LEVI STRAUSS & CO

Previous wording

We are an iconic American company with a rich history of profitable growth, quality, innovation and corporate citizenship. Our story began in San Francisco, California, in 1853 as a wholesale dry goods business. We created the first riveted blue jean 20 years later. Today we design, market and sell products that include jeans, casual and dress pants, activewear, tops, shorts, skirts, dresses, jackets and related accessories for men, women and children around the world under our Levi’s®, Dockers®, Levi Strauss Signature™, Denizen® and Beyond Yoga®brands. We service our consumers through our global infrastructure which develops, sources and markets our products around the world. In the first quarter of 2024 we announced the strategic decision to discontinue the Denizen® brand with operations winding down during fiscal year 2024 and into 2025. The wind down of Denizen® brand operations was substantially complete at March 2, 2025. In the fourth quarter of 2024, we announced we were undertaking an evaluation of strategic alternatives to the global Dockers® business, including a sale or other strategic transactions. As discussed in the Project Fuel section in this Management’s Discussion and Analysis, the Dockers® business was held for sale at the end of the first quarter of 2025 and reported as discontinued operations in the consolidated statements of operations for all periods presented. The current year and prior year metrics below exclude the impact of Dockers®.

Current wording

We are an iconic American company with a rich history of profitable growth, quality, innovation and corporate citizenship. Our story began in San Francisco, California, in 1853 as a wholesale dry goods business. We created the first riveted blue jean 20 years later. Today we design, market and sell products that include jeans, casual and dress pants, activewear, tops, shorts, skirts, dresses, jackets and related accessories for men, women and children around the world under our Levi’s®, Dockers®, Levi Strauss Signature™, Denizen® and Beyond Yoga®brands. We service our consumers through our global infrastructure which develops, sources and markets our products around the world. In the first quarter of 2024 we announced the strategic decision to discontinue the Denizen® brand. The wind down of Denizen® brand operations was substantially complete as of March 2, 2025. In the second quarter of 2025 we entered into a definitive agreement to sell our Dockers® business.

Previous wording

We recognize wholesale revenue from sales of our products through third-party retailers such as department stores, specialty retailers, third-party e-commerce sites and franchise locations dedicated to our brands. We also sell our products directly to consumers (“DTC”) through a variety of formats, including our own company-operated mainline and outlet stores, company-operated e-commerce sites and select shop-in-shops that we operate within department stores and other third-party retail locations. As of March 2, 2025, our products were sold in approximately 50,000 retail locations in approximately 120 countries, including approximately 3,200 brand-dedicated stores and shop-in-shops. As of March 2, 2025, we had 1,169 company-operated stores located in 39 countries and approximately 510 company-operated shop-in-shops. The remainder of our brand-dedicated stores and shop-in-shops were operated by franchisees and other partners.

Current wording

We recognize wholesale revenue from sales of our products through third-party retailers such as department stores, specialty retailers, third-party e-commerce sites and franchise locations dedicated to our brands. We also sell our products directly to consumers (“DTC”) through a variety of formats, including our own company-operated mainline and outlet stores, company-operated e-commerce sites and select shop-in-shops that we operate within department stores and other third-party retail locations. As of June 1, 2025, our products were sold in approximately 50,000 retail locations in approximately 120 countries, including approximately 3,200 brand-dedicated stores and shop-in-shops. As of June 1, 2025, we had 1,183 company-operated stores located in 39 countries and approximately 510 company-operated shop-in-shops. The remainder of our brand-dedicated stores and shop-in-shops were operated by franchisees and other partners.

Previous wording

Across all of our brands, pants – including jeans, casual pants, dress pants, shorts, skirts and activewear – represented 69% and 66% of our total units sold in the first three months of 2025 and 2024, respectively. Tops – including shirts, sweaters, jackets, dresses and jumpsuits – represented 28% and 27% of our total units sold in the first three months of 2025 and 2024, respectively. The remainder of our products are footwear and accessories. Men’s products generated 61% and 62% of our net revenues in the first three months of 2025 and 2024, respectively. Women’s products generated 38% and 37% of our net revenues in the first three months of 2025 and 2024, respectively. The remainder of our products are non-gendered. Products other than denim bottoms – which include tops, footwear and accessories and pants excluding jeans – represented 35% of our net revenues in the first three months of both 2025 and 2024.

