Laurent Vasilescu's questions to LEVI STRAUSS & (LEVI) leadership • Q3 2025
Question
Laurent Vasilescu inquired about Levi Strauss & Co.'s European market momentum, competitive promotional activity, and the outlook for European pre-books for the upcoming spring season. He also asked for a detailed breakdown of the Q4 gross margin guidance, specifically regarding the impact of the 53rd week and any positive offsets.
Answer
Harmit Singh, Chief Financial and Growth Officer, explained that Europe's Q3 growth was 3%, accelerating to double-digits post-weather impact, with strong performance in key markets like the UK, Germany, and Italy. He noted that pre-books for spring are up mid-single digits. For Q4 gross margin, Singh attributed the expected 100 basis point contraction to the 53rd week impact (20 bps) and an incremental tariff headwind (80 bps after mitigation), emphasizing that without tariffs, gross margins would have increased.