Levi Strauss & Co. (NYSE: LEVI) is a leading global retailer known primarily for its denim products and casual wear. The company recently reported its second-quarter results for fiscal 2025, marking its 13th consecutive quarter of positive comparable sales growth. Levi’s has experienced significant growth overall, showing resilience in its core business during a fluctuating economic landscape.

The company is currently in a rising condition, reporting a 9% increase in organic net revenues, reaching $1.446 billion for the quarter ending June 1, 2025. The growth is primarily driven by a strong direct-to-consumer (DTC) segment, which saw revenues increase by 10% organically, and a steady wholesale performance, up 7%. Additionally, significant growth was noted in the U.S. and international markets, with the U.S. organic sales growing by 7% and international sales increasing by 10%. Women’s collections saw a notable increase of 14%, while men’s products recorded a growth of 6%.

Gross margin expanded to a record 62.6%, up 140 basis points from the same quarter of the previous year, attributed to reduced product costs and a favorable mix of sales channels. Adjusted EBIT margin for the quarter improved by 190 basis points to 8.3%. Selling, general, and administrative (SG&A) expenses represented 54.4% of total net revenues, improving from 54.9% in the previous year.

Adjusted diluted earnings per share surged by 37% to $0.22 compared to $0.16 in Q2 2024. Net income from continuing operations reached $80 million, compared to $17 million in the prior year. The free cash flow for the quarter amounted to $146 million, and the return on invested capital was calculated at 18%.

Additionally, as part of a strategic reshaping of its portfolio, Levi’s indicated a projection for a full-year organic net revenue growth increase to a range of 4.5% to 5.5%, up from previous estimates. The company has raised its estimated adjusted diluted EPS for the year to between $1.25 and $1.30, which now includes a projected net headwind of $0.02 to $0.03 from tariffs.

In summary, Levi Strauss & Co. demonstrated robust financial performance in Q2 2025, with organic net revenues up 9%, a gross margin of 62.6%, and a significant increase in adjusted diluted earnings per share, along with an optimistic outlook for the rest of the fiscal year.