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SAN FRANCISCO--(BUSINESS WIRE)--Cotchett, Pitre & McCarthy, LLP (“CPM”) filed a class action lawsuit in the U.S. District Court for the Northern District of California, San Francisco Division, against Levi Strauss & Co. (“Levi”), on behalf of a proposed nationwide class of consumers who bought Levi products at prices the company quietly raised to cover the costs of tariffs. After the Supreme Court ruled on February 20, 2026 that those tariffs were unlawful, the federal government is now.

Levi Strauss LEVI shares have declined following a mixed fiscal Q3 report. While the company reported an adjusted EPS of $0.48, exceeding expectations, revenue grew 4% year-over-year to $1.61 billion, slightly falling short of forecasts. Notably, $0.11 of the EPS was attributed to tariff refunds, which somewhat diminishes the strength of the underlying earnings performance.

The direct-to-consumer (DTC) segment was a key disappointment, with organic growth slowing to 2% from 8% in Q2, and comparable sales remaining flat. Softer foot traffic in the U.S. and Europe negatively impacted results, in contrast to a 6% increase in wholesale sales. Management acknowledged a misalignment in its back-to-school campaign, which focused on loose-fitting denim despite a consumer shift towards low-rise styles. Adjustments in marketing and merchandising have led to a return to positive growth in U.S. DTC sales in September, with European trends also improving as temperatures dropped. Management anticipates a return to mid-single-digit global DTC growth in Q4. Margins saw significant improvement, largely due to tariff refunds. Gross margin increased by 450 basis points to 66.2%, with refunds contributing 370 basis points. Even without this benefit, gross margin still rose by 80 basis points, aided by lower product costs, although high distribution expenses continued to pose challenges. The overall business remains robust, with international revenue increasing 8% organically, driven by double-digit growth in Asia, including a 13% rise in China. Sales of tops also grew by 7%, supporting Levi's strategy to diversify beyond denim bottoms and enhance its lifestyle brand. The slowdown in DTC is significant, as this channel is crucial for Levi's strategy to achieve higher margins and consistent growth. Although the company raised its FY26 adjusted EPS guidance to $1.54-1.56 from $1.46-1.52, much of this increase is attributed to the tariff benefit rather than an enhancement in underlying earnings expectations. Nevertheless, the strength in wholesale and international markets indicates that the challenges are more execution-related than a reflection of overall demand. With DTC trends improving in September, the focus now shifts to whether Levi's can maintain this momentum through fiscal Q4 and into the holiday shopping season.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

On this episode of Stock Movers: - PepsiCo (PEP) shares are lower after the company decreased its profit outlook, with its recovery in North America taking longer than expected. PepsiCo faces higher costs in North America that are weighing on margins, and will be raising some prices in the coming months after cutting prices on some marquee brands earlier this year.

Levi Strauss & Co. (NYSE:LEVI – Get Free Report) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 1.540-1.560 for the period, compared to the consensus estimate of 1.540. The company issued revenue guidance of $6.7 billion-$6.7 billion, compared to the consensus revenue estimate of $6.8 billion.

Levi Strauss & Co. Stock Performance NYSE:LEVI opened at $19.48 on Thursday. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.98 and a current ratio of 1.60. Levi Strauss & Co. has a fifty-two week low of $17.72 and a fifty-two week high of $25.70. The firm has a market cap of $7.50 billion, a PE ratio of 12.03, a price-to-earnings-growth ratio of 1.35 and a beta of 1.32. The business has a 50 day moving average price of $21.30 and a 200-day moving average price of $22.14.

Levi Strauss & Co. (NYSE:LEVI – Get Free Report) last issued its earnings results on Wednesday, October 7th. The blue-jean maker reported $0.48 EPS for the quarter, topping the consensus estimate of $0.36 by $0.12. Levi Strauss & Co. had a net margin of 9.66% and a return on equity of 25.79%. The company had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.62 billion. During the same period in the previous year, the firm earned $0.34 earnings per share. The firm’s revenue for the quarter was up 4.3% on a year-over-year basis. Levi Strauss & Co. has set its FY 2026 guidance at 1.540-1.560 EPS. Equities research analysts predict that Levi Strauss & Co. will post 1.54 earnings per share for the current year.

Levi Strauss & Co. Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 4th. Investors of record on Wednesday, October 21st will be paid a $0.16 dividend. The ex-dividend date of this dividend is Wednesday, October 21st. This represents a $0.64 annualized dividend and a dividend yield of 3.3%. Levi Strauss & Co.’s dividend payout ratio (DPR) is presently 39.51%. Analysts Set New Price Targets A number of brokerages have recently weighed in on LEVI. Bank of America reiterated a “buy” rating on shares of Levi Strauss & Co. in a research report on Thursday. BTIG Research reissued a “buy” rating on shares of Levi Strauss & Co. in a research report on Thursday. Weiss Ratings restated a “buy (b-)” rating on shares of Levi Strauss & Co. in a report on Monday, August 3rd. Wells Fargo & Company reaffirmed an “equal weight” rating and issued a $25.00 target price on shares of Levi Strauss & Co. in a research report on Tuesday, July 28th. Finally, Needham & Company LLC reissued a “buy” rating and set a $28.00 price target on shares of Levi Strauss & Co. in a research report on Thursday, July 9th. Eleven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $26.83.

Get Our Latest Stock Analysis on LEVI

Insider Transactions at Levi Strauss & Co. In other Levi Strauss & Co. news, EVP Harmit Singh sold 98,144 shares of the company’s stock in a transaction dated Thursday, July 23rd. The shares were sold at an average price of $24.22, for a total transaction of $2,377,047.68. Following the transaction, the executive vice president owned 98,747 shares in the company, valued at approximately $2,391,652.34. This represents a 49.85% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.08% of the company’s stock.

More Levi Strauss & Co. News Here are the key news stories impacting Levi Strauss & Co. this week:

Positive Sentiment: Levi Strauss reported third-quarter adjusted EPS of $0.48, well above the $0.36 analyst consensus and up from $0.34 a year earlier. Stronger margins, international growth, wholesale performance and momentum in lifestyle categories supported profitability. Levi Strauss beats third-quarter profit estimates as margins widen Positive Sentiment: The company raised fiscal 2026 adjusted EPS guidance to $1.54-$1.56 from $1.46-$1.52, benefiting partly from tariff refunds. Levi Strauss expects to redeploy approximately $60 million of the refunds into the business, including growth initiatives. Levi Strauss Raises Earnings Outlook, Boosted by Tariff Refunds Positive Sentiment: Levi Strauss declared a quarterly dividend of $0.16 per share, equivalent to $0.64 annually and a yield of approximately 3.3%. The dividend is payable November 4 to shareholders of record October 21. Neutral Sentiment: Management expects roughly 4% organic revenue growth in the fourth quarter and is investing in its direct-to-consumer business, including a new AI shopping assistant intended to improve online engagement and sales. Levi’s Got $80 Million in Trump Tariff Refunds Negative Sentiment: Third-quarter revenue of $1.61 billion narrowly missed the $1.62 billion consensus, while revenue growth of 4.3% was driven partly by tariff benefits. Direct-to-consumer revenue increased only 2%, with continued pressure in the U.S. Levi Strauss hikes profit guidance after tariff refunds, but its sales outlook is less optimistic Negative Sentiment: Fiscal 2026 revenue guidance is approximately $6.7 billion, below the $6.8 billion analyst estimate, and management moved expected revenue growth toward the low end of its prior range. This sales concern appears to be outweighing the EPS beat and higher profit guidance. (Get Free Report)

Levi Strauss & Co is an apparel company best known for its Levi’s brand of denim jeans and related clothing. Its product portfolio includes jeans, tops, bottoms, jackets, footwear, accessories and other casualwear for men, women and children.

Founded in 1853 and headquartered in San Francisco, California, the company also owns the Dockers, Beyond Yoga and Signature by Levi Strauss & Co brands. Levi Strauss & Co sells its products through company-operated stores, e-commerce platforms, wholesale partners and other distribution channels.