Current wording

Across all of our brands, pants – including jeans, casual pants, dress pants, shorts, skirts and activewear – represented 68% and 66% of our total units sold in the first six months of 2025 and 2024, respectively. Tops – including shirts, sweaters, jackets, dresses and jumpsuits – represented 29% and 28% of our total units sold in the first six months of 2025 and 2024, respectively. The remainder of our products are accessories. Men’s products generated 60% and 61% of our net revenues in the first six months of 2025 and 2024, respectively. Women’s products generated 39% and 38% of our net revenues in the first six months of 2025 and 2024, respectively. The remainder of our products are non-gendered. Products other than denim bottoms – which include tops, accessories and pants excluding jeans – represented 38% and 37% of our net revenues in the first six months of 2025 and 2024, respectively.

Previous wording

Our Europe and Asia businesses, collectively, contributed 46% and 48% of our net revenues in the first three months of 2025 and 2024, respectively. Net revenues from our international business, which includes our Europe and Asia segments, as well as Canada and Latin America from our Americas segment, represented 57% and 59% of our net revenues in the first three months of 2025 and 2024, respectively. Sales of Levi’s® brand products represented approximately 94% of our net revenues in the first three months of both 2025 and 2024.

Current wording

Our Europe and Asia businesses, collectively, contributed 46% and 47% of our net revenues in the first six months of 2025 and 2024, respectively. Net revenues from our international business, which includes our Europe and Asia segments, as well as Canada and Latin America from our Americas segment, represented 57% and 58% of our net revenues in the first six months of 2025 and 2024, respectively. Sales of Levi’s® brand products represented approximately 94% and 93% of our net revenues in the first six months of 2025 and 2024, respectively.

Previous wording

Our wholesale channel generated 48% and 51% of our net revenues in the first three months of 2025 and 2024, respectively. Sales to franchise partners, included as a component of our wholesale channel, generated 7% of our net revenues in the first three months of both 2025 and 2024. Our DTC channel generated 52% and 49% of our net revenues in the first three months of 2025 and 2024, respectively, with our company operated e-commerce business representing 24% and 23% of DTC channel net revenues in the first three months of 2025 and 2024, respectively, and 12% and 11% of total net revenues in the first three months of 2025 and 2024, respectively.

Current wording

Our wholesale channel generated 49% and 52% of our net revenues in the first six months of 2025 and 2024, respectively. Sales to franchise partners, included as a component of our wholesale channel, generated 6% and 7% of our net revenues in the first six months of 2025 and 2024, respectively. Our DTC channel generated 51% and 48% of our net revenues in the first six months of 2025 and 2024, respectively, with our company operated e-commerce business representing 23% and 22% of DTC channel net revenues in the first six months of 2025 and 2024, respectively, and 12% and 11% of total net revenues in the first six months of 2025 and 2024, respectively.

Previous wording

In the fourth quarter of 2024, the Company announced it initiated a formal review of strategic alternatives for the Dockers® brand, which could include a potential sale or other strategic transaction. The Company retained Bank of America as its financial advisor. During the first quarter of 2025, the Company commenced a sale process of its Dockers® business with the target of completing a transaction in fiscal year 2025. At the end of the first quarter of 2025, the Dockers® business was held for sale and reported as discontinued operations in the consolidated statements of operations for all periods presented.

Current wording

In the fourth quarter of 2024, the Company announced it had initiated a formal review of strategic alternatives for the Dockers® brand, which could include a potential sale or other strategic transaction. During the second quarter of 2025 the Company entered into a definitive agreement to sell its Dockers® business. The transaction is subject to customary closing conditions and is expected to close on or around July 31, 2025 for the Dockers® intellectual property and operations in the U.S. and Canada, and on or around January 31, 2026, for the remaining Dockers® operations. The Dockers® business was reported as discontinued operations in the consolidated statements of income for all periods prese nted. The current year and prior year metrics included in this Management’s Discussion and Analysis exclude the impact of Dockers®.

Previous wording

The Company is changing its distribution strategy from an owned and operated model to a mix of owned and third-party operated distribution centers, which has resulted and will continue to result in the sale, lease or transfer of certain distribution centers currently owned and operated by the Company to third-party logistics providers. We incurred additional restructuring charges of $6.7 million and restructuring related charges of $3.1 million in the first quarter of 2025, which were included in “Restructuring charges, net” and “Selling, general and administrative expenses” (“SG&A”), respectively, in the consolidated statements of operations and we may incur additional significant restructuring and restructuring related charges as we progress our global productivity initiative, which could be material in a future fiscal quarter or year.

