Q4 2025 Levi Strauss & Co Earnings Call

January 28, 2026

November 30th 2025, all parties will be in a listen-only mode until the question and answer session at which time instructions will follow.

This conference call is being recorded and may not be reproduced in whole or in part without written permission from the company.

Operator: Good day, ladies and gentlemen, and welcome to the Levi Strauss & Co. Fourth Quarter Fiscal Year-End Earnings Conference Call for the period ending November 30, 2025. All parties will be in a listen-only mode until the question and answer session, at which time instructions will follow. This conference call is being recorded and may not be reproduced in whole or in part, without written permission from the company. This conference call is being broadcast over the internet, and a replay of the webcast will be accessible for one quarter on the company's website, levistrauss.com. I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Co.

Good day, ladies and gentlemen, and welcome to the Levi Strauss & Co. Fourth Quarter Fiscal Year-End Earnings Conference Call for the period ending November 30, 2025. All parties will be in a listen-only mode until the question and answer session, at which time instructions will follow. This conference call is being recorded and may not be reproduced in whole or in part, without written permission from the company. This conference call is being broadcast over the internet, and a replay of the webcast will be accessible for one quarter on the company's website, levistrauss.com. I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Co.

This conference call is being broadcast over the internet. And a replay of the webcast will be accessible for 1 quarter on the company's website, Levi strauss.com.

I would now like to turn the call over to Ida orphan, vice president of investor relations at Levi, Strauss and Company.

Aida Orphan: Thank you for joining us on the call today to discuss the results for our Q4 and fiscal year-end. Joining me on today's call are Michelle Gass, our President and CEO, and Harmit Singh, our Chief Financial and Growth Officer. We'd like to remind you that we will be making forward-looking statements based on current expectations, and those statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in our reports filed with the SEC. We assume no obligation to update any of these forward-looking statements. Additionally, during this call, we will discuss certain non-GAAP financial measures, which are not intended to be a substitute for our GAAP results. Definitions of these measures and reconciliations to their most comparable GAAP measure are included in our earnings release, available on the IR section of our website, investors.levistrauss.com.

Q4 2025 Levi Strauss & Co Earnings Call

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Levi Strauss & Co

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Q4 2025 Levi Strauss & Co Earnings Call

LEVI

Wednesday, January 28th, 2026 at 10:00 PM

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Thank you for joining us on the call today to discuss the results for our fourth quarter and fiscal year, end joining me on today's. Call are Michelle Goss, our president and CEO and hermit Singh, our chief financial and growth officer. We'd like to remind you that we will be making forward-looking statements based on current expectations. And those statements are subject to certain risks and uncertainties that could cause actual results to differ materially these risks and uncertainties are detailed in our reports filed with the SEC. We assume no obligation to update any of these forward-looking statements. Additionally, during this call, we will discuss certain non-gaap Financial measures which are not intended to be a substitute for our Gap. Results. Definitions of these measures and reconciliations to their most comparable. Gaap measure are included in our earnings release available on the IR section of our website investors. Levi strauss.com,

Michelle Gass: Thank you, and welcome everyone to today's call. The fourth quarter punctuated a strong year, defined by progress against our strategy, accelerating brand momentum, and solid financial performance. Over the past two years, we've taken bold steps on our journey to become a DTC first, head-to-toe denim lifestyle retailer. We've made deliberate strategic choices to maximize the potential of the Levi's brand, narrow our focus by exiting non-core businesses, and vigorously pursue our highest return growth opportunities. We are becoming a more consumer-focused, DTC-centric lifestyle company, which has led to faster growth and higher profitability. These efforts led to strong full-year financial results. In 2025, we delivered organic net revenue growth of 7%, which was broad-based across all facets of our business. Here are a few key highlights for the year. As a reminder, all numbers Harmit and I will reference are on an organic basis.

Michelle Gass: First, the Levi's brand grew 7%. Levi's strengthened its standing as the number one denim brand in the world, and today holds more market share than the next two global competitors combined. Second, we took a big step forward in our evolution to becoming a true lifestyle apparel brand by bringing to market our most robust head-to-toe product pipeline to date. This drove growth across channels and meaningfully increased our total addressable market. Third, we accelerated our DTC transformation, growing 11%, which now comprises approximately half of our total business. Importantly, we saw significant DTC margin expansion in 2025 as we delivered high single-digit comp growth for the year and a more efficient operating structure in both stores and e-commerce. Fourth, our wholesale channel continued to deliver more stable growth, ending the year up 4%, fueled by our expanded lifestyle assortment as well as new distribution.

First, the Levi's brand grew 7%. Levi's strengthened its standing as the number one denim brand in the world, and today holds more market share than the next two global competitors combined. Second, we took a big step forward in our evolution to becoming a true lifestyle apparel brand by bringing to market our most robust head-to-toe product pipeline to date. This drove growth across channels and meaningfully increased our total addressable market. Third, we accelerated our DTC transformation, growing 11%, which now comprises approximately half of our total business. Importantly, we saw significant DTC margin expansion in 2025 as we delivered high single-digit comp growth for the year and a more efficient operating structure in both stores and e-commerce. Fourth, our wholesale channel continued to deliver more stable growth, ending the year up 4%, fueled by our expanded lifestyle assortment as well as new distribution.

Michelle Gass: Fifth, our growth in women's continued to accelerate, up 11% for the year, with both tops and bottoms delivering double-digit growth, in addition to 5% growth in men's. And while we drove significant top-line growth, we also delivered our highest-ever gross margin as well as adjusted EBIT margin expansion. Now, turning to details of the Q4. Total company revenues increased 5% on top of 8% growth last year, and this momentum continued through the holidays, with 7% growth during the November-December holiday season, reflecting strength across both DTC and wholesale channels. This marked our highest revenue for the holiday period in at least a decade. First, I will walk you through the progress made against our brand-led strategy, which centers around how we're amplifying the power of the Levi's brand through an innovative and fresh product pipeline and culturally relevant marketing.

Fifth, our growth in women's continued to accelerate, up 11% for the year, with both tops and bottoms delivering double-digit growth, in addition to 5% growth in men's. And while we drove significant top-line growth, we also delivered our highest-ever gross margin as well as adjusted EBIT margin expansion. Now, turning to details of the Q4. Total company revenues increased 5% on top of 8% growth last year, and this momentum continued through the holidays, with 7% growth during the November-December holiday season, reflecting strength across both DTC and wholesale channels. This marked our highest revenue for the holiday period in at least a decade. First, I will walk you through the progress made against our brand-led strategy, which centers around how we're amplifying the power of the Levi's brand through an innovative and fresh product pipeline and culturally relevant marketing.

