Levi Strauss (NYSE: $LEVI) is a global apparel company, famous for its Levi’s denim jeans. It designs and markets casual wear, jeans, and accessories for all categories of shoppers. On Monday, April 7, 2025, after markets closed, it released its first quarter fiscal 2025 results. Here is a deep dive into the results.
Levi Strauss Q1 Results
For the first quarter of fiscal 2025, Levi Strauss (LEVI) reported revenue of $1.5 billion, missing estimates of $1.54 billion. It reported an adjusted EPS of $0.38, beating estimates of $0.28.
It reported a 12.5% operating margin in Q1, compared to 0.04% last year, while the adjusted EBIT margin was up 400 points YoY to 13.4%, driven by a higher gross margin. Q1 gross margin rose 303 points YoY to 62.1%, driven by lower product costs.
SG&A expenses in Q1 came in at $749 million, compared to $756 million the previous year, while adjusted SG&A rose 1.7% YoY to $744 million. As a percentage of sales, it reported an adjusted SG&A of 48.7% compared to 49.4% the previous year.
Commenting on the results, CEO Michelle Gass said that they “exceeded revenue and profitability expectations in Q1 marking a strong start to the year, another proof point that our transformation strategy is working.”
Shareholder Returns
Levi Strauss announced it had returned around $81 million to shareholders in Q1, a 12% YoY increase. These returns included $51 million in dividend payouts and $30 million in share buybacks. At the end of Q1, it had $560 million remaining under its current share buyback authorization.
Guidance
Levi Strauss maintained its revenue forecast for fiscal 2025. It expects revenue to rise 3.5% to 4.5% in the current fiscal year, while adjusted EPS is forecast to be the same as the previous forecast of $1.20 to $1.25. However, its guidance does not account for the potential impact of tariffs.
Market Performance
Following the mixed Q1 results, LEVI shares soared 13.26% to $5.29 per share in premarket trading on April 8, 2025, as of 8:06 AM in New York. Monday’s closing price of $13.50 was close to its 52-week low of $12.82, which partly explains its double-digit surge in premarket trading after the strong Q1 results, especially the massive improvement in margins. However, LEVI is below its 50 and 200-day moving averages of $17.10 and $18.09, respectively.
Year to date, LEVI is down 21.97%, while in the past six months, it is down 31.33%. The stock has dipped 34.1% in the past 12 months as of Monday’s closing.
Analysts are cautiously optimistic about its future, giving it an overall moderate buy rating. They forecast an average price of $20.58 for the stock, which is a 52.44% upside based on the last closing price. The analysts give a wide range of forecasts, with a high of $25 and a low of $14.
Should You Add LEVI To Your Portfolio In 2025?
Levi Strauss strong Q1 results highlights the company’s resilience. In January the company highlighted its diverse supply chain, spread across 25 countries, which could allow it to mitigate the impact of tariffs.
The company imports only about 1% of its products directly from China, while Mexico accounts for only about 5%. To mitigate the impact of the tariffs, the company is considering surgical price increases. Based on all these factors, LEVI could potentially be a great addition to your portfolio, with the stock price trading at a near 52-week low.
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