Current wording

In the first quarter of 2024, our Board of Directors (the "Board") approved a multi-year global productivity initiative, “Project Fuel”, designed to accelerate the execution of our Brand Led and DTC First strategies while fueling long-term profitable growth. This is a two-year initiative that began in 2024, with a focus on optimizing our operating model and structure, redesigning business processes and identifying opportunities to reduce costs and simplify processes across our organization. The Company is changing its distribution strategy from an owned and operated model to a mix of owned and third-party operated distribution centers, which has resulted and will continue to result in the sale, lease, exit or transfer of certain distribution centers currently owned and operated by the Company to third-party logistics providers. The first phase of the global productivity initiative was completed primarily in the first half of 2024. In connection with the initiative, we incurred restructuring charges of $6.8 million and restructuring related charges of $4.4 million in the first six months of 2025, which were included in “Restructuring charges, net” and “Selling, general and administrative expenses” (“SG&A”), respectively, in the consolidated statements of income. We may incur additional significant restructuring and restructuring related charges as we progress our global productivity initiative, which could be material in a future fiscal quarter or year.

Previous wording

•Inflation and other macroeconomic pressures in the U.S. and the global economy such as energy prices, potential new tariffs and recession fears are creating a complex and challenging retail environment for us and our customers as consumers reduce discretionary spending. A decline in consumer spending has had and may continue to have an adverse effect on our revenues, operating margins and net income (loss). These trends historically have impacted and may impact our future financial results, affecting revenue, operating margins and net income (loss).

Current wording

•Macroeconomic pressures in the U.S. and the global economy such as changes in tariff regimes, inflation and recession fears are creating a complex and challenging retail environment for us and our customers as consumers may reduce discretionary spending. A decline in consumer spending has had and may continue to have an adverse effect on our revenues, margins and net income. These trends historically have impacted and may impact our future financial results, affecting revenue, margins and net income.

Previous wording

•The diversification of our business model across geographies, channels, brands, and categories affects our gross margin. For example, if our sales in higher gross margin geographies, channels, brands and categories grow at a faster rate than in our lower gross margin geographies, channels, brands and categories, we would expect a favorable impact to aggregate gross margin over time. Gross margin in our Europe segment is generally higher than in our Americas and Asia segments. DTC sales generally have higher gross margins than sales through third parties, although DTC sales also typically have higher selling expenses and could have lower profitability. As we continue to execute on our strategic framework to be DTC First, we expect to see greater impact on our margins. Enhancements to our existing product offerings, or our expansion into new brands and products categories, may also impact our future gross margin.

Current wording

•As we continue to execute on our strategic framework to be DTC First, we expect to see greater impact on our margins, as the diversification of our business model across channels, geographies, brands, and categories affects our gross margin. For example, if our sales in higher gross margin channels, geographies, brands and categories grow at a faster rate than in our lower gross margin channels, geographies, brands and categories, we would expect a favorable impact to aggregate gross margin over time. Gross margin in our Europe segment is generally higher than in our Americas and Asia segments. DTC sales generally have higher gross margins than sales through third parties, although DTC sales also typically have higher selling expenses and could have lower profitability. Enhancements to our existing product offerings, or our expansion into new brands and products categories, may also impact our future gross margin.

Previous wording

•Foreign currencies continue to be volatile, with the volatility increasing due to the imposition of and changing policies around tariffs. Significant fluctuations of the U.S. Dollar against various foreign currencies, including the Euro and Mexican Peso, has in the past and may in the future negatively impact our financial results, revenue, operating margins and net income (loss).

Current wording

•Foreign currencies continue to be volatile, with the volatility increasing due to the imposition of and changing tariff regimes. Significant fluctuations of the U.S. Dollar against various foreign currencies, including the Euro and Mexican Peso, has in the past and may in the future negatively impact our financial results, revenue, operating margins and net income.

Previous wording

•The Organization for Economic Cooperation and Development reached agreement among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as Pillar Two. Many countries continue to announce changes in their tax laws and regulations based on the Pillar Two framework. While we continue to evaluate the impact of these legislative changes as additional guidance becomes available, uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. These legislative changes are not expected to have a material impact in fiscal year 2025 but could have an adverse impact on our effective tax rate, tax liabilities, and cash tax in future years.

Current wording

•Tax legislation continues to evolve globally with new laws and regulations that create uncertainty in the global economy. The Organization for Economic Cooperation and Development reached agreement among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as Pillar Two. Many countries continue to announce changes in their tax laws and regulations based on the Pillar Two framework. Additionally, U.S Congress enacted the One Big Beautiful Bill Act (“OBBBA”) which includes significant provisions, including tax cut extensions and modifications to the international tax framework. While we continue to evaluate the impact of these legislative changes as additional guidance becomes available, uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. These legislative changes could have an adverse impact on our future effective tax rate, tax liabilities, and cash tax.

