both innovation and sustainable growth.

The company reported revenues of $1.4 billion in the second quarter, representing a 6% increase compared to the same period last year and 9% organic growth. Adjusted earnings reached $89 million, or 22 cents per diluted share, far exceeding analysts’ projections of 13 cents per share. As a result, Levi’s shares rose 7.3% in after-hours trading, reflecting investor confidence.

One of the key drivers behind this performance is the strategy focused on the direct-to-consumer channel, which now accounts for 50% of Levi’s global business. This segment recorded 10% organic growth during the quarter, with particular strength in international markets. Meanwhile, the wholesale channel also showed solid results, with a 7% increase in organic sales.

Levi’s is betting on expanding its positioning beyond traditional jeans. With new strategic collaborations, such as the recent partnership with Nike and high-impact campaigns featuring Beyoncé Knowles-Carter, the brand is establishing itself as a lifestyle reference centred on denim. The company is focused on offering a value proposition that encompasses head-to-toe apparel, remaining true to its DNA while diversifying its range.

Consumer resilience has been another decisive factor. Despite global economic uncertainty and trade tensions, Levi’s has managed to maintain its leadership in worldwide market share. The company continues to face tariffs of 30% on products from China and 10% in other regions, representing an impact of between $25 and $30 million. Nevertheless, Levi’s has mitigated these effects through efficient cost management, supplier negotiations, and a focus on full-price sales.

Based on its strong results and market outlook, Levi’s has raised its full-year organic revenue growth forecast to a range of 4.5% to 5.5%, above the previous estimate. It also increased its adjusted earnings per share guidance to between $1.25 and $1.30. This forecast does not include the Dockers business, which is currently being sold to Authentic Brands Group.

Levi’s vision of becoming a $10 billion company is getting closer. With a clear strategy, a broader portfolio than ever, and a brand that connects with new generations worldwide, Levi’s is positioned as a key player in the future of fashion retail.