The company serves customers in North America, Europe, Asia and other international markets.

Recommended Stories Five stocks we like better than Levi Strauss & Co. Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up Receive News & Ratings for Levi Strauss & Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Levi Strauss & Co. and related companies with MarketBeat.com's FREE daily email newsletter.

Levi Strauss & Co. (NYSE:LEVI) posted mixed third-quarter fiscal 2026 results after Wednesday’s closing bell.

Levi Strauss reported quarterly earnings of 48 cents per share, inclusive of a 16 cent impact from tariff refunds, which beat the consensus estimate of 36 cents, per Benzinga Pro data. Quarterly revenue came in at $1.61 billion, which missed the Street estimate of $1.62 billion.

Levi Strauss raised its fiscal 2026 adjusted EPS guidance to $1.54 to $1.56, versus the $1.54 analyst estimate, and narrowed its revenue outlook to $6.72 billion, versus the $6.76 billion estimate.

“Our third-quarter performance highlighted the power of our diversified portfolio and reinforced our confidence that we have the right strategies in place,” said Michelle Gass, President and CEO of Levi Strauss & Co. “We saw strong growth in our international and wholesale businesses, and continued momentum across our lifestyle categories. 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, including in the U.S. Based on the acceleration in recent trends, our DTC business is on track to deliver mid-single-digit growth in the fourth quarter.”

Levi Strauss shares fell 2.9% to $18.94 in pre-market trading.

These analysts made changes to their price targets on Levi Strauss following earnings announcement.

B of A Securities analyst Christopher Nardone maintained the stock with a Buy and lowered the price target from $27 to $25. BTIG analyst Robert Drbul reiterated the stock with a Buy and maintained a $27 price target. Needham analyst Tom Nikic reiterated the stock with a Buy and maintained a $28 price target. Considering buying LEVI stock? Here’s what analysts think:

Photo via Shutterstock

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With U.S. stock futures trading lower this morning on Thursday, some of the stocks that may grab investor focus today are as follows:

Wall Street expects Helen of Troy Ltd (NASDAQ:HELE) to post quarterly earnings at 50 cents per share on revenue of $442.33 million before the opening bell, according to data from Benzinga Pro. Helen of Troy shares gained 0.5% to $25.68 in after-hours trading. Applied Digital Corp (NASDAQ:APLD) posted better-than-expected financial results for the first quarter. Applied Digital reported first-quarter adjusted revenue of $300.39 million, beating analyst estimates of $132.16 million, according to Benzinga Pro. The digital infrastructure provider reported an adjusted loss of one cent per share for the quarter, beating estimates for a loss of 30 cents per share. Applied Digital shares jumped 4.8% to $24.94 in the after-hours trading session. Analysts are expecting PepsiCo Inc. (NASDAQ:PEP) to post quarterly earnings at $2.29 per share on revenue of $24.96 billion. The company will release earnings before the markets open. PepsiCo shares slipped 0.1% to $123.70 in after-hours trading. Check out our premarket coverage here

Levi Strauss & Co. (NYSE:LEVI) posted mixed third-quarter fiscal 2026 results after Wednesday’s closing bell. Levi Strauss reported quarterly earnings of 48 cents per share, inclusive of a 16-cent impact from tariff refunds, which beat the consensus estimate of 36 cents, per Benzinga Pro data. Quarterly revenue came in at $1.61 billion, which missed the Street estimate of $1.62 billion. Levi Strauss shares fell 1.9% to $19.15 in the after-hours trading session. Analysts expect Tilray Brands Inc. (NASDAQ:TLRY) to post a quarterly loss at 15 cents per share on revenue of $266.42 million before the opening bell. Tilray Brands shares gained 0.7% to $3.74 in after-hours trading. Photo courtesy: Shutterstock

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To add Benzinga News as your preferred source on Google, click here.

Why Levi's Digital Strategy Is Paying Off in a Big WayLevi Strauss & Co. NYSE: LEVI reported third-quarter fiscal 2026 revenue growth that was supported by international markets, wholesale and product categories beyond denim bottoms, while softer store traffic in the United States and Europe weighed on its direct-to-consumer business.

For the quarter ended Aug. 30, reported net revenue increased 4% and organic net revenue rose 5%. Year-to-date organic revenue growth was 7%, according to President and Chief Executive Officer Michelle Gass. International revenue grew 8%, global wholesale rose 6%, and categories outside Levi’s denim bottoms business generated about half of the company’s top-line growth.

Get Levi Strauss & Co. alerts:

Levi Strauss Gains as DTC Continues to Fuel Revenue Growth“The quarter again demonstrated the benefits of our diversified portfolio,” Gass said, while acknowledging that direct-to-consumer performance “fell short of our expectations during the quarter.”

Direct-to-Consumer Traffic Pressure Global direct-to-consumer revenue increased 2% during the quarter, while comparable sales were flat from a year earlier. Gass attributed the shortfall primarily to softer traffic in the U.S. and Europe.

Calvin Klein's Parent May Be the Market's Best BargainIn Europe, unusually warm weather in several key markets reduced store traffic for much of the quarter, the company said. Gass said traffic and sales improved as temperatures normalized, with the improvement continuing into the fourth quarter.

In the U.S., Gass said the company’s back-to-school campaign did not generate the traffic and demand it anticipated. The campaign emphasized loose fits, while consumer attention had shifted toward lower-rise styles, she said. Levi Strauss responded by increasing marketing behind low-rise fits, strengthening inventory positions and adjusting store merchandising and digital efforts.

The company said its U.S. direct-to-consumer business had returned to positive growth during the fourth quarter to date. Levi Strauss expects global direct-to-consumer growth of at least the mid-single digits in the fourth quarter and high-single-digit growth for the full year.

Its e-commerce channel recorded another quarter of double-digit growth. The company also recently launched an artificial-intelligence shopping assistant in the U.S., which provides styling suggestions and outfit recommendations. Gass said consumers using the tool have added items to their carts at about three times the company’s average rate, though she characterized the initiative as early stage.

International, Wholesale and Product Growth Asia remained a key growth driver, with segment revenue up 10% for the third consecutive quarter of double-digit growth. China revenue rose 13%, while growth also came from Japan, India and Australia. Levi Strauss plans nearly 60 net new system stores in Asia during the fourth quarter.

Latin America revenue increased 10%, with growth across channels and markets. The company said its direct-to-consumer businesses in both Latin America and Asia remain underpenetrated relative to the company average.

Wholesale momentum continued across regions and categories. Chief Financial and Growth Officer Harmit Singh said sell-through was healthy, with both average unit retail prices and unit sales higher. He noted that wholesale growth in the fourth quarter is expected to be lower than the third quarter due to the timing of product flows to customers, rather than weaker demand. European wholesale pre-bookings for spring/summer 2027 were up high single digits.

The Levi’s brand grew 4%, with mid-single-digit growth in both men’s and women’s. Tops increased 7%, led by a 10% rise in women’s tops. Blue Tab, the company’s premium offering, delivered double-digit growth, while Signature revenue rose 13% and Beyond Yoga revenue increased 9%.

Tariff Refunds Lift Margins, Fund Reinvestment Levi Strauss recorded approximately $80 million in tariff refunds during the third quarter, representing substantially all refunds it expects to receive. The company plans to redeploy roughly three-quarters of the benefit into marketing, supply-chain capabilities and consumer promotions.

About $25 million was redeployed in the third quarter, with another roughly $35 million expected in the fourth quarter. Singh said the company was allocating approximately one-third of the redeployed amount to marketing, one-third to distribution and logistics, and one-third to promotional activities.

Third-quarter gross margin expanded 450 basis points to 66.2%. Tariff refunds, net of redeployments, contributed 370 basis points of the improvement. Adjusted EBIT margin was 15.5%, including a 330-basis-point net benefit from tariff refunds. Adjusted diluted earnings per share were $0.48, including an $0.11 benefit from refunds net of redeployment.

Excluding tariff-related effects, Singh said gross margin improved 80 basis points, supported by lower product costs, while adjusted EBIT margin expanded 40 basis points, reflecting improving margins in Asia and wholesale growth.