Previous wording

•There has been increased focus from our stakeholders, including consumers, employees, investors, regulatory organizations and legislatures on corporate environmental, social, and governance (“ESG”) practices, including corporate practices related to the causes and impacts of climate change and corporate statements, practices or products related to a variety of social issues. We expect that stakeholder expectations and actions with respect to ESG practices and social issues and regulatory requirements will continue to evolve rapidly, which may impact our reputation and financial results.

Current wording

•There has been increased focus from our stakeholders, including consumers, employees, investors, regulatory organizations and legislatures on corporate environmental, social, and governance (“ESG”) practices, including corporate practices related to the causes and impacts of climate change and corporate statements, practices or products related to a variety of social issues. We expect that stakeholder expectations and actions with respect to

Previous wording

•Net revenues. Consolidated net revenues increased 3.1% on a reported basis and 8.6% on an organic net revenues basis compared to the first quarter of 2024 reflecting net revenue growth across the Americas and Asia regions and in our DTC channel. Organic net revenues excludes the impact on net revenues of the footwear and Denizen®divestitures from the first quarter of 2024.

Current wording

•Net revenues. Consolidated net revenues increased 6.4% on a reported basis and 8.8% on an organic net revenues basis compared to the second quarter of 2024 reflecting net revenue growth across the Americas and Europe regions and in both DTC and wholesale channels. Organic net revenues excludes the impact on net revenues of the footwear and Denizen®divestitures from the second quarter of 2024.

Previous wording

•Net income (loss) from continuing operations. We recognized consolidated net income from continuing operations of $140.2 million, compared to a net loss from continuing operations of $9.8 million in the first quarter of 2024. The increase was primarily due to lower restructuring charges and corporate expenses in connection with Project Fuel and an increase in gross profit driven by higher revenues and gross margins. Operating margin was 12.5%, up from 0.04% in the first quarter of 2024.

Current wording

•Net income from continuing operations. We recognized consolidated net income from continuing operations of $79.6 million, compared to net income from continuing operations of $17.2 million in the second quarter of 2024. The increase was primarily driven by higher gross profit. Operating margin was 7.5%, up from 1.5% in the second quarter of 2024.

Previous wording

•Adjusted EBIT. Compared to the first quarter of 2024, Adjusted EBIT increased 47.2% to $204.0 million from $138.6 million. The increase is due to higher gross profit described above and lower Adjusted SG&A expenses as a percentage of net revenues. As a result, Adjusted EBIT margin was 13.4%, 400 basis points higher than the first quarter of 2024 on a reported basis, and 440 basis points higher on a constant-currency basis.

Current wording

•Adjusted EBIT. Compared to the second quarter of 2024, Adjusted EBIT increased 38.7% to $119.3 million from $86.0 million. The increase is due to higher gross profit and lower Adjusted SG&A as a percentage of net revenues. As a result, Adjusted EBIT margin was 8.3%, 190 basis points higher than the second quarter of 2024 on a reported basis, and 200 basis points higher on a constant-currency basis.

Previous wording

•Adjusted net income. Compared to the first quarter of 2024, Adjusted net income increased to $150.0 million from $100.4 million. The increase is due to higher Adjusted EBIT as described above.

Current wording

•Adjusted net income. Compared to the second quarter of 2024, Adjusted net income increased to $88.5 million from $65.4 million. The increase is due to higher Adjusted EBIT as described above.

Previous wording

•Adjusted diluted earnings per share. Compared to the first quarter of 2024, Adjusted diluted earnings per share increased to $0.38 from $0.25, mainly due to the higher Adjusted net income described above. Currency translation did not have a significant impact on Adjusted diluted earnings per share.

Current wording

•Adjusted diluted earnings per share. Compared to the second quarter of 2024, Adjusted diluted earnings per share increased to $0.22 from $0.16, mainly due to the higher Adjusted net income described above. Currency translation did not have a significant impact on Adjusted diluted earnings per share.

Previous wording

For more information on Organic net revenues, Adjusted SG&A, Adjusted EBIT, Adjusted net income and Adjusted diluted earnings per share, measures not prepared in accordance with GAAP, and reconciliations of such measures to net income (loss) from continuing operations and diluted earnings (loss) per share from continuing operations, see “Non-GAAP Financial Measures.”

