Levi's closed Q4 with sales essentially unchanged from the previous year, but results surpassed Wall Street’s revenue and profit expectations. Management attributed performance to ongoing gains in its direct-to-consumer (DTC) channel, progress in expanding its product assortment beyond denim, and continued momentum in international markets. CEO Michelle Gass noted that Levi’s “cemented our position as the number one share for men’s, women’s, and youth” during the period, highlighting broad-based growth across demographics and categories. The company also saw strong holiday sales, with new tops and outerwear lines resonating with consumers.
Is now the time to buy LEVI? Find out in our full research report (it’s free for active Edge members).
Levi's (LEVI) Q4 CY2025 Highlights:
- Revenue: $1.77 billion vs analyst estimates of $1.71 billion (flat year on year, 3.4% beat)
- Adjusted EPS: $0.41 vs analyst estimates of $0.39 (4.7% beat)
- Adjusted EBITDA: $268.2 million vs analyst estimates of $268.1 million (15.2% margin, in line)
- Adjusted EPS guidance for the upcoming financial year 2026 is $1.43 at the midpoint, missing analyst estimates by 3.3%
- Operating Margin: 11.9%, in line with the same quarter last year
- Locations: 1,231 at quarter end, down from 1,276 in the same quarter last year
- Constant Currency Revenue rose 5% year on year (7% in the same quarter last year)
- Market Capitalization: $7.58 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 From Levi's’s Q4 Earnings Call
- Laurent Vasilescu (BNP Paribas) asked about gross margin guidance and the impact of tariffs. CFO Harmit Singh explained that while tariffs remain a headwind, mitigation efforts such as pricing actions and cost reductions are expected to offset their effects over the year.
- Matthew Boss (JPMorgan) inquired about Levi’s ability to outperform the denim category and sustain growth after a strong holiday season. CEO Michelle Gass stated the company is “making a big transformation” beyond denim bottoms, pointing to expansion in tops, women’s, and non-denim categories as ongoing drivers.
- Jay Sole (UBS) questioned the potential for higher DTC margins. Gass responded that operational leverage, enhanced merchandising, and improved planning systems are expected to continue boosting DTC profitability.
- Bob Durbel (BTIG) sought more detail on Europe’s outperformance and the Blue Tab premium line. Singh credited broad-based growth in major markets and strong wholesale partnerships, while Gass emphasized the early success and future potential of Blue Tab in the premium segment.
- Gabriela Gar (TD Cohen) asked about supply chain improvements and AI’s role in efficiency. Gass and Singh detailed progress in shortening lead times, increasing global consistency, and using AI-driven systems to streamline operations and improve inventory turns.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of DTC margin expansion and rollout of new AI-driven retail tools, (2) the company’s ability to offset tariff and distribution cost pressures without sacrificing demand, and (3) continued gains in international markets—particularly Europe and Asia, where product and channel expansion have shown momentum. Progress on premium product launches and efficiency in the U.S. distribution transformation will also be important markers.
Levi's currently trades at $19.37, down from $20.47 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.