The company also said distribution costs were higher than expected as it transitions its U.S. network. Levi Strauss closed its Hebron distribution center at the end of the third quarter and expects to begin realizing benefits from that closure in 2027. Management said a fire-related incident and the complexity of the network transition delayed expected savings.

Updated Outlook and CFO Transition For fiscal 2026, Levi Strauss now expects reported revenue growth of approximately 7%, compared with its previous outlook of 7% to 7.5%, reflecting a stronger U.S. dollar. Organic revenue growth is expected to be approximately 6%, at the high end of its previous expectations.

Full-year gross margin is expected to be about 63%, including roughly 80 basis points of net tariff-refund benefit. Adjusted EBIT margin is projected at approximately 12.1%, including about 30 basis points of net tariff benefit. Adjusted diluted EPS is forecast at $1.54 to $1.56, including a $0.04 net tariff-refund benefit. Fourth-quarter organic revenue growth is expected to be about 4%, while reported revenue growth is expected to be about 3% due to foreign exchange. Fourth-quarter adjusted diluted EPS is expected at $0.36 to $0.38. The company returned $62 million to shareholders through dividends during the quarter, an 11% increase from a year earlier, and said it intends to repurchase an additional $100 million in shares through an accelerated share repurchase program.

Levi Strauss also announced that John Vandemore, most recently chief financial officer of Skechers, will become its next CFO. Singh, who has been with the company for 14 years, said the call was his 56th and final earnings call with Levi Strauss.

About Levi Strauss & Co. (NYSE:LEVI)Levi Strauss & Co is an apparel company best known for its Levi's brand of denim jeans and related clothing. Its product portfolio includes jeans, tops, bottoms, jackets, footwear, accessories and other casualwear for men, women and children.

Founded in 1853 and headquartered in San Francisco, California, the company also owns the Dockers, Beyond Yoga and Signature by Levi Strauss & Co brands. Levi Strauss & Co sells its products through company-operated stores, e-commerce platforms, wholesale partners and other distribution channels.

The company serves customers in North America, Europe, Asia and other international markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Levi Strauss & Co. (LEVI) Q3 2026 Earnings Call October 7, 2026 5:00 PM EDT

Company Participants

Aida Orphan - Vice President of Investor Relations
Michelle Gass - CEO, President & Director
Harmit Singh - Executive VP & Chief Financial & Growth Officer

Conference Call Participants

Laurent Vasilescu - BNP Paribas, Research Division
Matthew Boss - JPMorgan Chase & Co, Research Division
Jay Sole - UBS Investment Bank, Research Division
Dana Telsey - Telsey Advisory Group LLC
Rakesh Patel - Raymond James & Associates, Inc., Research Division
Robert Drbul - BTIG, LLC, Research Division
Kendall Toscano - BofA Securities, Research Division
Irwin Boruchow - Wells Fargo Securities, LLC, Research Division
Brooke Roach - Goldman Sachs Group, Inc., Research Division

Presentation

Operator

Good day, ladies and gentlemen, and welcome to the Levi Strauss & Company Third Quarter Fiscal 2026 Earnings Conference Call for the period ending August 30, 2026. [Operator Instructions] 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.

Aida Orphan
Vice President of Investor Relations

Thank you for joining us on the call today to discuss the results for our third quarter of fiscal 2026. 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

SAN FRANCISCO--(BUSINESS WIRE)--Levi Strauss & Co. (NYSE: LEVI) today announced financial results for the third quarter ended August 30, 2026.

“Our third-quarter performance highlighted the power of our diversified portfolio and reinforced our confidence that we have the right strategies in place,” said Michelle Gass, President and CEO of Levi Strauss & Co. “We saw strong growth in our international and wholesale businesses, and continued momentum across our lifestyle categories. 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, including in the U.S. Based on the acceleration in recent trends, our DTC business is on track to deliver mid-single-digit growth in the fourth quarter.”

“We delivered another quarter of mid-single-digit revenue growth while navigating a dynamic operating environment,” said Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co. “We made the decision to redeploy a majority of our tariff refund benefit back into the business during Q3 and Q4 to support future growth. Reflecting confidence in our outlook, we are raising our full-year profit guidance and plan to initiate a $100 million accelerated share repurchase program.”

Financial Highlights for the Third Quarter

Net Revenues of $1.6 billion increased 4% on a reported basis and 5% on an organic basis versus Q3 2025. In the Americas, net revenues increased 4% on a reported basis and 2% on an organic basis. Within the Americas, the U.S. decreased 1% on a reported basis. In Europe, net revenues increased 4% on a reported basis and 5% on an organic basis. In Asia, net revenues increased 5% on a reported basis and 10% on an organic basis. Beyond Yoga® increased 9% on a reported and organic basis. DTC (Direct-to-Consumer) net revenues increased 2% on a reported and organic basis. DTC growth on a reported basis reflected a 2% increase in the Americas, a 1% decrease in the U.S., a 2% decrease in Europe and an 8% increase in Asia. DTC growth on an organic basis was flat in the Americas and reflected a 1% decrease in Europe and an 11% increase in Asia. Net revenues from e-commerce grew 10% on a reported and organic basis. DTC comparable sales growth was flat. DTC comprised 45% of total net revenues in the third quarter. Wholesale net revenues increased 6% on a reported and organic basis, driven by growth in all segments, with particularly strong performance in Europe and Asia. Net Revenues

Operating Income (loss)

Three Months Ended

% Increase

(Decrease)

As

Reported

% Increase

(Decrease)

Organic

Net Revenues

Three Months Ended

% Increase

(Decrease)

As

Reported

($ millions)

August 30,
2026

August 31,
2025

August 30,
2026

August 31,
2025

Americas

$

839

$

806

4

%

2

%

$

251

$

189

32

%

Europe

$

442

$

426

4

%

5

%

$

101

$

91

11

%

Asia

$

293

$

278

5

%

10

%

$

42

$

33

25

%

Beyond Yoga®

$

36

$

33

9

%

9

%

$

(5

)

$

(5

)

(10

)%

___________

Operating margin was 13.8% in Q3 2026 compared to 10.8% in Q3 2025. Adjusted EBIT margin was 15.5% in Q3 2026 compared to 11.8% in Q3 2025. The impact of tariff refunds contributed 490 basis points(1) of margin expansion, of which approximately 160 basis points(2) were redeployed to support the business. The tariff refund benefit, net of redeployment, was 330 basis points. Gross margin expanded 450 basis points to 66.2% compared to 61.7% in Q3 2025. The impact of tariff refunds contributed 490 basis points(1) of gross margin expansion, of which approximately 120 basis points(2) were redeployed to support the business. The tariff refund benefit, net of redeployment, was 370 basis points. Selling, general and administrative expenses (SG&A) were $836 million compared to $776 million in Q3 2025. Adjusted SG&A was up 6.2% to $817 million compared to $769 million last year. Includes approximately 40 basis points(2) of costs redeployed to support the business. The remaining increase was driven primarily by selling and distribution expenses. Interest and other income (expense), net, which includes foreign exchange gains and losses, were expenses of $2 million(1) in Q3 2026 and expenses of $11 million in the aggregate in Q3 2025. The effective income tax rate was 23.4%, compared to 21.9% in Q3 2025. Net income from continuing operations was $169 million compared to $122 million in Q3 2025. Adjusted net income was $189 million compared to $136 million in Q3 2025. Diluted earnings per share from continuing operations was $0.43 compared to $0.31 in Q3 2025. Adjusted diluted earnings per share was $0.48 compared to $0.34 in Q3 2025. The impact of tariff refunds contributed $0.16(1) of EPS benefit, of which approximately $0.05(2) was redeployed to support the business. The tariff refund benefit, net of redeployment, was $0.11. Highlights include:

Three Months Ended

% Increase

As

Reported

% Increase

Organic

Net Revenues

Nine Months Ended

% Increase

As

Reported

% Increase

Organic

Net Revenues

($ millions)