Michelle Gass: In Q4, the Levi's brand grew 4%, driven by strength in men's and even higher growth in women's. Growth in men's and women's continues to be driven by both our core as well as the newness we've introduced throughout our assortment. A testament to the strength of the brand, in 2025, we cemented our number one position in men's, women's, and in our key youth demographic of 18- to 30-year-olds in the US. These share gains are supported by strong brand heat, reflected by higher social media engagement and meaningful gains in brand equity versus last year. In Q4, we continued to fuel our global brand momentum while strengthening our relevance in local markets. We unveiled a number of unique collaborations. Examples of these include a premium collection with Barbour and a limited edition footwear launch with Nike and Japanese streetwear icon, Nigo.

In Q4, the Levi's brand grew 4%, driven by strength in men's and even higher growth in women's. Growth in men's and women's continues to be driven by both our core as well as the newness we've introduced throughout our assortment. A testament to the strength of the brand, in 2025, we cemented our number one position in men's, women's, and in our key youth demographic of 18- to 30-year-olds in the US. These share gains are supported by strong brand heat, reflected by higher social media engagement and meaningful gains in brand equity versus last year. In Q4, we continued to fuel our global brand momentum while strengthening our relevance in local markets. We unveiled a number of unique collaborations. Examples of these include a premium collection with Barbour and a limited edition footwear launch with Nike and Japanese streetwear icon, Nigo.

Michelle Gass: We celebrated our final chapter of the Reimagine campaign with Beyoncé and launched our global campaign targeted at men, featuring Shaboozey and Matty Matheson. And we also reinforced our long-standing link to music culture by celebrating a full decade as an official sponsor of Corona Capital, Mexico's largest music festival, putting the brand front and center in our second-largest market. Moving to product. Our evolution into denim lifestyle is resonating, and the Levi's brand is gaining even more share of the closet as our tops business continues to accelerate. The tops reset we initiated a few years ago, bringing in new internal talent, new vendors, and enhanced capabilities, is paying off today. In Q4, tops grew double digits, driving nearly half of our revenue growth and meaningfully higher AURs versus last year.

We celebrated our final chapter of the Reimagine campaign with Beyoncé and launched our global campaign targeted at men, featuring Shaboozey and Matty Matheson. And we also reinforced our long-standing link to music culture by celebrating a full decade as an official sponsor of Corona Capital, Mexico's largest music festival, putting the brand front and center in our second-largest market. Moving to product. Our evolution into denim lifestyle is resonating, and the Levi's brand is gaining even more share of the closet as our tops business continues to accelerate. The tops reset we initiated a few years ago, bringing in new internal talent, new vendors, and enhanced capabilities, is paying off today. In Q4, tops grew double digits, driving nearly half of our revenue growth and meaningfully higher AURs versus last year.

Michelle Gass: Strength was broad-based, reflecting growth across men's and women's, which was driven by strong demand in our elevated assortment of sweaters, wovens, and outerwear. Tops will continue to be instrumental to our denim lifestyle strategy, and while we're pleased about our progress to date, we are just getting started as a destination for the tops category. Within our bottoms business, we are showcasing our most diversified portfolio yet, with everything from our core icons to our innovative fashion fits and non-denim bottoms, all delivering growth. While skinny and straight fits remain popular, loose and baggy styles continue to accelerate. New styles like the 578 Baggy for him and our expanding Barrel family for her, are fueling momentum as we own more of the denim market in both his and her closet.

Strength was broad-based, reflecting growth across men's and women's, which was driven by strong demand in our elevated assortment of sweaters, wovens, and outerwear. Tops will continue to be instrumental to our denim lifestyle strategy, and while we're pleased about our progress to date, we are just getting started as a destination for the tops category. Within our bottoms business, we are showcasing our most diversified portfolio yet, with everything from our core icons to our innovative fashion fits and non-denim bottoms, all delivering growth. While skinny and straight fits remain popular, loose and baggy styles continue to accelerate. New styles like the 578 Baggy for him and our expanding Barrel family for her, are fueling momentum as we own more of the denim market in both his and her closet.

Michelle Gass: In Q4, we successfully completed the global rollout of our Blue Tab collection, which represents the most premium expression of our brand. While we are still in the early stages, the strong consumer response to this collection gives us conviction in the opportunity in the premium segment of the market, which is sizable and largely underpenetrated by the Levi's brand. In 2026, we will further expand the assortment and roll it out more broadly across our DTC business, as well as select premium wholesale accounts. Looking to 2026, we enter the year with a robust product pipeline and a brand that's more culturally relevant than ever. For the first time in more than 20 years, Levi's will debut its newest ad during the Super Bowl, which will be hosted at Levi's Stadium, marking the launch of our new global campaign that will run through 2026.

In Q4, we successfully completed the global rollout of our Blue Tab collection, which represents the most premium expression of our brand. While we are still in the early stages, the strong consumer response to this collection gives us conviction in the opportunity in the premium segment of the market, which is sizable and largely underpenetrated by the Levi's brand. In 2026, we will further expand the assortment and roll it out more broadly across our DTC business, as well as select premium wholesale accounts. Looking to 2026, we enter the year with a robust product pipeline and a brand that's more culturally relevant than ever. For the first time in more than 20 years, Levi's will debut its newest ad during the Super Bowl, which will be hosted at Levi's Stadium, marking the launch of our new global campaign that will run through 2026.

Michelle Gass: With this kickoff and more major global moments to come, including several World Cup games to be held at Levi's Stadium this summer, we are energized by the runway ahead and confident in our ability to keep driving the Levi's brand forward. Now, shifting to our next strategy, to be DTC first. In Q4, our global direct-to-consumer business delivered another quarter of double-digit growth, up 10%, and posted its 15th consecutive quarter of positive comps. We generated another quarter of high single-digit comp growth, reflecting positive performance across all store KPIs, including traffic, conversion, and UPT, in addition to AUR growth across every segment. In Q4, we opened 47 net new system stores, including mainline locations in Japan, India, Thailand, and Korea, as we continue to expand our DTC presence in Asia.

With this kickoff and more major global moments to come, including several World Cup games to be held at Levi's Stadium this summer, we are energized by the runway ahead and confident in our ability to keep driving the Levi's brand forward. Now, shifting to our next strategy, to be DTC first. In Q4, our global direct-to-consumer business delivered another quarter of double-digit growth, up 10%, and posted its 15th consecutive quarter of positive comps. We generated another quarter of high single-digit comp growth, reflecting positive performance across all store KPIs, including traffic, conversion, and UPT, in addition to AUR growth across every segment. In Q4, we opened 47 net new system stores, including mainline locations in Japan, India, Thailand, and Korea, as we continue to expand our DTC presence in Asia.