Current wording

For more information on Organic net revenues, Adjusted SG&A, Adjusted EBIT, Adjusted net income and Adjusted diluted earnings per share, measures not prepared in accordance with GAAP, and reconciliations of such measures to net income from continuing operations and diluted earnings per share from continuing operations, see “Non-GAAP Financial Measures.”

Previous wording

Discontinued operations. At the end of the first quarter of 2025 the Dockers® business was held for sale and reported as discontinued operations in the consolidated statements of operations for all periods presented.

Current wording

Discontinued operations. At the end of the first quarter of 2025 the Dockers® business was held for sale and reported as discontinued operations in the consolidated statements of income for all periods presented.

Previous wording

The following table summarizes, for the periods indicated, our consolidated statements of operations, the changes in these items from period to period and these items expressed as a percentage of net revenues:

Current wording

The following table summarizes, for the periods indicated, our consolidated statements of income, the changes in these items from period to period and these items expressed as a percentage of net revenues:

Previous wording

Total net revenues increased on both a reported and organic net revenues basis for the three-month period ended March 2, 2025, as compared to the same period in 2024. Currency translation affected net revenues unfavorably by approximately $46 million. The divestitures of the Denizen® business and footwear category impacted net revenues unfavorably by $11.9 million and $16.0 million, respectively.

Current wording

Total net revenues increased on both a reported and organic net revenues basis for the three-month and six-month periods ended June 1, 2025, as compared to the same periods in 2024. Currency translation affected net revenues unfavorably by approximately $8 million for the three-month period ended June 1, 2025 and by approximately $54 million for the six-month period ended June 1, 2025. The divestitures of the Denizen® business and footwear category impacted net revenues unfavorably by $10 million and $12 million, respectively, for the three-month period ended June 1, 2025 and by $22 million and $28 million, respectively, for the six-month period ended June 1, 2025.

Previous wording

Americas. Net revenues in the Americas increased for the three-month period ended March 2, 2025 on both reported and organic net revenues basis. Currency translation affected net revenues unfavorably by approximately $19 million for the three-month period ended March 2, 2025.

Current wording

Americas. Currency translation affected net revenues unfavorably by approximately $15 million for the three-month period ended June 1, 2025 and by approximately $34 million for the six-month period ended June 1, 2025. Net revenues in the Americas increased for the three-month and six-month periods ended June 1, 2025 on both reported and organic net revenues basis compared to the prior-year periods driven by growth in both DTC and wholesale channels.

Previous wording

Organic net revenues increased for the three-month period ended March 2, 2025, compared to the prior-year period, driven by growth in our DTC and wholesale channels. The increase in DTC revenue was attributable to growth across all markets, led by the U.S. and Latin America, driven by both store performance and store expansion. We benefited from 45 more company-operated stores in operation in the Americas as of March 2, 2025, as compared to February 25, 2024. E-commerce organic net revenues also increased, primarily due to higher online traffic and conversion. Wholesale revenue increased primarily due to higher volume in the U.S., including from door and category expansion. Additionally, Colombia, which we acquired at the start of the second quarter of 2024, contributed $14 million to this quarter’s net revenue growth.

Current wording

The increase in DTC revenues was attributable to growth across all markets, led by the U.S. and Latin America, driven by store performance due to higher traffic. E-commerce revenues increased, primarily due to higher online traffic and conversion. Wholesale revenues increased primarily due to higher volume in the U.S. and Latin America, including from door and category expansion. Additionally, Colombia, which we acquired at the start of the second quarter of 2024, contributed $15 million to net revenue growth for the six-month period ended June 1, 2025. Net revenues also benefited from higher average revenues per unit for the three-month period ended June 1, 2025.

Previous wording

Organic net revenues for the three-month period ended March 2, 2025, as compared to the prior-year quarter, increased from growth in both our DTC and wholesale channels across most markets including the impact of price increases in Turkey, India and South Africa. The growth in DTC revenue was due primarily to store expansion and strong performance in our company-operated stores as a result of increased volume driven by higher traffic. We benefited from 37 more company-operated stores in operation in Asia as of March 2, 2025 as compared to February 25, 2024. The increase in wholesale revenue was primarily due to an increase in units sold.