August 30,
2026

August 31,
2025

August 30,
2026

August 31,
2025

Net revenues

$

1,610

$

1,543

4

%

5

%

$

4,914

$

4,516

9

%

7

%

DTC Comparable Sales Growth

0.4

%

+

*

*

*

*

*

*

Three Months Ended

% Increase

As

Reported

% Increase

(Decrease)

Constant

Currency

Nine Months Ended

% Increase

As

Reported

% Increase

(Decrease)

Constant

Currency

($ millions, except per-share amounts)

August 30,
2026

August 31,
2025

August 30,
2026

August 31,
2025

Net income from continuing operations

$

169

$

122

39

%

*

$

441

$

342

29

%

*

Adjusted net income

$

189

$

136

39

%

41

%

$

465

$

374

24

%

22

%

Adjusted EBIT

$

249

$

182

36

%

38

%

$

608

$

506

20

%

15

%

Diluted earnings per share from continuing operations

$

0.43

$

0.31

12

¢

*

$

1.12

$

0.86

26

¢

*

Adjusted diluted earnings per share

$

0.48

$

0.34

14

¢

15

¢

$

1.19

$

0.94

25

¢

24

¢

Additional information regarding DTC Comparable sales growth, a key metric, is provided at the end of this press release.

Additional information regarding Adjusted SG&A, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, Adjusted diluted earnings per share, Adjusted free cash flow, as well as amounts presented on an organic net revenues basis and constant currency basis, all of which are non-GAAP financial measures, is provided at the end of this press release.

Balance Sheet Review as of August 30, 2026

Cash and cash equivalents were $641 million, while total liquidity was approximately $1.5 billion. Total inventories decreased 3% on a dollar basis compared to Q3 2025. Shareholder Returns

In the third quarter, the company returned $61.6 million in the form of dividends to shareholders, an 11% increase over prior year, representing a dividend of $0.16 per share. The $200 million accelerated share repurchase (ASR) program launched in the first quarter of 2026 settled in the third quarter and the company took delivery of and retired approximately 1.6 million shares for a total of 9.4 million shares over the entirety of the ASR program.

As of August 30, 2026, the company had $240 million remaining under its current share repurchase authorization, which has no expiration date. In line with the company’s capital allocation strategy, the company intends to enter into an ASR agreement to repurchase $100 million of its Class A common stock.

The company declared a dividend of $0.16 per share, a 14% increase over prior year, totaling approximately $61 million, payable in cash on November 4, 2026 to the holders of record of Class A common stock and Class B common stock at the close of business on October 21, 2026.

Fiscal 2026 Guidance

Guidance for 2026 is based on continuing operations, reflecting the Dockers® business being reported in discontinued operations. Guidance includes the impact of IEEPA tariff refunds of which the company is redeploying approximately $60 million for the full year, including approximately $35 million for the fourth quarter. This assumes current tariff rates remain in effect for the remainder of the year.

The following guidance is provided for the year ending November 29, 2026:

Metric

Updated FY 2026 Guidance

Previous FY 2026 Guidance

Reported net revenues growth

Approximately 7.0%, due to the impact of foreign exchange

7.0% to 7.5%

Organic net revenues growth

Approximately 6.0%

5.5% to 6.0%

Gross margin

Raised to up 130 basis points to prior year

Up 10 basis points to prior year

Adjusted EBIT margin

Expanding to approximately 12.1%, up 70 basis points to prior year

Expanding to 12%, up 60 basis points to prior year

Tax rate

Approximately 23%, 2 points higher than prior year

Approximately 23%, 2 points higher than prior year

Adjusted diluted EPS

Raised to $1.54 to $1.56

This includes an approximate $0.04 headwind from a higher tax rate

$1.46 to $1.52

This includes an approximate $0.04 headwind from a higher tax rate

This outlook also assumes no significant worsening of macro-economic pressures on the consumer, inflationary pressures, supply chain disruptions, potential tariffs or currency fluctuations. A reconciliation of non-GAAP forward looking information to the corresponding GAAP measures cannot be provided without unreasonable efforts due to the challenge in quantifying various items including but not limited to, the effects of foreign currency fluctuations, taxes, potential tariffs and refunds, and any future restructuring, restructuring-related, severance and other charges.

Investor Conference Call

To access the conference call, please pre-register on https://register-conf.media-server.com/register/BI30f6874931434e4392e349b637a9cb4c and you will receive confirmation with dial-in details. A live webcast of the event can be accessed on https://edge.media-server.com/mmc/p/hoe63w58.

A replay of the webcast will be available on http://investors.levistrauss.com starting approximately two hours after the event and archived on the site for one quarter.

About Levi Strauss & Co.

Levi Strauss & Co. (LS&Co.) is one of the world's largest brand-name apparel companies and a global leader in jeanswear. The company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's®, Levi Strauss Signature™, and Beyond Yoga® brands. Its products are sold in approximately 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,300 retail stores and shop-in-shops. Levi Strauss & Co.'s reported 2025 net revenues were $6.3 billion. For more information, go to http://levistrauss.com, and for financial news and announcements go to http://investors.levistrauss.com.

Forward-Looking Statements

This press release and related conference call contains, in addition to historical information, forward-looking statements, including statements related to: future financial results, including the company’s expectations for the full fiscal year 2026 net revenues (both reported and on an organic net revenues basis), gross margin, adjusted EBIT margins, adjusted SG&A, adjusted diluted earnings per share and effective tax rate; business and market outlook; consumer preferences; progress against strategic priorities; the ongoing restructuring of our operations and our ability to achieve any anticipated cost savings associated with such restructuring; trajectory of direct-to-consumer business; macroeconomic conditions, including impacts of and uncertainties around U.S. tariffs and potential refunds and any additional retaliatory measures by impacted exporting countries; impacts of foreign currency exchange; capital expenditures; pricing initiatives; inventory growth; new store openings; investments in high growth initiatives; future dividend payments and share repurchases; and efforts to diversify product categories and distribution channels, and the related revenue projections. The company has based these forward-looking statements on its current reasonable assumptions, expectations and projections about future events. Words such as, but not limited to, “believe,” “will,” “may,” “so we can,” “when,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “could” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessary estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties, some of which are beyond our control, that could cause actual results to differ materially from those suggested by the forward-looking statements. Investors should consider the information contained in the company's filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for fiscal 2025, especially in the “Management's Discussion and Analysis of Financial Condition and Results of Operations”, “Summary of Risk Factors” and “Risk Factors” sections, and its Quarterly Report on Form 10-Q for the quarter ended August 30, 2026, especially in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, section. Other unknown or unpredictable factors also could have material adverse effects on future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release and related conference call may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if no date is stated, as of the date of this press release and related conference call. The company is not under any obligation and does not intend to update or revise any of the forward-looking statements contained in this press release and related conference call to reflect circumstances existing after the date of this press release and related conference call or to reflect the occurrence of future events, even if such circumstances or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

Key Metrics

DTC Comparable sales growth is used by management to evaluate the performance of our existing Levi’s® brand company owned and operated mainline and outlet store base and owned digital channels by measuring year‑over‑year changes in net revenues for stores open for at least 12 full fiscal months, excluding the effects of changes in our store portfolio and other events that materially affect comparability such as significant relocations, or expansions and remodels. In fiscal years with 53 weeks, the impact of the additional week is excluded, and prior‑year periods are adjusted as necessary to align comparable weeks. DTC Comparable sales growth is presented on a constant currency basis and is intended as a supplemental operating metric, which may not be comparable to similarly titled measures used by other companies.

