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. 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. On July 31, 2025 the Company sold the Dockers® intellectual property and operations in the U.S. and Canada. The sale of the remaining Dockers® operations is expected to close on or around January 31, 2026.

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®, Levi Strauss Signature™ and Beyond Yoga®brands. We service our consumers through our global infrastructure which develops, sources and markets our products around the world.

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 August 31, 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 August 31, 2025, we had 1,201 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 March 1, 2026, our products were sold in approximately 50,000 retail locations in approximately 120 countries, including approximately 3,300 brand-dedicated stores and shop-in-shops. As of March 1, 2026, we had 1,232 company-operated stores located in 38 countries and approximately 520 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 67% and 65% of our total units sold in the first nine months of 2025 and 2024, respectively. Tops – including shirts, sweaters, jackets, dresses and jumpsuits – represented 29% of our total units sold in the first nine months of both 2025 and 2024. The remainder of our products are accessories. Men’s products generated 60% and 61% of our net revenues in the first nine months of 2025 and 2024, respectively. Women’s products generated 39% and 38% of our net revenues in the first nine 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 nine months of 2025 and 2024, respectively.

Current wording

Across all of our brands, pants – including jeans, casual pants, dress pants, shorts, skirts and activewear – represented 67% and 69% of our total units sold in the first three months of 2026 and 2025, respectively. Tops – including shirts, sweaters, jackets, dresses and jumpsuits – represented 29% and 28% of our total units sold in the first three months of 2026 and 2025, respectively. The remainder of our products are accessories. Men’s products generated 59% and 61% of our net revenues in the first three months of 2026 and 2025, respectively. Women’s products generated 40% and 38% of our net revenues in the first three months of 2026 and 2025, respectively. The remainder of our products are non-gendered. Products other than denim bottoms – which include tops, accessories and pants excluding jeans – represented 37% and 35% of our net revenues in the first three months of 2026 and 2025, respectively.

Previous wording

Our Europe and Asia businesses, collectively, contributed 46% of our net revenues in the first nine months of both 2025 and 2024. 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 58% of our net revenues in the first nine months of both 2025 and 2024. Sales of Levi’s® brand products represented approximately 94% of our net revenues in the first nine months of both 2025 and 2024.

Current wording

Our Europe and Asia businesses, collectively, contributed 48% and 46% of our net revenues in the first three months of 2026 and 2025, 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 61% and 57% of our net revenues in the first three months of 2026 and 2025, respectively. Sales of Levi’s® brand products represented approximately 94% of our net revenues in the first three months of both 2026 and 2025.

Previous wording

Our wholesale channel generated 51% and 53% of our net revenues in the first nine 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 nine months of both 2025 and 2024. Our DTC channel generated 49% and 47% of our net revenues in the first nine months of 2025 and 2024, respectively, with our company operated e-commerce business representing 22% and 21% of DTC channel net revenues in the first nine months of 2025 and 2024, respectively, and 11% and 10% of total net revenues in the first nine months of 2025 and 2024, respectively.

Current wording

Our wholesale channel generated 48% of our net revenues in the first three months of both 2026 and 2025. 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 2026 and 2025. Our DTC channel generated 52% of our net revenues in the first three months of both 2026 and 2025 with our company operated e-commerce business representing 25% and 24% of DTC channel net revenues in the first three months of 2026 and 2025, respectively, and 13% and 12% of total net revenues in the first three months of 2026 and 2025, respectively.

Previous 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, subject to customary closing conditions. On July 31, 2025 the Company sold the Dockers® intellectual property and operations in the U.S. and Canada. The sale of the remaining Dockers® operations is expected to close on or around January 31, 2026. 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®.

