Fashion
US’ Levi Strauss posts 7% YoY Q3 revenue growth, raises FY25 outlook
The regional growth was led by Asia (up 12 per cent), followed by the Americas (up 6 per cent) and Europe (up 5 per cent). Meanwhile, Beyond Yoga reported net revenues of $33 million, up 2.5 per cent.
Levi Strauss & Co has reported net revenues of $1.5 billion in Q3 FY25, up 7 per cent YoY, led by strong growth in Asia (12 per cent), the Americas (6 per cent), and Europe (5 per cent).
Net income rose to $122 million, with DTC sales up 11 per cent.
The company raised its FY25 outlook, projecting 3 per cent revenue growth and higher EPS of $1.27–1.32.
The direct-to-consumer (DTC) net revenues increased 11 per cent on a reported basis and 9 per cent on an organic basis. DTC growth on an organic basis reflected a 7 per cent increase in the US, a 4 per cent increase in Europe and a 14 per cent increase in Asia. Net revenues from e-commerce grew 18 per cent on a reported basis and 16 per cent on an organic basis. DTC comprised 46 per cent of total net revenues in Q3. Wholesale net revenues increased 3 per cent on a reported basis and 5 per cent on an organic basis.
The operating margin rose to 10.8 per cent from 2.3 per cent a year earlier, while gross margin improved 110 basis points (bps) to 61.7 per cent. The net income from continuing operations surged to $122 million from $23 million, while adjusted net income stood at $136 million. Diluted earnings per share (EPS) from continuing operations rose to $0.31 from $0.06.
“We delivered another very strong quarter as our pivot to becoming a DTC-first, head-to-toe denim lifestyle retailer is driving a meaningful inflection in our financial performance,” said Michelle Gass, president and CEO at Levi Strauss. “With strength across channels, segments and categories, we are raising our full-year outlook and are well-positioned for the holiday season.”
“Our Q3 results demonstrate the power of our strategic transformation, with strong financial performance exceeding expectations across all key metrics including sales, gross margin, adjusted EBIT margin and adjusted diluted EPS,” said Harmit Singh, chief financial and growth officer of Levi Strauss & Co. “With four consecutive quarters of high-single-digit growth and record gross margins driven by our focus on profitability across the organisation, we are raising our full-year revenue and adjusted diluted EPS expectations. We have built strong momentum that positions us well to continue delivering strong shareholder value in the years to come.”
For the full fiscal 2025, Levi Strauss & Co has raised its net revenue outlook, now expecting growth of 3 per cent—up from the earlier forecast of 1 to 2 per cent. The company also anticipates organic net revenue growth of about 6 per cent, compared to the prior projection of 4.5 to 5.5 per cent. The gross margin expansion has been revised upward to 100 bps from 80 bps, with the adjusted EBIT margin maintained between 11.4 and 11.6 per cent. The effective tax rate remains at approximately 23 per cent, and adjusted diluted earnings per share have been raised to a range of $1.27 to $1.32, up from the earlier $1.25 to $1.3.
Fibre2Fashion News Desk (SG)
The move comes as the US textile industry continues to face structural challenges stemming from trade agreements and tariff imbalances over the past two decades. These factors have contributed to a broader decline in domestic manufacturing, including textiles, the USDA said in a press release.
USDA has announced 2026 payments under the Pima Cotton and Wool Trust Funds to support domestic textile manufacturers.
The schemes aim to offset tariff inversion impacts and boost competitiveness.
Backed by the 2014 Farm Bill, the programmes provide financial relief to cotton and wool producers, encouraging domestic production and industry revival.
A key concern highlighted is tariff inversion, where duties on imported fabrics exceed those on finished apparel, incentivising offshore production. The trust fund payments are designed to offset this imbalance by providing financial support equivalent to the benefits manufacturers would receive under more favourable tariff conditions.
“US textile companies produce world-renowned quality products and employ a highly skilled workforce,” said Stephen A Vaden, deputy secretary of Agriculture. “These payments strengthen our domestic manufacturers and ensure a fair playing field for American textiles, helping rebuild this important industry. More American companies should take advantage of this program and manufacture more of the clothing we all wear here in the USA.”
The Pima Cotton Trust, established under section 12314 of the 2014 Farm Bill, is funded through 2031 with $16 million annually from the Commodity Credit Corporation (CCC). It aims to mitigate economic injury caused by higher tariffs on cotton fabric compared with certain cotton apparel imports.
Under the programme, 25 per cent of funds are allocated to associations promoting Pima cotton, another 25 per cent to US yarn spinners producing ring-spun cotton yarn, and the remaining 50 per cent to domestic manufacturers that cut and sew cotton shirts using imported fabric.
Similarly, the Wool Trust, created under Section 12315 of the 2014 Farm Bill, is funded through 2031 with up to $30 million annually. It supports manufacturers affected by tariff disparities in wool products.
The Wool Trust provides payments to worsted wool fabric producers, enables monetisation of tariff-rate quotas, offers duty compensation for wool inputs, and refunds duties on selected wool imports.
Applications for the Pima Cotton Trust close on March 15 each year, while the deadline for the Wool Trust is March 1. Payments are mandated to be made by April 15.
Fibre2Fashion News Desk (SG)
The growth rate was 1.1 per cent points higher than that recorded in the fourth quarter of 2025, indicating improved momentum in industrial activity. On a month-on-month (MoM) basis, industrial output increased by 0.28 per cent in March.
China’s industrial output grew 6.1 per cent year on year (YoY) in Q1 2026, accelerating from the previous quarter.
Growth was driven by manufacturing and mining, while utilities posted moderate gains.
On a monthly basis, output rose 0.28 per cent in March, signalling stable industrial momentum.
The data reflects resilience in large-scale enterprises, supported by improving demand conditions.
Industrial output, a key economic indicator, measures the activity of large enterprises with an annual main business turnover of at least ¥20 million (~$2.91 million).
Sector-wise, the mining industry’s value-added output increased by 6 per cent year on year (YoY) during the quarter, while the manufacturing sector registered a stronger growth of 6.4 per cent. Meanwhile, the production and supply of electricity, heat, gas, and water rose by 4.3 per cent, said Chinese media reports.
Fibre2Fashion News Desk (JP)
Italy’s apparel exports declined **.** per cent year on year to $*,***.** million in January ****, down from $*,***.** million in January ****. Imports also fell **.** per cent to $***.** million, compared to $*,***.** million a year earlier, indicating a broad-based slowdown in trade flows at the start of the year, according to *fashion.com/market-intelligence/texpro-textile-and-apparel/” target=”_blank”>sourcing intelligence tool TexPro.
The January contraction comes amid a broader environment of cautious retail demand and tighter inventory management across Europe. Nevertheless, the strong full-year **** figures indicate that Italy’s apparel sector continues to maintain stable trade fundamentals, supported by diversified export markets and a balanced sourcing network.
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