Michelle Gass: Over the past year, we have transformed our retail operations, both in stores and online, improving the consumer experience and store productivity. We've enhanced our in-store lifestyle merchandising, highlighting our broader assortment of head-to-toe looks. We've improved our assortment planning and lifecycle management, resulting in lower promotions and higher full-price selling. We're rolling out a new global selling model for our store team, which will deliver operational efficiencies and improved consumer engagement. We are still in the early stages of what we believe is a significant opportunity to continue to improve our DTC margins, which will be a key driver of our overall company margins. Our efforts to build a strong digital foundation have enabled us to accelerate our e-commerce business, and in Q4, we delivered another quarter of very strong e-commerce growth, up 22%.

Over the past year, we have transformed our retail operations, both in stores and online, improving the consumer experience and store productivity. We've enhanced our in-store lifestyle merchandising, highlighting our broader assortment of head-to-toe looks. We've improved our assortment planning and lifecycle management, resulting in lower promotions and higher full-price selling. We're rolling out a new global selling model for our store team, which will deliver operational efficiencies and improved consumer engagement. We are still in the early stages of what we believe is a significant opportunity to continue to improve our DTC margins, which will be a key driver of our overall company margins. Our efforts to build a strong digital foundation have enabled us to accelerate our e-commerce business, and in Q4, we delivered another quarter of very strong e-commerce growth, up 22%.

Michelle Gass: We are leveraging AI to make online shopping easier and more inspiring for our fans. We recently launched Outfitting, an AI-powered feature in the Levi's app that creates style looks using our full assortment, purchasing behavior, and product imagery. This year, we'll evolve Outfitting with even more consumer-centric customization, and we'll launch a new consumer-facing AI stylist chatbot that enables personalized recommendations through conversation. We are also continuing to scale the use of AI and advanced analytics across the organization as we accelerate our shift to a best-in-class, direct-to-consumer retailer. For example, we recently announced our plans to develop and deploy an integrated agentic AI platform to simplify and automate task-driven work throughout the organization, driving efficiency, productivity, and enabling growth. Built in partnership with Microsoft and as a frontier firm in the industry, we're currently testing this technology and plan to roll it out to employees this year.

We are leveraging AI to make online shopping easier and more inspiring for our fans. We recently launched Outfitting, an AI-powered feature in the Levi's app that creates style looks using our full assortment, purchasing behavior, and product imagery. This year, we'll evolve Outfitting with even more consumer-centric customization, and we'll launch a new consumer-facing AI stylist chatbot that enables personalized recommendations through conversation. We are also continuing to scale the use of AI and advanced analytics across the organization as we accelerate our shift to a best-in-class, direct-to-consumer retailer. For example, we recently announced our plans to develop and deploy an integrated agentic AI platform to simplify and automate task-driven work throughout the organization, driving efficiency, productivity, and enabling growth. Built in partnership with Microsoft and as a frontier firm in the industry, we're currently testing this technology and plan to roll it out to employees this year.

Michelle Gass: These initiatives are rewiring the company for a bold future, creating meaningful opportunities to enhance consumer experiences while unlocking additional operational efficiencies. While DTC continues to drive outsized growth, wholesale continues to be an important channel for us to amplify the brand and reach our consumers where they choose to shop. Our global wholesale business was flat for the quarter and ended the year up 4%. The channel has stabilized over the past year as our efforts to elevate the brand and to broaden the assortment gain traction. Now, turning to our third strategy, powering the portfolio. In Q4, our international business grew 8%, led by an acceleration in Europe and solid growth in Latin America. International comprises nearly 60% of total sales, and given the strength of the brand and our expansion into lifestyle, we see an immense opportunity for continued profitable growth outside the US.

These initiatives are rewiring the company for a bold future, creating meaningful opportunities to enhance consumer experiences while unlocking additional operational efficiencies. While DTC continues to drive outsized growth, wholesale continues to be an important channel for us to amplify the brand and reach our consumers where they choose to shop. Our global wholesale business was flat for the quarter and ended the year up 4%. The channel has stabilized over the past year as our efforts to elevate the brand and to broaden the assortment gain traction. Now, turning to our third strategy, powering the portfolio. In Q4, our international business grew 8%, led by an acceleration in Europe and solid growth in Latin America. International comprises nearly 60% of total sales, and given the strength of the brand and our expansion into lifestyle, we see an immense opportunity for continued profitable growth outside the US.

Michelle Gass: Beyond Yoga was up 45% in Q4, fueled by the positive response to our Seek Beyond campaign, launched in Q3, and product expansion into new categories across active lifestyle. DTC performed particularly well, and we opened 4 new stores in the quarter. Beyond Yoga ended the year up 17%. As we look to 2026, the brand will continue to expand its retail presence in new markets and launch the next iteration of our broadened lifestyle assortment. Looking ahead, I am more confident than ever in our future potential. While we continue to navigate a dynamic global environment, we do so from a position of strength with an iconic brand, deep connection with our fans, and the agility to adapt and grow. Our strategies are working, and we have the right capabilities and team in place to continue to drive momentum in the year ahead.

Beyond Yoga was up 45% in Q4, fueled by the positive response to our Seek Beyond campaign, launched in Q3, and product expansion into new categories across active lifestyle. DTC performed particularly well, and we opened 4 new stores in the quarter. Beyond Yoga ended the year up 17%. As we look to 2026, the brand will continue to expand its retail presence in new markets and launch the next iteration of our broadened lifestyle assortment. Looking ahead, I am more confident than ever in our future potential. While we continue to navigate a dynamic global environment, we do so from a position of strength with an iconic brand, deep connection with our fans, and the agility to adapt and grow. Our strategies are working, and we have the right capabilities and team in place to continue to drive momentum in the year ahead.

Michelle Gass: We'll keep building our denim lifestyle leadership by bringing fans fresh, new product across every category, while continuing to celebrate the iconic styles that have shaped generations. We'll continue to keep Levi's at the center of culture through a focus on sports, music, and youth, showing up powerfully on the world's biggest stages and sparking excitement that deepens our cultural relevance globally. All of this is supported by our continued commitment to drive operational excellence and to strengthen our execution, grounded in a focus on discipline, accountability, and performance... I'd like to thank our incredible, talented, and passionate team for driving our transformation into the world's denim lifestyle leader and delivering outstanding service to our fans every day. Together, we're building a stronger foundation for sustainable, long-term value creation.