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, subject to customary closing conditions. On July 31, 2025 the Company sold the Dockers® intellectual property and operations in the U.S. and Canada. The Company sold the remaining Dockers® operations in multiple closings during the first quarter of 2026, with the final closing on February 27, 2026. 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

•Additional tariffs recently imposed on products imported into the U.S. from most jurisdictions, along with retaliatory actions by other countries, have created an uncertain environment for global trade. In addition, many of our products are produced in countries, such as Bangladesh, Pakistan, Cambodia and Vietnam, which have been the subject of new U.S. reciprocal tariffs, and there may be additional or increased incremental tariff actions in the future. As a result of the new tariffs, expected additional tariffs, retaliatory actions taken by other countries in response, and continuing uncertainty as to the status of such tariffs, the cost of our inventory in the U.S. has increased and may increase further in the future. These increased costs could lead to a significant increase in cost of sales and a significant reduction in gross margin and income from operations. We are monitoring the changing tariff and trade restrictions, assessing the impact on our business and taking steps to mitigate their impact, which include supplier negotiations, cost reductions, changing the timing of receiving inventory and selective price increases. However, the duration, magnitude and scope of any additional tariffs, trade restrictions, retaliatory or other measures are difficult to predict, including related unfavorable impacts to consumer demand, along with the extent (if any) to which we will be able to offset the impacts of such actions through our mitigation efforts. These tariff actions, retaliatory measures, or other trade restrictions, could materially and adversely affect our business.

Current wording

•Reciprocal tariffs previously imposed on products imported into the U.S. from most jurisdictions, along with retaliatory actions by other countries, have created an uncertain environment for global trade. On February 20, 2026 a U.S. Supreme Court ruling invalidated the tariffs imposed by the U.S. government under the International Emergency Economic Powers Act (“IEEPA”) on products imported into the U.S., which introduced the potential for such previously collected tariffs to be refunded by the U.S. government. Through the first quarter of 2026, the Company paid approximately $80 million of these tariffs. The U.S. government subsequently imposed new tariffs under a separate authority prospectively in response to the ruling, all of which have created additional tariff uncertainty. Many of our products are produced in countries, such as Bangladesh, Cambodia, Pakistan, and Vietnam, that were subject to the recently invalidated U.S. IEEPA tariffs, and are subject to new prospective tariffs. There may be additional tariff actions or increases to existing tariffs in the future in response to the recently invalidated tariffs. As a result of these tariff actions, retaliatory actions taken by other countries in response, and ongoing uncertainty regarding U.S. trade policy, the cost of our inventory in the U.S. has increased and may increase further in the future. These increased costs could lead to a significant increase in cost of sales and a significant reduction in gross margin and income from operations. We are monitoring the changing tariffs and trade restrictions, assessing the impact on our business and taking steps to mitigate their impact. However, the duration, magnitude and scope of any additional tariffs, trade restrictions, and retaliatory or other measures are difficult to predict, including related unfavorable impacts to consumer demand, along with the extent (if any) to which we will be able to offset the impacts of such actions through our mitigation efforts. These tariff actions, retaliatory measures, or other trade restrictions could materially and adversely affect our business.

Previous wording

•As part of our effort to optimize our logistics network, we are in the process of transitioning the operation of certain of our global distribution and fulfillment centers to third-party logistics providers. This transition from owner-operated facilities to third-party logistics providers has and may continue to cause interruptions to these centers as we transition or restructure systems, technology and employees. We have and may continue to experience shipping delays, order cancellations and increased costs as a result of this transition. Given that, we are subject to concentration risks and any disruptions, delays or other events impacting the business of the third-party logistics providers may have a significant impact on our business, including our ability to timely fulfill orders. If we continue to encounter problems with our distribution system, our ability to meet customer and consumer expectations, manage inventory, complete sales and achieve operating efficiencies may be adversely affected.

Current wording

•As part of our effort to optimize our logistics network, we are in the process of transitioning and stabilizing the operation of certain of our global distribution and fulfillment centers to third-party logistics providers. This transition from owner-operated facilities to third-party logistics providers has and may continue to cause interruptions to these centers as we transition or restructure systems, technology and employees. We have and may continue to experience shipping delays, order cancellations and increased costs as a result of this transition and stabilization. We are subject to concentration risks and any disruptions, delays or other events impacting the business of the third-party logistics providers may have a significant impact on our business, including our ability to timely fulfill orders. If we continue to encounter problems with our distribution system, our ability to meet customer and consumer expectations, manage inventory, complete sales and achieve operating efficiencies may be adversely affected.

Previous 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.

Current wording

•Macroeconomic pressures in the U.S. and the global economy such as changes in tariff regimes, inflation, energy prices and recession fears are creating a complex and challenging retail environment for us and our customers as consumers may reduce discretionary spending. These trends historically have impacted and may impact our future financial results, affecting revenue, margins and net income.