Non-GAAP Financial Measures

The company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP) and the rules of the SEC. To supplement its financial statements prepared and presented in accordance with GAAP, the company uses certain non-GAAP financial measures, such as Adjusted SG&A, Adjusted SG&A margin, Adjusted EBIT (both reported and on a constant-currency basis), Adjusted EBIT margin (both reported and on a constant-currency basis), Adjusted EBITDA, Adjusted net income (both reported and on a constant-currency basis), Adjusted diluted earnings per share (both reported and on a constant-currency basis), organic net revenues, Adjusted free cash flow, and return on invested capital to provide investors with additional useful information about its financial performance, to enhance the overall understanding of its past performance and future prospects and to allow for greater transparency with respect to important metrics used by management for financial and operating decision-making. The company presents these non-GAAP financial measures to assist investors in seeing its financial performance from management's view and because it believes they provide an additional tool for investors to use in computing the company's core financial performance over multiple periods with other companies in its industry. The tables found below present Adjusted SG&A, Adjusted SG&A margin, Adjusted EBIT (both reported and on a constant-currency basis), Adjusted EBIT margin (both reported and on a constant-currency basis), Adjusted EBITDA, Adjusted net income (both reported and on a constant-currency basis), Adjusted diluted earnings per share (both reported and on a constant-currency basis), organic net revenues, Adjusted free cash flow, and return on invested capital and corresponding reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Certain items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company’s financial position, results of operations and cash flows and should therefore be considered in assessing the company’s actual financial condition and performance. Non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgment by management in determining how they are formulated. Some specific limitations include but are not limited to, the fact that such non-GAAP financial measures: (a) do not reflect cash outlays for capital expenditures, contractual commitments or liabilities including pension obligations, post-retirement health benefit obligations and income tax liabilities; (b) do not reflect changes in, or cash requirements for, working capital requirements; and (c) do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on indebtedness. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. The company urges investors to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate its business. See “RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES” below for reconciliation to the most comparable GAAP financial measures. A reconciliation of non-GAAP forward-looking information to the corresponding GAAP measures cannot be provided without unreasonable efforts due to the challenge in quantifying various items including but not limited to, the effects of foreign currency fluctuations, taxes, and any future restructuring, restructuring-related, severance and other charges.

Organic Net Revenues and Constant-Currency

The company reports net revenues in accordance with GAAP, as well as on an organic net revenues basis in order to facilitate period-to-period comparisons of our revenues which excludes the impact of fluctuating foreign currency exchange rates from the change in reported net revenues, net revenues derived from business acquisitions, divestitures or wind downs impacting the comparable reporting date and the estimated impact of any 53rd week. The company reports certain operating results in accordance with GAAP, as well as on a constant-currency basis in order to facilitate period-to-period comparisons of its results without regard to the impact of fluctuating foreign currency exchange rates. These measures exclude the results of our Dockers® business, which is classified as discontinued operations.

The term foreign currency exchange rates refers to the exchange rates used to translate the company's operating results for all countries where the functional currency is not the U.S. Dollar into U.S. Dollars. Because the company is a global company, foreign currency exchange rates used for translation may have a significant effect on its reported results. In general, the company's financial results are affected positively by a weaker U.S. Dollar and are affected negatively by a stronger U.S. Dollar as compared to the foreign currencies in which it conducts its business. References to operating results on a constant-currency basis mean operating results without the impact of foreign currency translation fluctuations.

The company calculates constant-currency amounts by translating local currency amounts in the prior-year period at actual foreign currency exchange rates for the current period. Constant-currency results do not eliminate the transaction currency impact, which primarily includes the realized and unrealized gains and losses recognized from the measurement and remeasurement of purchases and sales of products in a currency other than the functional currency and of forward foreign exchange contracts.

The company believes disclosure of organic net revenues and Adjusted EBIT constant-currency, Adjusted EBIT Margin constant-currency and Adjusted Net Income constant-currency results is helpful to investors because it facilitates period-to-period comparisons of its results by increasing the transparency of the underlying performance by excluding the impact of fluctuating foreign currency exchange rates. However, organic net revenues and constant-currency results are non-GAAP financial measures and are not meant to be considered in isolation or as a substitute for comparable measures prepared in accordance with GAAP. Organic net revenues and constant-currency results have no standardized meaning prescribed by GAAP, are not prepared under any comprehensive set of accounting rules or principles and should be read in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Organic net revenues and constant-currency results have limitations in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.

Source: Levi Strauss & Co. Investor Relations

  LEVI STRAUSS & CO. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

  (Unaudited)

August 30,
2026

November 30,
2025

(Dollars in millions)

ASSETS

Current Assets:

Cash and cash equivalents

$

641.4

$

757.9

Short-term investments in marketable securities

137.9

90.9

Trade receivables, net

745.2

774.7

Inventories

1,253.6

1,237.7

Other current assets

463.7

238.5

Current assets held for sale

—

54.0

Total current assets

3,241.8

3,153.7

Property, plant and equipment, net

655.8

681.8

Goodwill

285.0

280.6

Other intangible assets, net

192.9

194.4

Deferred tax assets, net

834.6

830.1

Operating lease right-of-use assets, net

1,173.4

1,148.2

Other non-current assets

545.6

538.7

Non-current assets held for sale

—

21.3

Total assets

$

6,929.1

$

6,848.8

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Accounts payable

$

684.8

$

597.6

Accrued salaries, wages and employee benefits

228.7

244.7

Accrued sales returns and allowances

216.7

226.1

Short-term operating lease liabilities

275.8

260.7

Other accrued liabilities

585.0

703.4

Total current liabilities

1,991.0

2,032.5

Long-term debt

1,043.6

1,039.2

Long-term operating lease liabilities

1,011.1

1,005.6

Long-term employee related benefits

243.3

252.7

Other long-term liabilities

225.1

240.2

Total liabilities

4,514.1

4,570.2

Commitments and contingencies

Stockholders’ Equity:

Common stock — $0.001 par value; 1,200,000,000 Class A shares authorized, 99,254,572 shares and 103,620,225 shares issued and outstanding as of August 30, 2026 and November 30, 2025, respectively; and 422,000,000 Class B shares authorized, 284,215,167 shares and 286,756,831 shares issued and outstanding, as of August 30, 2026 and November 30, 2025, respectively

0.4

0.4

Additional paid-in capital

811.8

788.1

Retained earnings

1,964.2

1,897.3

Accumulated other comprehensive loss

(361.4

)

(407.2

)

Total stockholders’ equity

2,415.0

2,278.6

Total liabilities and stockholders’ equity

$

6,929.1

$

6,848.8

  The notes accompanying our consolidated financial statements in our Form 10-Q for the third quarter of fiscal 2026 are an integral part of these consolidated financial statements.

  LEVI STRAUSS & CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

  Three Months Ended

Nine Months Ended

August 30,
2026

August 31,
2025

August 30,
2026

August 31,
2025

(Dollars in millions, except per share amounts)

(Unaudited)

Net revenues

$

1,609.7

$

1,543.4

$

4,914.2

$

4,516.2

Cost of goods sold

543.9

591.8

1,791.0

1,711.2

Gross profit

1,065.8

951.6

3,123.2

2,805.0

Selling, general and administrative expenses

835.9

775.6

2,551.0

2,315.9

Restructuring charges, net

7.6

8.6

29.0

22.1

Operating income

222.3

167.4

543.2

467.0

Interest expense

(12.9

)

(12.5

)

(38.9

)

(35.2

)

Other income (expense), net

10.7

1.3

66.2

3.5

Income from continuing operations before income taxes

220.1

156.2

570.5

435.3

Income tax expense

51.5

34.2

130.0

93.5

Net income from continuing operations

168.6

122.0

440.5

341.8

Net income (loss) from discontinued operations, net of taxes

—

96.1

(8.8

)

78.3

Net income

$

168.6

$

218.1

$

431.7

$

420.1

Earnings (loss) per common share:

Continuing operations - Basic

$

0.44

$

0.31

$

1.13

$

0.87

Discontinued operations - Basic

—

0.24

(0.02

)

0.19

Net income - Basic

$

0.44

$

0.55

$

1.11

$

1.06

Continuing operations - Diluted

$

0.43

$

0.31

$

1.12

$

0.86

Discontinued operations - Diluted

—

0.24

(0.02

)

0.19

Net income - Diluted

$

0.43

$

0.55

$

1.10

$

1.05

Weighted-average common shares outstanding:

Basic

386,075,414

395,659,040

387,596,613

396,578,375

Diluted

390,620,582

399,529,649

392,098,306

400,401,333

  The notes accompanying our consolidated financial statements in our Form 10-Q for the third quarter of fiscal 2026 are an integral part of these consolidated financial statements.