We'll keep building our denim lifestyle leadership by bringing fans fresh, new product across every category, while continuing to celebrate the iconic styles that have shaped generations. We'll continue to keep Levi's at the center of culture through a focus on sports, music, and youth, showing up powerfully on the world's biggest stages and sparking excitement that deepens our cultural relevance globally. All of this is supported by our continued commitment to drive operational excellence and to strengthen our execution, grounded in a focus on discipline, accountability, and performance... I'd like to thank our incredible, talented, and passionate team for driving our transformation into the world's denim lifestyle leader and delivering outstanding service to our fans every day. Together, we're building a stronger foundation for sustainable, long-term value creation.

Harmit Singh: Thank you, Michelle. 2025 was a strong year with continued consistent, profitable growth for our company. I'm pleased that our growth has accelerated over the last 3 years, and we have established ourselves as a consistent mid-single-digit growth company, which we expect to continue in 2026. We've also made progress each year on expanding margins, both gross and operating, while driving higher returns on invested capital, ending the year at approximately 16%. Our 2025 financial results reflect the strength of our business and demonstrate that we have the right building blocks in place to drive long-term sustainable growth. Our focus on denim lifestyle has enabled us to accelerate growth by expanding our total addressable market with our broadened assortment of non-denim bottoms, tops, dresses, and skirts, which contributed to almost 1/3 of our growth in 2025.

Harmit Singh: Our disciplined approach to converting growth into profitability improved adjusted EBIT margin by 70 basis points in 2025. We achieved this while navigating higher tariffs and investing in remapping our distribution network as we build the roadmap towards becoming a $10 billion DTC-first company. In 2026, we will continue to grow adjusted EBIT margins through our relentless focus on driving higher revenue flow-through while making the right investments for our long-term growth, including growing our store base, AI capabilities, and marketing. In addition, we're making meaningful progress on mitigating tariff impacts on our P&L through targeted pricing actions, higher full price selling, lower product costs, and prudent management of our cost base. Now, let me walk you through the specifics of our fourth quarter performance. Organic net revenues grew 5% and were up 13% on a 2-year stack.

Our disciplined approach to converting growth into profitability improved adjusted EBIT margin by 70 basis points in 2025. We achieved this while navigating higher tariffs and investing in remapping our distribution network as we build the roadmap towards becoming a $10 billion DTC-first company. In 2026, we will continue to grow adjusted EBIT margins through our relentless focus on driving higher revenue flow-through while making the right investments for our long-term growth, including growing our store base, AI capabilities, and marketing. In addition, we're making meaningful progress on mitigating tariff impacts on our P&L through targeted pricing actions, higher full price selling, lower product costs, and prudent management of our cost base. Now, let me walk you through the specifics of our fourth quarter performance. Organic net revenues grew 5% and were up 13% on a 2-year stack.

Harmit Singh: Adjusted SG&A dollars grew 2.6% due to the sales upside, driving higher selling and incentive expenses, higher costs associated with the transition of our US distribution network, and unfavorable foreign exchange. A brief update on our distribution network transformation in the US. While we're making progress, the transition to the new third-party distribution center has taken longer than we expected. We've been working to fulfill our high demand by continuing to operate our own distribution center, which has led to higher transitory distribution costs, which we expect to continue to incur through the first half of 2026. We successfully executed a distribution transition from owned and operated to a hybrid model in Europe last year, enabling us to fulfill our strong demand, as evidenced by the double-digit revenue growth in the quarter, while improving our profitability in the region.

Adjusted SG&A dollars grew 2.6% due to the sales upside, driving higher selling and incentive expenses, higher costs associated with the transition of our US distribution network, and unfavorable foreign exchange. A brief update on our distribution network transformation in the US. While we're making progress, the transition to the new third-party distribution center has taken longer than we expected. We've been working to fulfill our high demand by continuing to operate our own distribution center, which has led to higher transitory distribution costs, which we expect to continue to incur through the first half of 2026. We successfully executed a distribution transition from owned and operated to a hybrid model in Europe last year, enabling us to fulfill our strong demand, as evidenced by the double-digit revenue growth in the quarter, while improving our profitability in the region.

Harmit Singh: This gives us confidence that we will successfully complete the transition in the US this year. Moving down to the EBIT line, adjusted EBIT margin contracted 180 basis points to 12.1% related to the impact of lapping the 53rd week and tariffs. This was slightly lower than our expectations due to the 3 reasons I mentioned before within SG&A. That is unfavorable effects, higher distribution costs, and incentive compensation. Fourth quarter adjusted diluted EPS was $0.41 higher than expectations. This includes a $0.03 headwind from a higher tax rate. We ended the year with reported inventory dollars up 9% to prior year and units up 2%. The year-over-year dollar increase was primarily driven by tariffs. We continue to believe our inventory, quantity, and quality are well-positioned globally and expect inventory levels ending fiscal 2026 to be below revenue growth.

This gives us confidence that we will successfully complete the transition in the US this year. Moving down to the EBIT line, adjusted EBIT margin contracted 180 basis points to 12.1% related to the impact of lapping the 53rd week and tariffs. This was slightly lower than our expectations due to the 3 reasons I mentioned before within SG&A. That is unfavorable effects, higher distribution costs, and incentive compensation. Fourth quarter adjusted diluted EPS was $0.41 higher than expectations. This includes a $0.03 headwind from a higher tax rate. We ended the year with reported inventory dollars up 9% to prior year and units up 2%. The year-over-year dollar increase was primarily driven by tariffs. We continue to believe our inventory, quantity, and quality are well-positioned globally and expect inventory levels ending fiscal 2026 to be below revenue growth.

Harmit Singh: US wholesale was down due to capacity constraints in our new 3PL, as well as strong growth from a key digital wholesale customer in the prior year. Our LATAM business was up 8%, fueled by growth across most markets and continued strength in DDC. Operating margins, which were up for the year, contracted 460 basis points in the quarter, primarily due to the lapping of the 53rd week and the impact of the tariffs. Europe net revenues accelerated up 10% in Q4, led by double-digit growth in our largest European markets, the UK and Germany. We delivered strong holiday performance and growth across all categories, including men's, women's, tops, and bottoms. Gross margin expansion and SG&A leverage resulted in operating margin growing 330 basis points versus prior year. Europe's operating margin for the full year grew 180 basis points.

US wholesale was down due to capacity constraints in our new 3PL, as well as strong growth from a key digital wholesale customer in the prior year. Our LATAM business was up 8%, fueled by growth across most markets and continued strength in DDC. Operating margins, which were up for the year, contracted 460 basis points in the quarter, primarily due to the lapping of the 53rd week and the impact of the tariffs. Europe net revenues accelerated up 10% in Q4, led by double-digit growth in our largest European markets, the UK and Germany. We delivered strong holiday performance and growth across all categories, including men's, women's, tops, and bottoms. Gross margin expansion and SG&A leverage resulted in operating margin growing 330 basis points versus prior year. Europe's operating margin for the full year grew 180 basis points.