Previous 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.

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. Gross margin on tops is generally lower than our bottoms category. Enhancements to our existing product offerings, or our expansion into new brands and products categories, may also impact our future gross margin.

Previous wording

•The current domestic and international political environment, including volatile trade relations and military and civil conflicts, have resulted in uncertainty surrounding the future state of the global economy. There is greater uncertainty with respect to potential changes in trade regulations, tariffs, sanctions and export controls which also increase volatility in the global economy. This environment has affected and may continue to affect production and distribution lead times, increasing our costs and potentially affecting our ability to meet customer demand. If these disruptions persist, they may require us to modify our current sourcing practices, which may impact our product costs, and, if not mitigated, could have a material adverse effect on our business and results of operations.

Current wording

•The current domestic and international political environment, including volatile trade relations and military and civil conflicts, and most recently heightened military action in the Middle East, have resulted in uncertainty surrounding the future state of the global economy. There is greater uncertainty with respect to potential changes in trade regulations, tariffs, sanctions and export controls which also increase volatility in the global economy. This environment has affected and may continue to affect consumer sentiment and demand and production and distribution lead times, increasing our costs and potentially affecting our ability to meet customer demand. If these disruptions persist, they may require us to modify our current sourcing and logistics practices, which may impact our product costs, and, if not mitigated, could have a material adverse effect on our business and results of operations.

Previous 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.

Current wording

•Foreign currencies continue to be volatile, with the volatility increasing due to the imposition of tariffs and evolving trade policies. Significant fluctuations of the U.S. Dollar against various foreign currencies, including the Euro, Mexican peso and Australian dollar, has in the past and may in the future adversely impact our financial results, revenue, operating margins and net income.

Previous 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. Although we expect the OBBBA to have immaterial impacts to our financial results, we will continue monitoring its impacts.

Current wording

•Tax legislation continues to evolve globally with new laws and regulations that create uncertainty and may adversely affect our financial results. 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. The Company does not expect the impact of Pillar Two will be significant to our financial results in the short term. Additionally, U.S Congress enacted the One Big Beautiful Bill Act (“OBBBA”) which includes significant provisions, including extension of the Tax Cuts and Jobs Act and modifications to the international tax framework. We do not expect the OBBBA to have a material impact to our financial results and we will continue to monitor its impacts as the legislative landscape evolves.

Previous wording

For additional information regarding these risks, as well as other risks we face, see the risk factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 1, 2024.

Current wording

For additional information regarding these risks, as well as other risks we face, see the risk factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended November 30, 2025 (“2025 Annual Report on Form 10-K”).

Previous wording

We typically achieve our largest quarterly revenues in the fourth quarter. In fiscal year 2024, our net revenues in the first, second, third and fourth quarters represented 24%, 23%, 24% and 29%, respectively, of our total net revenues for the year.

Current wording

We typically achieve our largest quarterly revenues in the fourth quarter. In fiscal year 2025, our net revenues in the first, second, third and fourth quarters represented 24%, 23%, 25%, 28%, respectively, of our total net revenues for the year.

Previous wording

•Net revenues. Consolidated net revenues increased 7.0% on a reported basis and 6.9% on an organic net revenues basis compared to the third quarter of 2024 reflecting net revenue growth across all 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 third quarter of 2024.

Current wording

•Net revenues. Consolidated net revenues increased 14.1% on a reported basis and 9.2% on an organic net revenues basis compared to the first quarter of 2025 reflecting net revenue growth across all regions and in both DTC and wholesale channels.

Previous wording

•Net income from continuing operations. We recognized consolidated net income from continuing operations of $122.0 million, compared to $22.7 million in the third quarter of 2024. The increase was primarily driven by Beyond Yoga® goodwill and intangible impairment charges recorded in thethird quarter of 2024 as well as higher gross profit. These increases were partially offset by higher income taxes in the current year. Operating margin was 10.8%, up from 2.3% in the third quarter of 2024.

Current wording

•Net income from continuing operations. We recognized consolidated net income from continuing operations of $177.1 million, compared to $140.2 million in the first quarter of 2025. The increase was primarily driven by higher net revenues and a legal settlement gain, partially offset by higher selling, general and administrative expenses (“SG&A”). Net income margin from continuing operations was 10.2%, up from 9.2% in the first quarter of 2025. Operating margin was 11.4%, down from 12.5% in the first quarter of 2025.