  LEVI STRAUSS & CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

  Nine Months Ended

August 30,
2026

August 31,
2025

(Dollars in millions)

(Unaudited)

Cash Flows from Operating Activities:

Net income

$

431.7

$

420.1

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

167.6

151.4

Property, plant, equipment impairment, and early lease terminations, net

6.7

15.6

Gain on sale of business, prior to costs to sell

(33.6

)

(155.6

)

Stock-based compensation

58.8

67.8

Deferred income taxes

9.7

8.2

Other, net

(7.0

)

(19.6

)

Net change in operating assets and liabilities

(48.7

)

(225.1

)

Net cash provided by operating activities

585.2

262.8

Cash Flows from Investing Activities:

Proceeds from sale of business

96.3

194.7

Purchases of property, plant and equipment

(157.9

)

(170.3

)

Net proceeds from sales of assets

—

22.4

(Payments) proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting, net

(179.7

)

37.1

Payments to acquire short-term investments

(130.3

)

(109.8

)

Proceeds from sale, maturity and collection of short-term investments

84.4

16.2

Other investing activities, net

(7.4

)

—

Net cash used for investing activities

(294.6

)

(9.7

)

Cash Flows from Financing Activities:

Proceeds from issuance of long-term debt, net of issuance costs

—

543.8

Repayments of long-term debt

—

(550.4

)

Accelerated share repurchase, including excise tax

(201.0

)

(120.0

)

Repurchase of common stock

—

(30.5

)

Tax withholdings on equity awards

(34.5

)

(20.9

)

Dividends to stockholders

(169.3

)

(158.2

)

Other financing activities, net

(0.8

)

(0.9

)

Net cash used for financing activities

(405.6

)

(337.1

)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(1.5

)

6.8

Net increase (decrease) in cash and cash equivalents and restricted cash

(116.5

)

(77.2

)

Beginning cash and cash equivalents

757.9

690.0

Ending cash and cash equivalents

$

641.4

$

612.8

Noncash Investing Activity:

Property, plant and equipment acquired and not yet paid at end of period

$

27.7

$

38.9

Supplemental Disclosure of Cash Flow Information:

Cash paid for income taxes during the period, net of refunds

$

142.8

$

119.0

____________________ Consolidated statements of cash flows include the cash flows from continuing and discontinued operations.

The notes accompanying our consolidated financial statements in our Form 10-Q for the third quarter of fiscal 2026 are an integral part of these consolidated financial statements.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

FOR THE THIRD QUARTER AND FISCAL YEAR 2026

The following information relates to non-GAAP financial measures, and should be read in conjunction with the investor call held on October 7, 2026, discussing the company’s financial condition and results of operations as of and for the quarter ended August 30, 2026. Because the results of our Dockers® business are classified as discontinued operations, those results are not reflected in our non-GAAP measures.

In the table below, we define the following non-GAAP measures:

Most comparable GAAP measure

Non-GAAP measure

Non-GAAP measure definition

Selling, general and administrative expenses (“SG&A”)

Adjusted SG&A

SG&A excluding goodwill impairment charges and restructuring related charges and other, net

SG&A margin

Adjusted SG&A margin

Adjusted SG&A as a percentage of net revenues

Net income from continuing operations

Adjusted EBIT

Net income from continuing operations excluding income tax expense, interest expense, other income (expense), net, goodwill impairment charges, restructuring charges, net, and restructuring related charges and other, net

Net income margin from continuing operations

Adjusted EBIT margin

Adjusted EBIT as a percentage of net revenues

Net income from continuing operations

Adjusted EBITDA

Adjusted EBIT excluding depreciation and amortization expense

Net income from continuing operations

Adjusted net income

Net income from continuing operations excluding goodwill impairment charges, restructuring charges, net, restructuring related charges and other, net, loss on early extinguishment of debt, and gain on legal settlement, adjusted to give effect to the income tax impact of such adjustments

Net income margin from continuing operations

Adjusted net income margin

Adjusted net income as a percentage of net revenues

Diluted earnings per share from continuing operations

Adjusted diluted earnings per share

Adjusted net income per weighted-average number of diluted common shares outstanding

  Adjusted SG&A:

The following table presents a reconciliation of SG&A, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted SG&A for each of the periods presented.

Three Months Ended

Nine Months Ended

August 30,
2026

August 31,
2025

August 30,
2026

August 31,
2025

(Dollars in millions)

(Unaudited)

Most comparable GAAP measure:

Selling, general and administrative expenses

$

835.9

$

775.6

$

2,551.0

$

2,315.9

Non-GAAP measure:

Selling, general and administrative expenses

$

835.9

$

775.6

$

2,551.0

$

2,315.9

Goodwill impairment charges(1)

—

—

—

(2.5

)

Restructuring related charges and other, net(2)

(18.8

)

(6.3

)

(35.5

)

(14.0

)

Adjusted SG&A

$

817.1

$

769.3

$

2,515.5

$

2,299.4

SG&A margin

51.9

%

50.3

%

51.9

%

51.3

%

Adjusted SG&A margin

50.8

%

49.8

%

51.2

%

50.9

%

____________________ (1)

For the nine-month period ended August 31, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia.

(2)

For the three-month period ended August 30, 2026, restructuring related charges and other, net consists primarily of $14.1 million of consulting fees associated with our restructuring activities as well as distribution center transition costs and other expenses.

For the nine-month period ended August 30, 2026, restructuring related charges and other, net consists primarily of $16.8 million of consulting fees associated with our restructuring activities, $10.0 million of attorney fees related to a gain on legal settlements, as well as distribution center transition costs, legal claims, and other expenses.

For the three-month period ended August 31, 2025, restructuring related charges and other, net primarily consists of $4.3 million of Project Fuel restructuring related costs which includes consulting costs, distribution center transition costs, and employee one-time incentives, as well as other costs including estimated legal settlements of $2.0 million.

For the nine-month period ended August 31, 2025, restructuring related charges and other, net primarily consists of $11.8 million of Project Fuel restructuring related costs which includes consulting costs, distribution center transition costs, and employee one-time incentives, as well as other costs including estimated legal settlements of $2.0 million.

  Adjusted EBIT and Adjusted EBITDA:

The following table presents a reconciliation of net income from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBIT and Adjusted EBITDA for each of the periods presented.

Three Months Ended

Nine Months Ended

August 30,
2026

August 31,
2025

August 30,
2026

August 31,
2025

(Dollars in millions)

(Unaudited)

Most comparable GAAP measure:

Net income from continuing operations

$

168.6

$

122.0

$

440.5

$

341.8

Non-GAAP measure:

Net income from continuing operations

$

168.6

$

122.0

$

440.5

$

341.8

Income tax expense

51.5

34.2

130.0

93.5

Interest expense

12.9

12.5

38.9

35.2

Other (income) expense, net

(10.7

)

(1.3

)

(66.2

)

(3.5

)

Goodwill impairment charges(1)

—

—

—

2.5

Restructuring charges, net(2)

7.6

8.6

29.0

22.1

Restructuring related charges and other, net(3)

18.8

6.3

35.5

14.0

Adjusted EBIT

$

248.7

$

182.3

$

607.7

$

505.6

Depreciation and amortization

54.7

51.7

167.1

151.2

Adjusted EBITDA

$

303.4

$

234.0

$

774.8

$

656.8

Net income margin from continuing operations

10.5

%

7.9

%

9.0

%

7.6

%

Adjusted EBIT margin

15.5

%

11.8

%

12.4

%

11.2

%

____________________ (1)

For the nine-month period ended August 31, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia.

(2)

For the three-month period ended August 30, 2026, restructuring charges, net consists primarily of $5.5 million of asset impairment charges related to the decision to discontinue certain technology projects, as well as severance and post-employment benefit charges.