Current wording

Organic net revenues were flat for the three-month period ended June 1, 2025, compared to the prior-year quarter, as growth in our DTC channel was offset by a decrease in our wholesale channel. For the six-month period ended June 1, 2025, organic net revenues increased driven by growth in our DTC channel partially offset by a decrease in our wholesale channel. The increase in DTC revenues was primarily due to store expansion and strong performance in our company-operated stores as a result of increased volume driven by higher traffic. We benefited from 54 more company-operated stores in operation in Asia as of June 1, 2025 as compared to May 26, 2024. The decrease in wholesale revenue was primarily due to declines in India, China and Malaysia. DTC and wholesale revenues benefited from price increases in Turkey, India and South Africa.

Previous wording

Beyond Yoga®. Net revenues in Beyond Yoga® increased on a reported and organic net revenues basis for the three-month period ended March 2, 2025. Currency translation did not have an impact on net revenues. Organic net revenues grew across both our DTC and wholesale channels. The growth in our DTC channel was primarily due to growth in e-commerce.

Current wording

Beyond Yoga®. Net revenues in Beyond Yoga® increased on a reported and organic net revenues basis for the three-month and six-month periods ended June 1, 2025 compared to the prior year periods, primarily due to growth in e-commerce. Currency translation did not have an impact on net revenues.

Previous wording

Wholesale. On a reported basis, net revenues in our wholesale channel decreased for the three-month period ended March 2, 2025 compared with the prior-year period. On an organic net revenues basis, net revenues increased for the three-month period ended March 2, 2025. Currency translation affected net revenues unfavorably by approximately $24 million. The increase in organic net revenues was driven by higher volume, primarily in the Americas, partially offset by decreased shipping in connection with the transition to the distribution center in Dorsten, Germany.

Current wording

Wholesale. Currency translation affected net revenues unfavorably by approximately $9 million and $33 million for the three-month and six-month periods ended June 1, 2025, respectively. Net revenues in our wholesale channel increased for the three-month period ended June 1, 2025 compared with the prior-year periods on a reported and organic net revenues basis driven by higher volume in the Americas and Europe, partially offset by a decline in Asia. For the three-month period, higher volume in Europe was due primarily to normalization of shipping after the transition to the distribution center in Dorsten, Germany. Wholesale revenues increased on an organic net revenues basis for the six-month period ended June 1, 2025 due primarily to higher volumes, and were flat on a reported basis due to the decline in net revenues from the divestitures of the Denizen® business and footwear category.

Previous wording

DTC (Direct to Consumer). Net revenues in our DTC channel increased on both a reported and organic net revenues basis for the three-month period ended March 2, 2025, with currency translation affecting net revenues unfavorably by approximately $22 million. The increase was driven by store performance across mainline and outlet stores, as well as e-commerce. Our U.S. DTC business for the three-month period grew 8%. For the three-month period ended March 2, 2025 net revenues from e-commerce grew 13%, driven by growth across the Levi’s®brands. As a percentage of net revenues for the three-month period ended March 2, 2025, DTC comprised 52% of total net revenues.

Current wording

DTC (Direct to Consumer). Net revenues in our DTC channel increased on both a reported and organic net revenues basis for the three-month and six-month periods ended June 1, 2025, with currency translation affecting net revenues favorably by approximately $1 million and unfavorably by approximately $21 million, respectively. The increase was driven by store performance, as well as e-commerce. On an organic net revenues basis our DTC business grew 9% and 9% in the U.S., 9% and 10% in Europe, and 10% and 12% in Asia for the three-month and six-month periods ended June 1, 2025, respectively. For both the three-month and six-month periods ended June 1, 2025 net revenues from e-commerce grew 13%. As a percentage of net revenues for the three-month and six-month periods ended June 1, 2025, DTC comprised 50% and 51% of total net revenues, respectively.

Previous wording

Levi’s®. Net revenues for the Levi’s® brand increased on both a reported and organic net revenues basis, with currency translation affecting net revenues unfavorably by approximately $45 million. The increase was a result of higher revenue in our DTC channel, due to improved store performance and store expansion and higher e-commerce traffic, and an increase in wholesale revenues, primarily in in the Americas, due to higher volume.

Current wording

Levi’s®. Net revenues for the Levi’s® brand increased on both a reported and organic net revenues basis for the three-month and six-month periods ended June 1, 2025. Currency translation affected net revenues unfavorably by approximately $7 million and $53 million for the three-month and six-month periods ended June 1, 2025, respectively. The increase was a result of higher revenue in our DTC channel, due to improved store performance and store expansion and higher e-commerce traffic, and an increase in wholesale revenues, primarily in the Americas and Europe, due to higher volume.