Previous wording

•Adjusted EBIT. Compared to the third quarter of 2024, Adjusted EBIT increased 2.5% to $182.3 million from $177.8 million. The increase is due to higher gross profit partially offset by higher Adjusted SG&A. As a result, Adjusted EBIT margin was 11.8%, 50 basis points lower than the third quarter of 2024 on a reported basis, and 70 basis points lower on a constant-currency basis.

Current wording

•Adjusted EBIT. Compared to the first quarter of 2025, Adjusted EBIT increased 6.8% to $217.8 million from $204.0 million primarily driven by higher net revenues, partially offset by the impact of tariffs and higher advertising and promotion expense. Adjusted EBIT margin was 12.5%, 90 basis points lower than the first quarter of 2025 on a reported basis, and 140 basis points lower on a constant-currency basis.

Previous wording

•Adjusted net income. Compared to the first nine months of 2024, Adjusted net income increased 24.9% to $374.2 million from $299.5 million, primarily due to higher Adjusted EBIT described above, partially offset by higher income taxes in the current year.

Current wording

•Adjusted net income. Compared to the first quarter of 2025, Adjusted net income increased to $166.7 million from $150.0 million due to higher Adjusted EBIT described above.

Previous wording

•Diluted earnings per share from continuing operations. We recognized diluted earnings per share from continuing operations of $0.31, compared to $0.06 in the third quarter of 2024, mainly due to the higher Net income from continuing operations described above.

Current wording

•Diluted earnings per share from continuing operations. We recognized diluted earnings per share from continuing operations of $0.45, compared to $0.35 in the first quarter of 2025 mainly due to the higher Net income from continuing operations described above.

Previous wording

•Adjusted diluted earnings per share. Compared to the third quarter of 2024, Adjusted diluted earnings per share increased to $0.34 from $0.33, mainly due to the higher Adjusted net income described above. Currency translation favorably affected Adjusted diluted earnings per share by $0.01.

Current wording

•Adjusted diluted earnings per share. Compared to the first quarter of 2025, Adjusted diluted earnings per share increased to $0.42 from $0.38, mainly due to the higher Adjusted net income described above. Currency translation favorably affected Adjusted diluted earnings per share by $0.01.

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 from continuing operations and diluted earnings per share from continuing operations, see “Non-GAAP Financial Measures.”

Current wording

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

Previous wording

Fiscal year. We use a 52- or 53- week fiscal year, with each fiscal year ending on the Sunday that is closest to November 30 of that year. Certain of our foreign subsidiaries have fiscal years ending November 30. Each fiscal year generally consists of four 13-week quarters, with each quarter ending on the Sunday that is closest to the last day of the last month of that quarter. Fiscal year 2025 is a 52-week year, ending on November 30, 2025 and fiscal year 2024 was a 53-week year, ending on December 1, 2024. Each quarter of fiscal years 2025 and 2024 consists of 13 weeks, with the exception of the fourth quarter of 2024, which consisted of 14 weeks.

Current wording

Fiscal year. We use a 52- or 53- week fiscal year, with each fiscal year ending on the Sunday that is closest to November 30 of that year. Certain of our foreign subsidiaries have fiscal years ending November 30. Each fiscal year generally consists of four 13-week quarters, with each quarter ending on the Sunday that is closest to the last day of the last month of that quarter. Fiscal year 2026 is a 52-week year, ending on November 29, 2026 and fiscal year 2025 was a 52-week year, ending on November 30, 2025. Each quarter of fiscal years 2026 and 2025 consists of 13 weeks.

Previous wording

Segments. Our Levi’s Brands business, which includes Levi’s®, Levi Strauss Signature™ and Denizen® brands, is defined by geographical regions into three segments: Americas, Europe and Asia. Our Beyond Yoga® business is managed separately.

Current wording

Segments. Our Levi’s Brands business, which includes Levi’s® and Levi Strauss Signature™ brands, is defined by geographical regions into three segments: Americas, Europe and Asia. Our Beyond Yoga® business, which is managed separately, does not meet the quantitative thresholds for reportable segments but is presented separately to increase transparency of our performance.

