• DTC (Direct-to-Consumer) net revenues increased 10% on a reported basis and 12% on a constant-currency basis. DTC growth reflected a 12% increase in the U.S. and a 9% increase in Europe.
• Wholesale net revenues decreased 6% on a reported basis and 5% on a constant-currency basis. Adjusting for the exit of the Denizen business, wholesale net revenues declined 3%.
• Operating margin was 2.0% compared to 2.3% in the same quarter last year inclusive of an impairment charge of $111 million related to the Beyond Yoga acquisition.
• Gross margin increased 440 basis points to 60% from 55.6% in the same quarter last year primarily driven by lower product costs and favorable channel and brand mix.

“The underlying fundamentals of our business are getting stronger, driven by the Levi’s® brand, which grew 5% globally in Q3, a significant acceleration from H1 and the highest revenue growth in two years. We are making progress against our strategic priorities, including double-digit growth in our direct-to-consumer business, continued positive performance in the U.S., and Europe inflecting to growth,” said Michelle Gass, CEO of Levi Strauss & Co.