American clothing brand Levi Strauss & Co reported a resilient fourth quarter (Q4) and a strong full-year (FY) performance, underpinned by continued growth in direct-to-consumer (DTC) and Europe.
For the three-month period ended 30 November 2025, net revenues rose 1% on a reported basis to $1.8bn (£1.31bn), or 5% organically, despite ongoing pressure in wholesale.
The business said Europe was a standout region, with Q4 net revenues up 8% reported and 10% organically, outperforming the Americas, where revenues fell 4% reported but grew 2% organically. In the US, reported revenues declined 7%, although organic performance was flat.
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DTC continued to be the key growth engine, with revenues up 8% and 10% organically.
E-commerce revenues increased 19% reported and 22% organically, while DTC accounted for 49% of total group revenues in Q4. By contrast, wholesale revenues declined 5% on a reported basis and were flat organically.
Michelle Gass, president and chief executive of Levi Strauss & Co, said: “We are well on our way toward realising our strategic ambitions. We have narrowed our focus, improved operational execution and built greater agility across the organization.
“As a result, we’ve elevated the Levi’s brand and delivered faster growth and higher profitability as reflected by our Q4 and full year 2025 results. While we still have important work ahead, the company is at an inflection point, emerging as a stronger, more resilient global business ready to define the next chapter of LS&Co.”
The group’s smaller brands also contributed to growth, with Beyond Yoga delivering Q4 revenue growth of 37% reported and 45% organically.
Operating margin held steady at 11.9%, while adjusted Earnings Before Interest and Taxes (EBIT) margin fell to 12.1% from 13.9% a year earlier.
For the full year, Levi Strauss reported net revenues of $6.3bn (£4.6bn), up 4% reported and 7% organically.
Looking ahead, the company expects mid-single-digit top-line growth in FY 2026 alongside further adjusted EBIT margin expansion, as it continues to prioritise DTC, digital and lifestyle-led category growth.
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