Previous wording

Total net revenues increased on both a reported and organic net revenues basis for the three-month and nine-month periods ended August 31, 2025, as compared to the same periods in 2024. Currency translation had a favorable impact on total net revenues of approximately $27 million for the three-month period ended August 31, 2025 and an unfavorable impact of approximately $27 million for the nine-month period ended August 31, 2025. The divestitures of the Denizen® business and footwear category impacted net revenues unfavorably by $3 million and $22 million, respectively, for the three-month period ended August 31, 2025 and by $25 million and $50 million, respectively, for the nine-month period ended August 31, 2025.

Current wording

Total net revenues increased on both a reported and organic net revenues basis for the three-month period ended March 1, 2026, as compared to the same period in 2025. Currency translation had a favorable impact on total net revenues of approximately $71 million for the three months ended March 1, 2026.

Previous wording

Americas. Currency translation had an unfavorable impact on net revenues of approximately $2 million and approximately $36 million for the three-month and nine-month periods ended August 31, 2025, respectively. Net revenues in the Americas increased for the three-month and nine-month periods ended August 31, 2025 on both reported and organic net revenues basis compared to the prior-year periods driven by growth in both DTC and wholesale channels.

Current wording

Americas. Currency translation had a favorable impact on net revenues of approximately $18 million for the three months ended March 1, 2026. Net revenues in the Americas increased for the three-month period ended March 1, 2026 on both a reported and organic net revenues basis compared to the prior-year period driven by growth in both DTC and wholesale channels.

Previous wording

Europe. Currency translation had a favorable impact on net revenues of approximately $29 million and approximately $20 million for the three-month and nine-month periods ended August 31, 2025, respectively. Net revenues in Europe increased for the three-month and nine-month periods ended August 31, 2025 on both a reported and organic net revenues basis compared to the prior-year periods, reflecting growth in our DTC channel as well as growth in our wholesale channel on an organic basis.

Current wording

Europe. Currency translation had a favorable impact on net revenues of approximately $51 million for the three months ended March 1, 2026. Net revenues in Europe increased for the three-month period ended March 1, 2026 on both a reported and organic net revenues basis compared to the prior-year period, reflecting growth in both wholesale and DTC channels.

Previous wording

Asia. Currency translation did not have a significant impact on net revenues for the three-month period ended August 31, 2025, and had an unfavorable impact of approximately $11 million for the nine-month period ended August 31, 2025. Net revenues in Asia increased for the three-month and nine-month periods ended August 31, 2025 on both reported and organic net revenues basis.

Current wording

Asia. Currency translation did not have a significant impact on net revenues for the three months ended March 1, 2026. Net revenues in Asia increased for the three-month period ended March 1, 2026 compared to the prior year period on both a reported and organic net revenues basis and in both our DTC and wholesale channels.

Previous wording

Organic net revenues increased in our DTC and wholesale channels for the three-month and nine-month periods ended August 31, 2025, particularly in India, Japan and Turkey. 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 46 more company-operated stores in operation in Asia as of August 31, 2025 as compared to August 25, 2024. The increase in wholesale revenue was primarily due to an increase in units sold. DTC and wholesale revenues benefited from price increases in Turkey and India.

Current wording

The increase in DTC revenues was primarily due to store performance and expansion in our company-operated stores as a result of increased average revenues per unit and higher volumes. We benefited from 38 more company-operated stores in operation in Asia as of March 1, 2026 as compared to March 2, 2025. The increase in wholesale revenues was primarily due to an increase in units sold.

Previous wording

Beyond Yoga®. Net revenues in Beyond Yoga® increased on a reported and organic net revenues basis for the three-month and nine-month periods ended August 31, 2025 compared to the prior year periods, primarily due to growth in e-commerce net revenues reflecting higher demand, partially offset by a decrease in wholesale net revenues. Currency translation did not have an impact on net revenues.

Current wording

Beyond Yoga®. Net revenues in Beyond Yoga® increased on a reported and organic net revenues basis for the three-month period ended March 1, 2026 compared to the prior year period, primarily due to growth in e-commerce net revenues reflecting higher demand. Currency translation did not have an impact on net revenues.

