Levi Strauss & Co. on Wednesday reported second-quarter earnings and revenue that beat projections, and again raised its full-year outlook.
Shares were down 5.7% in late Wednesday trading, after closing down 1.2% in regular trading, at $24.37. Levi's stock is up nearly 26% over the past 12 months.
For the quarter ended May 31, the jeans and apparel designer and maker reported adjusted earnings of 28 cents a share on revenue of $1.56 billion, up 8%.
Analysts expected the company to report adjusted earnings of 24 cents a share on sales of $1.52 billion, according to FactSet.
Levi's Brand sales increased 9% to $815 million in the Americas, including 5% in the U.S. Sales increased 4% in Europe, to $420 million, and increased 10% in Asia, to $284 million.
Analysts' revenue projections included $779 million from the Americas, $423 million from Europe, and $276 million from Asia.
Beyond Yoga sales were up 16% to $43 million, above the $40 million expected. Direct-to-consumer net revenue increased 11%, and wholesale net revenue rose 5%.
"The Levi's brand is connecting with consumers around the world in more powerful ways than ever before, and our Q2 results are another proof point that our strategies are working and our team is executing," said President and CEO Michelle Gass, in a statement.
"Our evolution into a DTC-first, denim lifestyle company -- with a much larger addressable market -- is translating to faster growth and higher profitability," she said, adding that the company is "still in the early stages" of a long-term growth journey.
Under Gass' leadership, Levi's has expanded its assortment of tops, dresses, and non-denim bottoms, and shifted its focus from wholesale to direct-to-consumer sales, including via e-commerce.
Chief Financial Officer Harmit Singh said the strong quarter was driven by broad-based growth across markets, channels, and categories, which translated into higher profitability through gross margin expansion and disciplined selling, general, and administrative leverage.
"Given our strong first-half results, we are passing through our full Q2 beat and raising our full-year guidance. We are also increasing our dividend," he said.
Levi's declared a dividend of 16 cents a share, up 14% year over year, totaling about $62 million, payable on Aug. 5 to Class A and Class B shareholders of record at the close of business on July 22.
Levi's returned $53.9 million in dividends to shareholders in the quarter, up 5% year over year. The $200 million accelerated share-repurchase program launched in the first quarter is expected to be settled in the third quarter.
Levi's raised its full fiscal-year net revenue growth guidance to 7.0% to 7.5% year over year, from 5.5% to 6.5% previously. It raised its gross margin projection to 10 basis points above last year, up from its previous projection of flat to slightly up.
It now expects adjusted earnings of $1.46 to $1.50 per share, including an approximate 4 cents per share headwind from a higher tax rate, up from $1.42 to $1.48 per share previously.
In the second quarter of 2025, Levi's reported adjusted earnings of 22 cents a share on nearly $1.45 billion in sales.
Last quarter, Levi's beat earnings projections and raised its full fiscal-year guidance for the year ending Nov. 29.
Levi's management will discuss second-quarter results at a conference call at 5 p.m. Eastern time on Wednesday.
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