Harmit Singh: Asia net revenues grew 4% year-over-year, fueled by strong DTC performance. Key markets, including Japan and Turkey, delivered double-digit growth this quarter as our head-to-toe lifestyle offerings continued to resonate with consumers and drive growth. Operating margin expanded 140 basis points versus prior year, driven by gross margin strength. For the full year, Asia grew 7% and operating margin expanded 60 basis points. Now, let's turn to our outlook for fiscal 2026 and Q1. We are pleased with our Q4 results and with our trends in the first quarter, including a successful holiday period. Looking to 2026, we expect organic net revenue growth of 4% to 5%, with 1 point favorability from foreign exchange, resulting in reported net revenue growth of 5% to 6%.

Harmit Singh: By segment, we expect the Americas to grow low single digits, Europe mid-single digits, and Asia mid to high single digits. By channel, we expect DDC to grow high single digits, fueled by positive comp sales, opening 50 to 60 net new system doors, and continued growth in e-commerce. Global wholesale is expected to be flat to slightly up, given plans to rationalize our wholesale footprint, particularly a few non-strategic accounts in the US, in support of our brand elevation strategy. Gross margin is expected to be flat to prior year. This includes an approximate 150 basis points gross impact from tariffs, which we plan to offset with pricing actions, higher full price selling, product cost reduction driven by lower cotton rates and vendor negotiations, SKU rationalization, and favorable mix. FX is expected to be a 20 basis point headwind to gross margin.

By segment, we expect the Americas to grow low single digits, Europe mid-single digits, and Asia mid to high single digits. By channel, we expect DDC to grow high single digits, fueled by positive comp sales, opening 50 to 60 net new system doors, and continued growth in e-commerce. Global wholesale is expected to be flat to slightly up, given plans to rationalize our wholesale footprint, particularly a few non-strategic accounts in the US, in support of our brand elevation strategy. Gross margin is expected to be flat to prior year. This includes an approximate 150 basis points gross impact from tariffs, which we plan to offset with pricing actions, higher full price selling, product cost reduction driven by lower cotton rates and vendor negotiations, SKU rationalization, and favorable mix. FX is expected to be a 20 basis point headwind to gross margin.

Harmit Singh: While these mitigation factors will begin to flow through the P&L early in the year, we anticipate the pace of benefit realization will accelerate as we progress through 2026, with a more meaningful contribution emerging in the later part of the year. The fundamental drivers of our gross margin expansion, which are mix, higher full price selling, continued product cost reduction, remain intact, positioning us well for a resumed full year expansion in 2027. We expect our fully adjusted SG&A rate to improve by approximately 40 to 60 basis points as the organization is increasingly focused on driving operating leverage. This is driven by cost actions to mitigate tariffs, expansion of our global talent hubs, limited headcount increases as we drive productivity and efficiencies by expanding AI usage, and easing costs from running parallel distribution centers in the second half of the year.

While these mitigation factors will begin to flow through the P&L early in the year, we anticipate the pace of benefit realization will accelerate as we progress through 2026, with a more meaningful contribution emerging in the later part of the year. The fundamental drivers of our gross margin expansion, which are mix, higher full price selling, continued product cost reduction, remain intact, positioning us well for a resumed full year expansion in 2027. We expect our fully adjusted SG&A rate to improve by approximately 40 to 60 basis points as the organization is increasingly focused on driving operating leverage. This is driven by cost actions to mitigate tariffs, expansion of our global talent hubs, limited headcount increases as we drive productivity and efficiencies by expanding AI usage, and easing costs from running parallel distribution centers in the second half of the year.

Harmit Singh: Because of this, we expect Q1 spend to be approximately 160 basis points than Q1 2025 and lower in the remaining three quarters of the year. As a result of the Q1 marketing phasing, operating margin is expected to contract versus prior year in Q1 2026, and then expand as gross margin expansion and operating cost leverage take hold, driving full year growth. Now, turning to the first quarter of 2026. We expect organic net revenue growth of 4% to 5%, consistent with our full year forecast, and a 3-point FX tailwind, resulting in 7% to 8% reported net revenue. On a two-year basis, this is an acceleration from Q4 2025 and demonstrates that we are maintaining momentum. Gross margin is expected to be slightly down versus Q1 2025, primarily due to the continued impacts of tariffs.

Because of this, we expect Q1 spend to be approximately 160 basis points than Q1 2025 and lower in the remaining three quarters of the year. As a result of the Q1 marketing phasing, operating margin is expected to contract versus prior year in Q1 2026, and then expand as gross margin expansion and operating cost leverage take hold, driving full year growth. Now, turning to the first quarter of 2026. We expect organic net revenue growth of 4% to 5%, consistent with our full year forecast, and a 3-point FX tailwind, resulting in 7% to 8% reported net revenue. On a two-year basis, this is an acceleration from Q4 2025 and demonstrates that we are maintaining momentum. Gross margin is expected to be slightly down versus Q1 2025, primarily due to the continued impacts of tariffs.

Harmit Singh: As noted earlier, we have already implemented further pricing actions earlier this month, and additional pricing actions will occur in February. Adjusted EBIT margin is expected to be down 140 basis points versus Q1 2025 to 12%, primarily driven by the timing of the marketing campaign. While the production costs are expensed in the first quarter, we expect to benefit from the campaign through the course of the year. Excluding ANP timing, adjusted EBIT margin leverages in Q1. In Q1, we expect adjusted diluted EPS to be between $0.35 to $0.38. This includes a $0.07 drag from ANP. In closing, 2025 was another solid year for us, while accelerating top line and bottom line, evidencing the success of our strategies and our transformation to a denim lifestyle DDC first company.

As noted earlier, we have already implemented further pricing actions earlier this month, and additional pricing actions will occur in February. Adjusted EBIT margin is expected to be down 140 basis points versus Q1 2025 to 12%, primarily driven by the timing of the marketing campaign. While the production costs are expensed in the first quarter, we expect to benefit from the campaign through the course of the year. Excluding ANP timing, adjusted EBIT margin leverages in Q1. In Q1, we expect adjusted diluted EPS to be between $0.35 to $0.38. This includes a $0.07 drag from ANP. In closing, 2025 was another solid year for us, while accelerating top line and bottom line, evidencing the success of our strategies and our transformation to a denim lifestyle DDC first company.