Previous wording

Levi Strauss Signature™. Net revenues for the Levi Strauss Signature™ brand increased on both a reported and organic net revenues basis. Currency translation did not have a significant impact on net revenues. The increase is due to more units sold.

Current wording

Levi Strauss Signature™. Net revenues for the Levi Strauss Signature™ brand were flat on both a reported and organic net revenues basis for the three-month period ended June 1, 2025, and increased on both a reported and organic net revenues basis for the six-month period ended June 1, 2025 due to more units sold. Currency translation did not have a significant impact on net revenues for the three-month and six-month periods ended June 1, 2025.

Previous wording

Currency translation impacted gross profit unfavorably by approximately $27 million for the three-month period ended March 2, 2025.

Current wording

Currency translation did not have a significant impact on gross profit for the three-month period ended June 1, 2025 and impacted gross profit unfavorably by approximately $28 million for the six-month period ended June 1, 2025.

Previous wording

For the three-month period ended March 2, 2025, the increase in gross margin was primarily driven by lower product costs, favorable channel and brand mix, and higher full priced sales. Additionally, gross margin increased approximately 40 basis points as a result of currency exchange, including transaction impacts.

Current wording

For the three-month and six-month periods ended June 1, 2025, the increase in gross margin was primarily driven by lower product costs and favorable channel mix. Additionally, gross margin increased approximately 50 basis points as a result of currency exchange, including transaction impacts, for the three-month and six-month periods ended June 1, 2025 and benefited from higher full priced sales and less promotional activity.

Previous wording

Selling. Currency translation impacted selling expenses favorably by approximately $10 million for the three-month period ended March 2, 2025. Excluding the effects of currency, the increase in selling expenses for the three-month period ended March 2, 2025 was primarily due to DTC business expansion in the current year as compared to the prior-year period. This was offset by e-commerce related fulfillment costs that are now included as distribution expenses.

Current wording

Selling. Currency translation did not have a significant impact on selling expenses for the three-month period ended June 1, 2025 and had a favorable impact of approximately $10 million for the six-month period ended June 1, 2025. Excluding the effects of currency, selling expenses increased for the three-month and six-month periods ended June 1, 2025 while selling expenses as a percent of revenue decreased as compared to the prior-year periods. The leverage was primarily due to DTC business expansion in the current year as compared to the prior-year periods, partially offset by e-commerce related fulfillment costs that are now included as distribution expenses.

Previous wording

Distribution. Currency translation impacted distribution expenses favorably by approximately $2 million for the three-month period ended March 2, 2025. The increase in distribution expenses was primarily due to higher spend in support of both our DTC and wholesale businesses, including costs to transition to third-party distribution centers in Groveport, Ohio and Dorsten, Germany. E-commerce related fulfillment costs of $11.0 million, previously included in selling expenses, are now reflected in distribution expense.

Current wording

Distribution. Currency translation did not have a significant impact on distribution for the three-month period ended June 1, 2025 and had a favorable impact of approximately $2 million for the six-month period ended June 1, 2025. The increase in distribution expenses was primarily due to higher spend in support of both our DTC and wholesale businesses, including costs to transition to third-party distribution centers in Groveport, Ohio and Dorsten, Germany, including costs to run parallel distribution centers in the U.S. as we continue to implement our distribution strategy model to operate a mix of owned and third-party operated distribution centers. This is partially offset by lower costs from Company owned and operated distribution centers that we are winding down and exiting. Distribution expenses for the three-month and six-month periods ended June 1, 2025 included e-commerce related fulfillment costs of approximately $8.0 million and $19.0 million.

Previous wording

Other. Other expenses include functional administrative and organization costs, information resources, and marketing organization costs. Currency translation impacted other costs favorably by approximately $3 million for the three-month period ended March 2, 2025. The decrease in other costs for the three-month period ended March 2, 2025 was primarily due to a decrease in restructuring related charges which totaled $3.1 million, primarily consulting fees in connection with Project Fuel, as well as lower goodwill impairment charges which totaled $2.5 million. During the three-month period ended February 25, 2024, the Company recognized $10.1 million of restructuring related charges, primarily consulting fees, and $5.5 million in goodwill impairment charges related to our footwear business as a result of the decision to discontinue the category.