Previous wording

Wholesale. Currency translation had a favorable impact on net revenues of approximately $12 million for the three-month period ended August 31, 2025 and an unfavorable impact of approximately $21 million for the nine-month period ended August 31, 2025. Net revenues in our wholesale channel increased for the three-month and nine-month periods ended August 31, 2025 compared with the prior-year periods on a reported and organic net revenues basis primarily due to higher volumes. For the nine-month period ended August 31, 2025, wholesale revenues on a reported basis increased in the Americas, partially offset by a decline in Europe due to the divestiture of the footwear category.

Current wording

Wholesale. Currency translation had a favorable impact on net revenues of approximately $29 million for the three months ended March 1, 2026. Net revenues in our wholesale channel increased for the three-month period ended March 1, 2026 compared with the prior-year period on a reported and organic net revenues basis primarily due to higher volumes, and benefited from price increases. Wholesale revenues in the first quarter of 2025 were negatively impacted by decreased shipping in connection with the transition to the distribution center in Dorsten, Germany.

Previous wording

DTC (Direct to Consumer). Currency translation had a favorable impact on net revenues of approximately $15 million for the three-month period ended August 31, 2025 and an unfavorable impact of approximately $6 million for the nine-month period ended August 31, 2025. Net revenues in our DTC channel increased on both a reported and organic net revenues basis for the three-month and nine-month periods ended August 31, 2025. The increase was driven by store performance, as well as e-commerce, which was driven primarily by higher traffic. On an organic net revenues basis our DTC business grew 7% and 8% in the U.S., 4% and 8% in Europe, and 14% and 13% in Asia for the three-month and nine-month periods ended August 31, 2025, respectively. For the three-month and nine-month periods ended August 31, 2025 net revenues from e-commerce on a reported basis grew 18% and 14%, respectively. As a percentage of net revenues on a reported basis for the three-month and nine-month periods ended August 31, 2025, DTC comprised 46% and 49% of total net revenues, respectively.

Current wording

DTC (Direct to Consumer). Currency translation had a favorable impact on net revenues of approximately $41 million for the three months ended March 1, 2026. Net revenues in our DTC channel increased on both a reported and organic net revenues basis for the three-month period ended March 1, 2026. The increase was driven by store performance and store expansion. E-commerce revenues increased driven primarily by higher traffic, higher units per transaction and higher average revenues per unit. DTC revenues also benefited from price increases. For the three-month period ended March 1, 2026 net revenues from e-commerce on a reported basis grew 21%. As a percentage of net revenues on a reported basis for the three-month period ended March 1, 2026 DTC comprised 52% of total net revenues.

Previous wording

Levi’s®. Currency translation had a favorable impact on net revenues of approximately $27 million for the three-month period ended August 31, 2025 and an unfavorable impact of approximately $26 million for the nine-month period ended August 31, 2025. Net revenues for the Levi’s® brand increased on both a reported and organic net revenues basis for the three-month and nine-month periods ended August 31, 2025. The increase was a result of higher revenue in our DTC channel, primarily due to improved store performance and higher e-commerce traffic, and an increase in wholesale revenues, primarily in the Americas, due to higher volume.

Current wording

Levi’s®. Currency translation had a favorable impact on net revenues of approximately $71 million for the three months ended March 1, 2026. Net revenues for the Levi’s® brand increased on both a reported and organic net revenues basis for the three-month period ended March 1, 2026. The increase was a result of higher revenue in our DTC channel, primarily due to store performance and expansion and higher e-commerce traffic, and an increase in wholesale revenues due to higher volumes. Net revenues for the Levi’s® brand also benefited from price increases.

Previous wording

Levi Strauss Signature™. Currency translation did not have a significant impact on net revenues for the three-month and nine-month periods ended August 31, 2025. Net revenues for the Levi Strauss Signature™ brand increased on both a reported and organic net revenues basis for the three-month and nine-month periods ended August 31, 2025 due to more units sold.

Current wording

Levi Strauss Signature™. Currency translation did not have a significant impact on net revenues for the three months ended March 1, 2026. Net revenues for the Levi Strauss Signature™ brand increased on both a reported and organic net revenues basis for the three months ended March 1, 2026 due to more units sold.