You know, we have established a track record of consistent, gross margin expansion. As you said our algorithm talks about expanding gross margin regularly, uh every year last year 25, we grew gross margins 110 basis points. And over the past 3 years is growing about 400 basis points. Uh, and and I'll talk a little bit about the structural drivers which are in intact talking about 26. Our guidance is at this time, flat to Prior year, what we have done nicely is offset the full impact of tariffs, um, you know, as the year progresses. So tariffs, as I mentioned, in my prepared, remarks, impacts gross margins that virtually by about 150 basis points. And we have an fx headwind of about 20. We're fully offsetting this with higher pricing. Uh you know, most of it's been implemented. Uh we have we not seeing any initials

Michelle Gass: I think what's really exciting is we're making this big transformation, as you know, from a denim bottoms business to a true head-to-toe denim lifestyle company. So when you think about 4 to 5% mid-single-digit growth ahead, you know, we do expect us to outperform the category. I mean, the category, and if you're talking just denim, it is accelerating globally, and as a leader, we are fueling that growth. You know, on that note, in the US, which is also growing, we have cemented our position as the number one share for men, women, and youth. And it's the first time that we can remember that all three of these targets have grown share and are number one. So, so it gives us tremendous confidence that strategies aren't changing, we're leaning in, and we're executing.

And I think what's really exciting is we're making this big transformation as you know from a denim bottoms business to a true head to toe denim lifestyle company. Um so when you think about 4 to 5% mid single-digit growth ahead, you know, we do expect Matt to outperform the category. I mean the category as you're talking, just denim, it is accelerating globally. And as a leader, we are fueling that growth, you know, on that note in the US which is also growing. We have cemented our position as the number 1, share for men's women's and youth. And it's the first time that we can remember that all 3 of these targets have grown share and are number 1. So so it gives us tremendous confidence, that strategies aren't changing. We're leaning in and we're executing. And then the last point I would make is, you know, just as we plan to continue to fuel. The denim category, we've expanded our total

And I think what's really exciting is we're making this big transformation as you know from a denim bottoms business to a true head to toe denim lifestyle company. Um so when you think about 4 to 5%, mid single digit growth ahead, you know, we do expect Matt to outperform the category. I mean the category as you're talking, just denim, it is accelerating globally. And as a leader, we are fueling that growth, you know, on that note in the US which is also growing. We have cemented our position as the number 1, share for men's women's and youth. And it's the first time that we can remember that all 3 of these targets have grown share and are number 1. So so it gives us tremendous confidence, that strategies aren't changing. We're leaning in and we're executing. And then the last point I would make is, you know, just as we plan to continue to fuel. The denim category, we've expanded our total uh,

And your second question, Matt. Uh, I think, uh, you know, holiday was strong for us. It, it centers around 2 strategies 1 is DDC. So as we become a DDC first company as a team, we really focused on making sure we win on holiday. We made sure. Uh, you know, this newness on the floor, we made sure the product that, uh, you know, is, uh, you know, being in Innovative was both with our wholesale customers, as well as, uh, in our stores and on e-commerce platforms and the teams really executed really well. So that's fact number 1, fact number 2 is just building on the 10 points that Michelle, just talked about that centers around the denim lifestyle, you know, Focus, uh, the the myth I would like to bust, uh, you know, is that we are we're just not only denim buttons, we are more than denim buttons. I mean, this is more of a head to toe lifestyle, then

Michelle Gass: Yeah. Yeah, absolutely. Thanks, Jay, for the question. We absolutely believe that there's a lot of upside in DTC, both from a revenue standpoint and margin. You know, as I commented earlier, 15 quarters of positive comp growth. So first of all, margin growth will come from leverage, you know, call it sales productivity. As we continue to drive higher volumes, we'll clearly leverage off of the fixed costs in our store, which includes, you know, your real estate, your fixed labor, just a lot of, you know, a lot of those, like I said, fixed costs. Secondly, I would say is, you know, we are really focused on retail excellence. That had a big impact in expanding our store margins this past year, and that will continue. So we're stepping up our operations capabilities.

Thank you. You know, Michelle and the prepared marks made a comment that you believe that the direct consumer Channel margins can uh, can move higher. Can you just dive into that a little bit and tell us, you know, what are the drivers and and where do you think the margins can go from? You know, where they are today? Thank you. Yeah, yeah, absolutely. Thanks, Jay for the question. Um, we absolutely believe that there's a lot of upside in DTC both from a revenue, standpoint and margin. Um, you know, as I as I commented earlier, 15 quarters of positive comp growth. So first of all, um, margin growth will come from Leverage, you know, call it sales productivity as we continue to drive higher volumes. We'll clearly leverage off of the fixed costs in our store, which includes, you know, your real estate your fixed labor or just a lot of, you know, a lot of those. Um, like I said, 6 costs, um, secondly, I would say is, you know, we are really focused on retail Excellence, um, that had a big impact in expanding our store margins. This past,

In our store, which includes, you know, your real estate your fixed labor or just a lot of, you know, a lot of those. Um, like I said fixed costs, um, secondly, I would say is, you know, we are really focused on retail Excellence, um, that had a big impact in expanding our store, margins this past year and that will continue. So we're we're stepping up our operations capabilities that includes things like enhanced lifestyle merchandising. So um when the consumer is coming in they're not just buying a pair of bottoms. They're also buying the top so driving upts, driving average, ticket price, Etc. Um improved assortment planning and life cycle management. You know, we, we talk about rewiring this company to be a retailer. And that's and that's happening. Um, we've put new systems in place where in the midst of rolling out a new planning and allocation system that's going to benefit. Um,

So first, a big shout out to the Europe team. Um, you know, they had a phenomenal year. They were up in the mid single digit, uh, the strength and Europe for the quarter was up, 10% end of the year really strong, um, and entering 26 with momentum. Uh, the strength was, you know, evident I talked about UK and Germany, me prepared, a mass being up double digits. But you think about the channels, both channels are up wholesale, actually led the way with uh 13% growth uh growth. And you look at the other markets Bob uh most markets grew in Europe uh again very strong holiday. The team in Europe, does a great job executing against the strategies, you know, women's was up. 10 men was up 9 uh, as an example and then e-commerce was up. Uh, as you know, you know, big time. So overall really strong results is translated, you know, uh, driving growth is 1 thing, but it's important.

So first, a big shout out to the Europe team. Um, you know, they had a phenomenal year. They were up in the mid single digit, uh, the strengths and Europe for the quarter was up, 10% end of the year, really strong, um, and and entering 26 with momentum. Uh, the strength was, you know, evident I talked about UK and Germany, my prepared remarks being up double digits. But you think about the channels, both channels are up wholesale, actually led the way with uh 13% growth uh growth. And you look at the other markets Bob uh most markets grew in Europe uh again very strong holiday. The team in Europe, does a great job executing against the strategies, you know, women's was up. 10 men was up 9 uh, as an example and then e-commerce was up, uh, you know, big time. So, overall really strong results, it translated.