Current wording

Other. Other expenses include functional administrative and organization costs, information resources, and marketing organization costs. Currency translation did not have a significant impact on other expenses for the three-month period ended June 1, 2025 and had a favorable impact of approximately $3 million for the six-month period ended June 1, 2025. The decrease in other expenses for the six-month period ended June 1, 2025 was primarily due to a decrease in restructuring related charges, primarily consulting costs associated with our restructuring initiative, which totaled $7.7 million. During the six-month period ended May 26, 2024, the Company recognized restructuring related charges, primarily consulting costs associated with our restructuring initiative, of $25.4 million.

Previous wording

During the three-month period ended March 2, 2025, we recognized restructuring charges of $6.7 million, in connection with Project Fuel consisting primarily of severance, post-employment benefit charges, contract terminations and asset impairments. During the three-month period ended February 25, 2024, restructuring charges, net of $113.1 million in connection with Project Fuel consisting primarily of severance and other post-employment benefit charges.

Current wording

During the three-month and six-month periods ended June 1, 2025, we recognized restructuring charges of $6.8 million and $13.5 million, respectively, in connection with Project Fuel consisting primarily of severance and other post-employment benefit charges and asset impairments and contract terminations in connection with closures of distribution centers which were largely offset by a gain on sale of a previously closed distribution center. During the three-month and six-month periods ended May 26, 2024, we recognized restructuring charges, net of $55.1 million and $168.2 million, respectively, in connection with Project Fuel consisting primarily of severance and other post-employment benefit charges.

Previous wording

Currency translation impacted total operating income unfavorably by approximately $10 million for the three-month period ended March 2, 2025, respectively.

Current wording

Currency translation impacted total operating income unfavorably by approximately $5 million and $15 million for the three-month and six-month periods ended June 1, 2025, respectively.

Previous wording

•Americas. Currency translation had an unfavorable impact of approximately $3 million for the three-month period ended March 2, 2025. The increase in operating income for the three-month period ended March 2, 2025 was primarily due to higher revenues and higher gross margins as compared to the prior-year period. A decrease in SG&A as a percent of revenue also contributed to the increase in operating income in the three-month period ended March 2, 2025 compared to the prior-year period.

Current wording

•Americas. Currency translation had an unfavorable impact of approximately $3 million and $6 million for the three-month and six-month periods ended June 1, 2025, respectively. The increases in operating income for the three-month and six-month periods ended June 1, 2025 were due to higher revenues, higher gross margins and lower SG&A as a percent of revenue compared to the prior-year periods.

Previous wording

•Europe. Currency translation had an unfavorable impact of approximately $6 million for the three-month period ended March 2, 2025. Excluding the effects of currency, operating income increased for the three months ended March 2, 2025 compared with the prior year primarily due to higher gross margins partially offset by lower revenues and an increase in SG&A as a percent of revenue.

Current wording

•Europe. Currency translation did not have a significant impact and had an unfavorable impact of approximately $5 million for the three-month and six-month periods ended June 1, 2025, respectively. Excluding the effects of currency, operating income increased for the three-month period ended June 1, 2025 compared with the prior-year period primarily due to higher revenues and lower SG&A as a percent of revenue. Operating income increased during the six-month period ended June 1, 2025 compared with the prior-year period primarily due to higher revenues and gross margins, partially offset by higher SG&A.

Previous wording

Beyond Yoga® operating loss. Currency translation did not have an impact for the three-month period ended March 2, 2025. The increase in operating loss for the three-month period ended March 2, 2025 as compared to the prior-year period was primarily due to higher SG&A as a percent of revenue and lower gross margins, partially offset by higher revenue.

Current wording

Beyond Yoga® operating loss. Currency translation did not have an impact for the three-month and six-month periods ended June 1, 2025. The increases in operating losses for the three-month and six-month periods ended June 1, 2025 as compared to the prior-year periods were primarily due to higher SG&A, partially offset by higher revenue.

Previous wording

During the three-month period ended February 25, 2024, we recognized restructuring charges of $113.1 million, respectively, in connection with Project Fuel consisting primarily of severance and post-employment benefit charges.

Current wording

Restructuring charges, net. Currency translation did not have a significant impact for the three-month and six-month periods ended June 1, 2025. During the three-month and six-month periods ended June 1, 2025, we recognized restructuring charges of $6.8 million and $13.5 million, respectively, in connection with Project Fuel consisting primarily of severance and other post-employment benefit charges asset impairments and contract terminations in connection with closures of distribution centers which were partially offset by gain on sale of a previously closed distribution center. During the three-month and six-month periods ended May 26, 2024, we recognized restructuring charges of $55.1 million and $168.2 million, respectively, in connection with Project Fuel consisting primarily of severance and post-employment benefit charges.