Levi Strauss Raises Guidance After 9% Organic and 14% Reported Q1 Growth
Levi Strauss posted 9% organic and 14% reported Q1 revenue growth, led by double-digit gains in Europe and Asia and 13% growth in its women's segment, while adjusted EPS rose 11% to $0.42. Full-year organic revenue guidance was raised to 4.5%-5.5% and EPS outlook to $1.42-$1.48.
1. Q1 Earnings Highlights
Levi Strauss delivered 9% organic net revenue growth and 14% reported growth in Q1, driven by double-digit increases in Europe and Asia, 10% growth in direct-to-consumer sales, 8% wholesale growth and a 13% rise in the women’s segment. Adjusted diluted EPS climbed 11% to $0.42.
2. Profitability and Cash Flow
Gross margin held at 61.9%, down 20 basis points year over year, while adjusted EBIT margin reached 14.1% excluding advertising and promotion impact. Adjusted free cash flow surged to $152 million, inventory dollars increased 4%, and shareholder returns jumped 163% to $214 million.
3. Guidance and Outlook
The company raised full-year reported revenue growth guidance to 5.5%–6.5% and organic growth to 4.5%–5.5%, and lifted adjusted EPS outlook to $1.42–$1.48. Management pointed to strategic execution, a denim lifestyle pivot and DTC expansion as growth drivers, while noting ongoing distribution center investments and a cautious macro backdrop.