Levi Strauss & Co has increased its outlook for FY25 after reporting solid sales and profit growth in the second quarter.
The company now expects net revenue growth of 1-2 per cent for the full year, reversing the previous guidance of a 1-2 per cent decline.
Organic revenue growth is forecast to 4.5-5.5 per cent, compared to the prior range of 3.5-4.5 per cent.
The retailer noted that the guidance is based on continuing operations, which exclude the Dockers business following its divestment in May.
The outlook also assumes that US tariffs on imports from China remain at 30 per cent and rest of the world at 10 per cent for the remainder of the year.
“We are fundamentally becoming a company with a higher growth rate, higher margin profile, stronger cash flows and higher returns on invested capital,” commented Harmit Singh, chief financial and growth officer.
For the second quarter ended June 1, net revenues rose 6 per cent on a reported basis and 9 per cent on an organic basis to $1.4 billion.
On an organic basis, sales were up 9 per cent in the Americas and 15 per cent in Europe, but were flat in Asia.
Net income from continuing operations was $80 million compared to $17 million in the prior-year period.
“We’re entering the second half of 2025 from a position of strength as our ambition to transform into a denim lifestyle brand and best-in-class DTC retailer becomes our reality,” added president and CEO Michelle Gass. “As we look ahead, Levi’s has an even bolder future with a bigger legacy – and quarter by quarter, we’re building it.”
