LEVI STRAUSS & CO (LEVI) SEC Filings & Earnings Calls

DTC business fell short of internal expectations, though management expects improvement in Q4.

“While our direct-to-consumer business fell short of our internal expectations, we moved quickly to address the shortfall and are encouraged by the strength we are seeing heading into the holiday season.” · word for word

Tariff refund benefit is partially redeployed, creating uncertainty about sustainability of margin expansion.

“The impact of tariff refunds contributed 490 basis points of margin expansion, of which approximately 160 basis points were redeployed to support the business.”

Macroeconomic pressures, tariffs, and currency fluctuations remain risks to outlook.

“This outlook also assumes no significant worsening of macro-economic pressures on the consumer, inflationary pressures, supply chain disruptions, potential tariffs or currency fluctuations.” · word for word

Tariff Uncertainty

“Uncertainty continues to exist regarding current and future tariffs. Many of our products are produced in countries, such as Bangladesh, Cambodia, Pakistan, and Vietnam, that were subject to the invalidated U.S. IEEPA tariffs, and are subject to the new prospective tariffs.” · word for word

Consumer Demand Pressure

“Macroeconomic pressures in the U.S. and the global economy such as changes in tariff regimes, inflation, interest rates, energy prices and recession fears are creating a complex and challenging retail environment for us and our customers.” · word for word

Logistics Transition Disruption

“This transition from owner-operated facilities to third-party logistics providers has and may continue to cause disruptions and service level impacts to these centers as we transition or restructure systems, technology and employees.” · word for word

Foreign Exchange Volatility

“Foreign currencies continue to be volatile, with the volatility increasing due to the imposition of tariffs and evolving trade policies.” · word for word

Tax Legislation Uncertainty

“Pillar Two could adversely impact our effective tax rates, tax liability and cash taxes in 2026 and future years.” · word for word

Potential regulatory and reputational risk from cybersecurity incident

“Company detected unauthorized access; investigation ongoing; notifications to regulators.”

Tariff and FX headwinds persist; tariffs on China at 30% and Rest-of-World at 20% assumed in guidance

“Tariffs and foreign exchange were a headwind in the quarter.” · word for word

Macroeconomic pressures on consumer and supply chain disruptions remain risks

“This outlook also assumes no significant worsening of macro-economic pressures on the consumer, inflationary pressures, supply chain disruptions, potential tariffs or currency fluctuations.” · word for word

Tariff cost pressure

“These increased costs could lead to a significant increase in cost of sales and a significant reduction in gross margin and income from operations.” · word for word

Consumer demand uncertainty

“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.” · word for word

Distribution transition disruption

“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.” · word for word

Tariff cost pressure

“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.” · word for word

Logistics transition disruption

“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 ... has and may continue to cause interruptions to these centers as we transition or restructure systems, technology and employees.” · word for word

Macroeconomic consumer demand pressure

“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.” · word for word

Foreign exchange volatility

“Foreign currencies continue to be volatile, with the volatility increasing due to the imposition of tariffs and evolving trade policies.” · word for word

Tariff impact on gross margin and guidance assumptions; potential escalation could pressure margins.

“Gross margin impacted by tariffs; guidance assumes U.S. tariffs on China at 30%, Rest-of-World at 20%.”

Leadership transition risk with CFO retirement.

“CFO Harmit Singh to retire after transition; search for successor initiated.”

Macroeconomic pressures on consumer spending could affect demand.

“Guidance assumes no significant worsening of macro-economic pressures on the consumer.”

Tariff headwinds on gross margin and EBIT margin; guidance assumes tariffs remain elevated.

“Gross margin impacted by tariffs; guidance assumes U.S. tariffs on imports from China at 30% and Rest-of-World at 20%.”

Higher tax rate expected in FY2026 (~23% vs prior year) creating ~$0.04 EPS headwind.

“Tax rate: approximately 23%, 2 points higher than prior year; adjusted diluted EPS includes $0.04 headwind from higher tax rate.”

Macroeconomic pressures on consumer, inflation, supply chain disruptions, and currency fluctuations could impact guidance.

“Guidance assumes no significant worsening of macro-economic pressures on the consumer, inflationary pressures, supply chain disruptions, potential tariffs or currency fluctuations.”

Beyond Yoga goodwill impairment risk

“Although the fair values of the Beyond Yoga reporting unit and the indefinite lived trademark intangible exceeded their carrying values, the fair values of the Beyond Yoga reporting unit and the indefinite lived trademark intangible were less than 10% over their carrying values.” · word for word

Tariff exposure

“The increase in gross margin was primarily driven by favorable channel mix, price increases, and lower product costs, partially offset by the impact of tariffs.” · word for word

Debt and interest rate risk

“As of November 30, 2025, we had $1.0 billion of unsecured debt. Our weighted-average interest rate on average borrowings outstanding for fiscal year 2025 was 4.44%, as compared to 4.01% for fiscal year 2024.” · word for word