For the nine-month period ended August 30, 2026, restructuring charges, net consists primarily of $19.9 million of severance and post-employment benefit charges, $7.4 million of asset impairment charges related to the decision to discontinue certain technology projects, as well as contract termination costs.

For the three-month period ended August 31, 2025, restructuring charges, net includes $8.6 million in connection with Project Fuel, primarily consisting of severance and other post-employment benefit charges.

For the nine-month period ended August 31, 2025, restructuring charges, net includes $22.1 million in connection with Project Fuel consisting of $9.2 million of asset impairment in connection with the closures of distribution centers, $18.3 million of severance and other post-employment benefit charges, and $3.9 million of contract terminations and other costs, partially offset by a $9.3 million gain on the sale of a previously closed distribution center.

(3)

For the three-month period ended August 30, 2026, restructuring related charges and other, net consists primarily of $14.1 million of consulting fees associated with our restructuring activities as well as distribution center transition costs and other expenses.

For the nine-month period ended August 30, 2026, restructuring related charges and other, net consists primarily of $16.8 million of consulting fees associated with our restructuring activities, $10.0 million of attorney fees related to a gain on legal settlements, as well as distribution center transition costs, legal claims, and other expenses.

For the three-month period ended August 31, 2025, restructuring related charges and other, net primarily consists of $4.3 million of Project Fuel restructuring related costs which includes consulting costs, distribution center transition costs, and employee one-time incentives, as well as other costs including estimated legal settlements of $2.0 million.

For the nine-month period ended August 31, 2025, restructuring related charges and other, net primarily consists of $11.8 million of Project Fuel restructuring related costs which includes consulting costs, distribution center transition costs, and employee one-time incentives, as well as other costs including estimated legal settlements of $2.0 million.

  Adjusted Net Income:

The following table presents a reconciliation of net income from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted net income for each of the periods presented.

Three Months Ended

Nine Months Ended

Twelve Months Ended

August 30,
2026

August 31,
2025

August 30,
2026

August 31,
2025

August 30,
2026

August 31,
2025

(Dollars in millions)

(Unaudited)

Most comparable GAAP measure:

Net income from continuing operations

$

168.6

$

122.0

$

440.5

$

341.8

$

600.7

$

522.2

Non-GAAP measure:

Net income from continuing operations

$

168.6

$

122.0

$

440.5

$

341.8

$

600.7

$

522.2

Goodwill impairment charges(1)

—

—

—

2.5

—

2.5

Restructuring charges, net(2)

7.6

8.6

29.0

22.1

31.4

36.1

Restructuring related charges and other, net(3)

19.0

7.4

36.2

15.1

36.8

35.7

Loss on early extinguishment of debt

—

1.5

—

1.5

—

1.5

Gain on legal settlement

—

—

(33.0

)

—

(33.0

)

—

Tax impact of adjustments(4)

(6.3

)

(3.8

)

(7.3

)

(8.8

)

(7.6

)

(24.0

)

Adjusted net income

$

188.9

$

135.7

$

465.4

$

374.2

$

628.3

$

574.0

Net income margin from continuing operations

10.5

%

7.9

%

9.0

%

7.6

%

Adjusted net income margin

11.7

%

8.8

%

9.5

%

8.3

%

____________________ (1)

For the nine-month period ended August 31, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia.

(2)

For the three-month period ended August 30, 2026, restructuring charges, net consists primarily of $5.5 million of asset impairment charges related to the decision to discontinue certain technology projects, as well as severance and post-employment benefit charges.

For the nine-month period ended August 30, 2026, restructuring charges, net consists primarily of $19.9 million of severance and post-employment benefit charges, $7.4 million of asset impairment charges related to the decision to discontinue certain technology projects, as well as contract termination costs.

For the three-month period ended August 31, 2025, restructuring charges, net includes $8.6 million in connection with Project Fuel, primarily consisting of severance and other post-employment benefit charges.

For the nine-month period ended August 31, 2025, restructuring charges, net includes $22.1 million in connection with Project Fuel consisting of $9.2 million of asset impairment in connection with the closures of distribution centers, $18.3 million of severance and other post-employment benefit charges, and $3.9 million of contract terminations and other costs, partially offset by a $9.3 million gain on the sale of a previously closed distribution center.

(3)

For the three-month period ended August 30, 2026, restructuring related charges and other, net consists primarily of $14.1 million of consulting fees associated with our restructuring activities as well as distribution center transition costs and other expenses.

For the nine-month period ended August 30, 2026, restructuring related charges and other, net consists primarily of $16.8 million of consulting fees associated with our restructuring activities, $10.0 million of attorney fees related to a gain on legal settlements, as well as distribution center transition costs, legal claims, and other expenses.

For the three-month period ended August 31, 2025, restructuring related charges and other, net primarily consists of $4.3 million of Project Fuel restructuring related costs which includes consulting costs, distribution center transition costs, and employee one-time incentives, as well as other costs including estimated legal settlements of $2.0 million. It additionally includes subrogation related to an insurance recovery of $1.1 million which was recorded within other income (expense).

For the nine-month period ended August 31, 2025, restructuring related charges and other, net primarily consists of $11.8 million of Project Fuel restructuring related costs which includes consulting costs, distribution center transition costs, and employee one-time incentives, as well as other costs including estimated legal settlements of $2.0 million. It additionally includes subrogation related to an insurance recovery of $1.1 million which was recorded within other income (expense).

(4)

Tax impact calculated using the annual effective tax rate, excluding discrete costs and benefits.

  Adjusted Diluted Earnings per Share:

The following table presents a reconciliation of diluted earnings per share from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted diluted earnings per share for each of the periods presented.

Three Months Ended

Nine Months Ended

August 30,
2026

August 31,
2025

August 30,
2026

August 31,
2025

(Unaudited)

Most comparable GAAP measure:

Diluted earnings per share from continuing operations

$

0.43

$

0.31

$

1.12

$

0.86

Non-GAAP measure:

Diluted earnings per share from continuing operations

$

0.43

$

0.31

$

1.12

$

0.86

Goodwill impairment charges(1)

—

—

—

0.01

Restructuring charges, net(2)

0.02

0.02

0.08

0.06

Restructuring related charges and other, net(3)

0.05

0.02

0.09

0.04

Loss on early extinguishment of debt

—

—

—

—

Gain on legal settlement

—

—

(0.08

)

—

Tax impact of adjustments(4)

(0.02

)

(0.01

)

(0.02

)

(0.03

)

Adjusted diluted earnings per share

$

0.48

$

0.34

$

1.19

$

0.94

____________________ (1)

For the nine-month period ended August 31, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia.

(2)

For the three-month period ended August 30, 2026, restructuring charges, net consists primarily of $5.5 million of asset impairment charges related to the decision to discontinue certain technology projects, as well as severance and post-employment benefit charges.

For the nine-month period ended August 30, 2026, restructuring charges, net consists primarily of $19.9 million of severance and post-employment benefit charges, $7.4 million of asset impairment charges related to the decision to discontinue certain technology projects, as well as contract termination costs.

For the three-month period ended August 31, 2025, restructuring charges, net includes $8.6 million in connection with Project Fuel, primarily consisting of severance and other post-employment benefit charges.

For the nine-month period ended August 31, 2025, restructuring charges, net includes $22.1 million in connection with Project Fuel consisting of $9.2 million of asset impairment in connection with the closures of distribution centers, $18.3 million of severance and other post-employment benefit charges, and $3.9 million of contract terminations and other costs, partially offset by a $9.3 million gain on the sale of a previously closed distribution center.

(3) For the three-month period ended August 30, 2026, restructuring related charges and other, net consists primarily of $14.1 million of consulting fees associated with our restructuring activities as well as distribution center transition costs and other expenses.

For the nine-month period ended August 30, 2026, restructuring related charges and other, net consists primarily of $16.8 million of consulting fees associated with our restructuring activities, $10.0 million of attorney fees related to a gain on legal settlements, as well as distribution center transition costs, legal claims, and other expenses.