Really excited about this because we think this presents a new business for us. Um, the premium category is largely untapped for us, it's sizable, it's growing. And we're significantly underpenetrated. So you know, early signs for Blue Table are very positive. We just rolled it out early early in 2025 and it is the Pinnacle expression of our brand very elevated. You know, commanding price points for bottoms for 200 to 350 truckers, 250 400 is a list goes on. Um, and we're early in the early stages. We're testing, we're learning, we're scaling. Um but it is showing that the consumer is responding and that we have permission to play in this elevated premium market. And you know we have we've also had green shoots through the collaborations that we've done for a long time which have commanded you know those really elevated price points but now we're really going to lean in. It isn't going to be you know these In-N-Out collaborations. We see it as an ongoing business that

Okay. And, uh, on Blue Tab, uh, do you want to—yeah, no, happy, happy to talk. So Blue Tab is clearly a global opportunity for us. So yes, in Europe, but, um, across the globe, and we're really excited about this because we think this presents a new business for us. Um, the premium category is largely untapped for us—it's sizable, it's growing, and we're significantly underpenetrated. So, you know, early signs for Blue Tab are very positive. We just rolled it out early, early in 2025, and it is the pinnacle expression of our brand, very elevated—you know, commanding price points for bottoms from $200 to $350, truckers $250 to $400, the list goes on. Um, and we're early in the early stages. We're testing, we're learning, we're scaling. Um, but it is showing that the consumer is responding and that we have permission to play in this elevated, premium market. And, you know, we have—we've also had green shoots through the collaboration.

Thank you. So, um, why don't why don't harm me? And I both take this 1. Let me talk about kind of end-to-end supply chain, as it relates to product development, and I think Hermie can speak to our distribution transformation. So, um, yeah, as you know, we've been on this journey as we pivot to become a DTC retailer to shorten our timeline Drive Global consistency, Etc. And um we're making good progress. We've taken a few months out of our end-to-end lead time. So we've shortened that from, you know, what was 1617 months down to 14 months we're now focused on creating different Tracks Of Products. So for example in tots um, we're going after shorter cycle times, looking at vendors who are closer to the point of distribution Etc. We have a new head of supply chain. Chris callierey, who comes with deep experience in vertical.

Is driving greater Global consistency. So, um, what used to be? Uh, we we'd always developed our products here in San Francisco, um, but it was more of kind of a Bottoms Up approach. Now, what we've seen is really more of a taught as a tops down, but having a global directive line. So for perspective, back in like 23 early, 24, um, our globally directed line was about 20%. We're now 50%, um, on our way to 707% and with that, you clearly drive a lot of efficiency to over time, you'll see that show up in, you know, in inventory, turn and sell through and productivity. Um, and also it allows us to really get behind those big bets from a marketing standpoint and leverage our resources. Um, so the second and then the third piece somewhat related is we continue to be really focused on reducing our, our ski count. Um, and

Harmit Singh: Yeah. And on the, Gabriella, to the question on distribution, just by context, you know, two years ago, we began remapping both US and distribution network to a more hybrid, automated, omni-channel model, largely done with the intent to support our long-term growth and ensure we meet growing consumer demand. Europe, as I mentioned in the, in my script, is fully transitioned, and we're seeing clear top line and bottom-line opportunities. In the US, the ramp-up has taken a little longer than we expected, and so we supplemented this by ensuring that one of our own facilities stayed open a little longer, as well as increase the manual operations. Because, to be honest, the demand outstripped our expectations, given the wonderful product that we have and, you know, we have introduced in the marketplace.

We are, we are still ranging in the reduction of about 20 25% again. Um, all of these things will help enable margin accretion over time. Yeah, and on the, uh, Gabriel to the question on distribution, uh, just by context, um, you know, 2 years ago, we began remapping, both us, and distribution Network to a more hybrid automated Omni Channel model. Largely done with the intent to support a long-term growth and ensure we meet going consumer demand, uh, Europe as I mentioned in the, in the uh, in my script is fully transitioned and we're seeing clear Top, Line and bottom line opportunities in the US, the ramp up is taken a little longer than we expected. And so we supplemented this by ensuring that 1 of our own facilities. Stayed open a little longer as well as increase the manual operations because to be honest, the demand outstripped, our expectations given

Script is fully transition and we've seen clear Top Line and bottom line opportunities in the US. The ramp up is taken a little longer than we expected. And so we supplemented this by ensuring that 1 of our own facilities. Stayed open a little longer as well as increase the manual operations because to be honest, the demand outstripped, our expectations, given the wonderful product that we have. And, you know, we have introduced in the marketplace, uh, we brought in distribution experts, um, in to our organization, helping us complete the transformation, we're working with our third party, uh, leading logistic Partners to, uh, you know, and so we are confident of completing this by the end of the year. And as you saw from the Euro, uh, numbers, you know, when it is complete, it does make a big difference to Top Line and bottom line.

Yeah, sure. Uh, uh, thanks for asking the question. What gives us confidence? Uh, is a couple of things 1. We've got a great team on our side and a great team with our third party, logistic Partners, working together to try and solve it and do it in a way that we are able to meet consumer demand while setting ourselves for the long term. So that's a fact. Number 1, fact. Number 2 is, you know, I mean, this is a daily. If not a weekly discussion, and Michelle and I, and the top teams, um, you know, management teams on the other side are directly in conversations. Uh, and and, and the other only proof point I would have us there is we've seen it happen in Europe. There's no reason why it shouldn't happen uh, in the US. So that's that's, uh, you know, addressing your question to the, uh, question on sgna. You know, our focus on hna, uh, has has

Yeah, sure. Uh, uh, thanks for asking the question. What gives us confidence? Uh, is a couple of things 1. We've got a great team on our side and a great team with our third party, logistic Partners, working together to try and solve it and do it in a way that we are able to meet consumer demand and while setting us up for the long term. So that's a fact. Number 1, fact, number 2 is, you know, I mean, this is a daily. If not a weekly discussion and Michelle and I, and the top teams, um, you know, management teams on the other side are directly in conversations. Uh, and and and the other only proof point I would have their is we've seen it happen in Europe. There's no reason why it shouldn't happen uh, in the US. So that's that's, uh, you know, addressing your question to the, uh, question on sgna. You know, our focus on hna, uh, has has

5%, uh, organic or 5, to 6%, reported should leverage. Second is, uh, I think Jay, you asked a question about DDC productivity, uh, you know, again, a meaty to bust higher DDC doesn't mean lower ebit margin. So you think about last year, our DDC margins were up, 300 basis points. So ebit margins were up, we've got plans to grow DDC margins, even in 2020, um, in 2026. The other thing is we have limited head head, count increases. And the way we're doing it so that we manage growth with resources is really leveraged the user of AI. And we've got Global Talent Hub, which is centers around the world across all functions, where we leveraging talent and that should help us. Uh, you know, offset some of the cost increases and your question about distribution costs. We feel the, um, the parallel running of the DC that pressure eases by the first half of the year.

