Levi Strauss Boosts Profitability: Dodges Tariff Impact and Triples Earnings

Levi Strauss boosts its profitability. The U.S. denim giant, focused on a transformation plan led by Michelle Gass, closes 2025 with a 2.7% fold increase in net income. The company has managed to avoid the impact of tariffs thanks to price increases and a product strategy focused on the highest positioning.

The company ended 2025 (fiscal year ended last November) with a net operating income of $578 million, compared to $211 million in the previous year.

Gross profit, meanwhile, rose by 5.6% over the year as a whole, to $3,877 million, while operating income went from red to black: whereas in 2024 it posted a negative $3.3 million, in 2025 it was $5 million positive. The company’s gross margin for the year as a whole stood at 61.7%, 110 basis points higher than in 2024.

Levi Strauss ended fiscal 2025 with net operating income of $578 million, up from $211 million in the previous year

“Over the past several years, we have taken steps to become a DTC-focused company,“ said Michelle Gass, president and CEO of Levi Strauss. “As a result, we have elevated the Levi’s brand and generated higher and faster-growing profitability, as reflected in our fourth quarter and full 2025 results,“ she said.

The company, which has focused on products with higher positioning and profitability (completing, for example, the sale of Dockers), warned of a drop in sales in the United States in the fourth quarter of the year, as a result of inflation and economic uncertainty. In Europe and Asia, meanwhile, sales rose 8% and 2%, respectively.