Previous wording

Currency translation had a favorable impact on gross profit of approximately $18 million for the three-month period ended August 31, 2025 and an unfavorable impact of approximately $10 million for the nine-month period ended August 31, 2025. For the three-month period ended August 31, 2025, the increase in gross margin was primarily driven by favorable channel mix and price increases, partially offset by the impact of tariffs. For the nine-month period ended August 31, 2025, the increase in gross margin was primarily driven by favorable channel mix and lower product costs. Additionally, gross margin increased approximately 50 basis points and 40 basis points as a result of currency exchange, including transaction impacts, for the three-month and nine-month periods ended August 31, 2025, respectively,

Current wording

Currency translation had a favorable impact on gross profit of approximately $47 million for the three months ended March 1, 2026. For the three-month period ended March 1, 2026, the decrease in gross margin was primarily driven by the impact of tariffs, partially offset by price increases and less promotional activity. Additionally, gross margin increased approximately 30 basis points as a result of currency exchange, including transaction impacts, for the three-month period ended March 1, 2026.

Previous wording

Currency translation had an unfavorable impact on SG&A of approximately $12 million and a favorable impact of approximately $5 million for the three-month and nine-month periods ended August 31, 2025, respectively.

Current wording

Currency translation had an unfavorable impact on SG&A of approximately $30 million for the three months ended March 1, 2026.

Previous wording

Selling. Currency translation had an unfavorable impact on selling expenses of approximately $7 million and a favorable impact of approximately $3 million for the three-month and nine-month periods ended August 31, 2025, respectively. Excluding the effects of currency, selling expenses increased for the three-month and nine-month periods ended August 31, 2025 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.

Current wording

Selling. Currency translation had an unfavorable impact on selling expenses of approximately $17 million for the three months ended March 1, 2026. Excluding the effects of currency, selling expenses increased for the three-month period ended March 1, 2026 primarily due to higher DTC store expenses in the current year as compared to the prior-year period, including from store expansion.

Previous wording

Advertising and promotion. Currency translation did not have a significant impact on advertising and promotion expenses for the three-month and nine-month periods ended August 31, 2025. The increase in advertising and promotion expenses was due to increased media spending which included expenses associated with the REIIMAGINE campaign.

Current wording

Advertising and promotion. Currency translation had an unfavorable impact on advertising and promotion expenses of approximately $3 million for the three months ended March 1, 2026. Excluding the effects of currency, the increase in advertising and promotion expenses was primarily due to increased spending related to the launch of the Behind Every Original campaign, including a commercial during Super Bowl LX which was held at Levi’s® Stadium.

Previous 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 August 31, 2025, and had a favorable impact of approximately $2 million for the nine-month period ended August 31, 2025. The increase in other expenses for the three-month period ended August 31, 2025 was primarily due to increases in incentive compensation, professional fees and technology costs partially offset by lower restructuring-related charges and an $11.1 million impairment charge related to discontinued technology projects in the prior year. During the three-month periods ended August 31, 2025 and August 25, 2024 the company recorded restructuring related charges of $4.3 million and $19.0 million, respectively.

Current wording

Other. Other expenses include functional administrative and organization costs, information resources, and marketing organization costs. Currency translation had an unfavorable impact on other expenses of approximately $4 million for the three months ended March 1, 2026. The increase in other SG&A expenses for the three-month period ended March 1, 2026 includes the impact of attorney fees of $9.8 million related to a gain on legal settlement, partially offset by a decrease in incentive compensation.

Previous wording

During the three-month and nine-month periods ended August 31, 2025, we recognized restructuring charges of $8.6 million and $22.1 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 largely offset by a gain on sale of a previously closed distribution center. During the three-month and nine-month periods ended August 25, 2024, we recognized restructuring charges, net of $3.4 million and $171.6 million, respectively, in connection with Project Fuel consisting primarily of severance and other post-employment benefit charges.

Current wording

During the three-month period ended March 1, 2026 we recognized restructuring charges of $7.9 million consisting primarily of severance and other post-employment benefit charges in connection with our continuing global productivity initiative. During the three-month period ended March 2, 2025 we recognized restructuring charges of $6.7 million in connection with Project Fuel, a multi-year global productivity initiative that was substantially complete as of November 30, 2025, consisting primarily of severance and other post-employment benefit charges, contract termination costs and asset impairments.