Um, you know what gives us confidence in 2026 is a few things 1, you know, a higher volume 4 to 5%, uh, organic or 5, to 6%, reported should leverage second is, uh, I think the J. You asked the question about DDC productivity? Uh, you know, again, a mid to bust higher DDC doesn't mean lower ebit margin. So you think about last year, our DDC margins were up, 300 basis points. So ebit margins were up, we've got plans to grow DDC margins, even in 2020, um, in 2026. The other thing is we have limited head-to-head, count increases and the way we're doing it so that we manage growth with resources is really leveraged the user of AI. And we've got Global Talent Hub, which is centers around the world across all functions, where we leveraging talent and that should help us, uh, you know, offset some of the cost increases and your question about distribution,

Michelle Gass: So you know, where it's appropriate, especially in our higher, you know, higher tiered and newness innovation, we're leveraging that pricing power, while at the same time taking more modest pricing and being very diligent on, call it, those tier three, lower priced entry-level prices. So, the teams, you know, we have more data and more sophisticated models than we've ever had, leveraging AI, as a matter of fact, so informed by market analyses, demand elasticity, and like I said, being very targeted on how we took that pricing. We took some last year, fairly modestly. We have more, and that was mostly from a to a, to the, to our customers. Now, from a consumer-facing standpoint, we do have pricing going in, both in DTC and in wholesale in February.

Sure, Paul take that 1 year, we are taking call it thoughtful, targeted pricing actions. Um, as part of our tariff mitigation and that's largely happening in the US. Although as ordinary course of business, we do take pricing Around the World As We mitigate things like inflation and the like but you know, uh, our Focus for the for the most part was here in the US, I will say, we have not seen any consumer or customer reaction to date, which I think is a testament to the strength of the business, the momentum we have, and the consumer responding to our product, our marketing efforts and I would say that, you know, we have pricing power given how strong the brand is right now, the market share gains. Um, so you know where it's appropriate, um, especially in our higher, you know, higher tiered, and newness Innovation. We're leveraging that pricing power while at the same time, taking more modest pricing and being very diligent on

I think you mentioned that us wholesale is going to go through a bit of a rash rationalization. Um, this year, can you help us understand what's what's happening there? And where the opportunity for upside is in your America's business this year? Thank you. Sure. Uh, so Brooke. Um, um, overall the US, grew the, uh, you know, in 20, uh, uh, 5 by 4% DVC, you know, was the standout, uh, you know, growing 6%, but wholesale also grew, uh, you know, in the year, I think in the quarter, uh, the, you know, us was flat. That is largely driven by, you know, as I mentioned, in the call 2 factors 1 was we were lacking, you know, a high, uh, sale in 24, a large, uh, digital, uh, uh, customers. That was just timing, uh, and the capacity constraints on the DC. And if you, if you, you know, exclude that or you

Good afternoon and thank you for taking my question, Harvey, Michelle. I was hoping we could drill down a little bit deeper into your growth assumptions for the Americas business in 20126. It sounds like you have some strong momentum in DTC. You're taking a little bit of price, you sound pretty positive on units, but the growth would suggest that things are a little bit more challenged there. I think you mentioned that us wholesale is going to go through a bit of a rash rationalization. Um, this year, can you help us understand what's what's happening there? And we are the opportunity for upside is in your America's business this year. Thank you. Good. Uh, so Brooke. Um, uh, overall the US grew the uh, you know, in 20, uh, uh, 5 by 4 percent DDC, you know, was the standout uh, you know, growing 6% per wholesale. Also grew uh, you know in the year, I think in the quarter, uh the, you know, us was flat that was largely.

Michelle Gass: As it relates to our core strategies, I think the partnerships are really strong. These accounts are embracing denim lifestyle, tops, men's, and women's. I mean, really, Levi's getting into the tops category in wholesale in a meaningful way is a new step forward for us. Women's, our accounts have really embraced our women's strategy, and you'll see that in key accounts where they've expanded the footprint. In some cases, we've expanded doors. And then this head-to-toe denim lifestyle, getting into new categories like skirts, dresses, et cetera. So we really do see it as a complement, and I think one of the really great things is that in DTC, we can launch products first, and they get to see the results, and then we can take them to wholesale. And we've seen that model play out.

As it relates to our core strategies, I think the partnerships are really strong. These accounts are embracing denim lifestyle, tops, men's, and women's. I mean, really, Levi's getting into the tops category in wholesale in a meaningful way is a new step forward for us. Women's, our accounts have really embraced our women's strategy, and you'll see that in key accounts where they've expanded the footprint. In some cases, we've expanded doors. And then this head-to-toe denim lifestyle, getting into new categories like skirts, dresses, et cetera. So we really do see it as a complement, and I think one of the really great things is that in DTC, we can launch products first, and they get to see the results, and then we can take them to wholesale. And we've seen that model play out.

Again, we're, we're we're driving to Flat even despite, um, some of these account decisions as it relates to our core strategic. Um, I think the Partnerships are really strong. Um, these accounts are embracing denim lifestyle, uh, tops men and women, I mean, really Levi, getting into the tops category in Wholesale in a meaningful way, is, is a new step forward for us. Um, women's are accounts have really embraced our women's strategy and you'll see that um, in key accounts where they've expanded the footprint, um, in some cases, we've expanded doors and then this head to toe denim lifestyle getting into new categories like skirts dresses Etc. So we we really do see it as a compliment and I think 1 of the the really great things is that in DTC we can launch products first and they get to see the results and then we can take them to wholesale and we've seen that model. Play out 1 of our big hits of the year was the Cinch baggie and that took off both in DTC and in wholesale.

Brand. And again, we're we're, we're, we're driving to Flat even despite, um, some of these account decisions as it relates to our core strategic, um, I think the Partnerships are really strong. Um, these accounts are embracing denim lifestyle, uh, tops men's. And women's, I mean, really Levy is getting into the tops category, in wholesale and a meaningful way, is, is a new step forward for us. Um, women's are accounts of really embraced our women's strategy and you'll see that, um, in key accounts where they've expanded the footprint, um, in some cases, we've expanded doors and then this head to toe denim lifestyle getting into new categories like skirts dresses Etc. So we we really do see it as a compliment and I think 1 of the the really great things is that in DTC we can launch products first and they get to see the results and then we can take them to home.

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Q4 2025 Levi Strauss & Co Earnings Call

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