For the three-month period ended August 31, 2025, restructuring related charges and other, net primarily consists of $4.3 million of Project Fuel restructuring related costs which includes consulting costs, distribution center transition costs, and employee one-time incentives, as well as other costs including estimated legal settlements of $2.0 million. It additionally includes subrogation related to an insurance recovery of $1.1 million which was recorded within other income (expense).

For the nine-month period ended August 31, 2025, restructuring related charges and other, net primarily consists of $11.8 million of Project Fuel restructuring related costs which includes consulting costs, distribution center transition costs, and employee one-time incentives, as well as other costs including estimated legal settlements of $2.0 million. It additionally includes subrogation related to an insurance recovery of $1.1 million which was recorded within other income (expense).

(4) Tax impact calculated using the annual effective tax rate, excluding discrete costs and benefits.

  Adjusted Free Cash Flow:

Adjusted free cash flow, a non-GAAP financial measure, includes net cash flow from operating activities less purchases of property, plant and equipment from continuing and discontinued operations. This measure therefore includes the results of our Dockers® business, which is classified as discontinued operations. We believe Adjusted free cash flow is an important liquidity measure of the cash that is available after capital expenditures for operational expenses and investment in our business. We believe Adjusted free cash flow is useful to investors because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth and return capital to stockholders.

The following table presents a reconciliation of net cash flow from operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted free cash flow for each of the periods presented.

Three Months Ended

Nine Months Ended

August 30,
2026

August 31,
2025

August 30,
2026

August 31,
2025

(Dollars in millions)

(Unaudited)

Most comparable GAAP measure:

Net cash provided by operating activities

$

102.9

$

24.8

$

585.2

$

262.8

Net cash used for investing activities

(243.1

)

120.0

(294.6

)

(9.7

)

Net cash used for financing activities

(64.7

)

(184.7

)

(405.6

)

(337.1

)

Non-GAAP measure:

Net cash provided by operating activities

$

102.9

$

24.8

$

585.2

$

262.8

Purchases of property, plant and equipment

(58.6

)

(64.2

)

(157.9

)

(170.3

)

Adjusted free cash flow

$

44.3

$

(39.4

)

$

427.3

$

92.5

Return on Invested Capital:

We define Return on invested capital (“ROIC”) as the trailing four quarters of Adjusted net income before interest and after taxes divided by the average trailing five quarters of total invested capital. We define total invested capital as total debt plus shareholders' equity less cash and short-term investments. We believe ROIC is useful to investors as it quantifies how efficiently we generated operating income relative to the capital we have invested in the business.

Our calculation of ROIC is considered a non-GAAP financial measure because we calculate ROIC using the non-GAAP metric Adjusted net income. Although ROIC is a standard financial metric, numerous methods exist for calculating a company's ROIC. As a result, the method we use to calculate our ROIC may differ from the methods used by other companies. This metric is not defined by GAAP and should not be considered as an alternative to earnings measures defined by GAAP.

The table below sets forth the calculation of ROIC for each of the periods presented.

Trailing Four Quarters

August 30,
2026

August 31,
2025

(Dollars in millions)

(Unaudited)

Net income from continuing operations

$

600.7

$

522.2

Numerator

Adjusted net income(1)

$

628.3

$

574.0

Interest expense

52.3

46.7

Adjusted income tax expense

176.1

132.9

Adjusted net income before interest and taxes

856.7

753.6

Income tax adjustment(2)

(187.6

)

(141.7

)

Adjusted net income before interest and after taxes

$

669.1

$

611.9

Average Trailing Five Quarters

August 30,
2026

August 31,
2025

(Dollars in millions)

(Unaudited)

Denominator

Total debt, including operating lease liabilities

$

2,380.8

$

2,223.5

Shareholders' equity

2,242.8

1,920.9

Cash and short-term investments

(715.6

)

(621.6

)

Total invested Capital

$

3,908.0

$

3,522.8

Net income to total invested capital

15.4

%

14.8

%

Return on invested capital

17.1

%

17.4

%

  Organic Net Revenues:

The table below sets forth the calculation of net revenues by segment on an organic net revenues basis for each of the periods presented.

Three Months Ended

Nine Months Ended

August 30,
2026

August 31,
2025

% Increase

(Decrease)

August 30,
2026

August 31,
2025

% Increase

(Decrease)

(Dollars in millions)

(Unaudited)

Total net revenues(1)

As reported

$

1,609.7

$

1,543.4

4.3

%

$

4,914.2

$

4,516.2

8.8

%

Impact of foreign currency exchange rates

—

(2.7

)

—

99.7

Net revenues from Denizen® wind down(2)

—

—

—

(2.3

)

Organic net revenues

$

1,609.7

$

1,540.7

4.5

%

$

4,914.2

$

4,613.6

6.5

%

Americas

As reported

$

838.8

$

806.4

4.0

%

$

2,510.0

$

2,337.8

7.4

%

Impact of foreign currency exchange rates

—

12.1

—

46.0

Net revenues from Denizen® wind down(2)

—

—

—

(2.3

)

Organic net revenues - Americas

$

838.8

$

818.5

2.5

%

$

2,510.0

$

2,381.5

5.4

%

Europe

As reported

$

442.1

$

426.3

3.7

%

$

1,358.3

$

1,229.9

10.4

%

Impact of foreign currency exchange rates

—

(4.2

)

—

67.4

Organic net revenues - Europe

$

442.1

$

422.1

4.7

%

$

1,358.3

$

1,297.3

4.7

%

Asia

As reported

$

292.8

$

277.7

5.4

%

$

924.0

$

843.5

9.5

%

Impact of foreign currency exchange rates

—

(10.6

)

—

(13.7

)

Organic net revenues - Asia

$

292.8

$

267.1

9.6

%

$

924.0

$

829.8

11.4

%

Beyond Yoga®

As reported and organic net revenues - Beyond Yoga®

$

36.0

$

33.0

9.1

%

$

121.9

$

105.0

16.1

%

The table below sets forth the calculation of net revenues by channel on an organic net revenues basis for each of the periods presented.

Three Months Ended

Nine Months Ended

August 30,
2026

August 31,
2025

% Increase

(Decrease)

August 30,
2026

August 31,
2025

% Increase

(Decrease)

(Dollars in millions)

(Unaudited)

Total net revenues(1)

As reported

$

1,609.7

$

1,543.4

4.3

%

$

4,914.2

$

4,516.2

8.8

%

Impact of foreign currency exchange rates

—

(2.7

)

—

99.7

Net revenues from Denizen® wind down(2)

—

—

—

(2.3

)

Organic net revenues

$

1,609.7

$

1,540.7

4.5

%

$

4,914.2

$

4,613.6

6.5

%

Wholesale

As reported

$

882.3

$

832.2

6.0

%

$

2,481.7

$

2,301.4

7.8

%

Impact of foreign currency exchange rates

—

(2.5

)

—

42.6

Net revenues from Denizen® wind down(2)

—

—

—

(2.3

)

Organic net revenues - Wholesale

$

882.3

$

829.7

6.3

%

$

2,481.7

$

2,341.7

6.0

%

DTC

As reported

$

727.4

$

711.2

2.3

%

$

2,432.5

$

2,214.8

9.8

%

Impact of foreign currency exchange rates

—

(0.2

)

—

57.1

Organic net revenues - DTC

$

727.4

$

711.0

2.3

%

$

2,432.5

$

2,271.9

7.1

%

The table below sets forth the calculation of net revenues by brand on an organic net revenues basis for each of the periods presented.

Three Months Ended

Nine Months Ended

August 30,
2026

August 31,
2025

% Increase

(Decrease)

August 30,
2026

August 31,
2025

% Increase

(Decrease)

(Dollars in millions)

(Unaudited)

Total Levi’s Brands net revenues

As reported

$

1,573.7

$

1,510.4

4.2

%

$

4,792.3

$

4,411.2

8.6

%

Impact of foreign currency exchange rates

—

(2.7

)

—

99.7

Net revenues from Denizen® wind down(1)

—

—

—

(2.3

)

Organic net revenues

$

1,573.7

$

1,507.7

4.4

%

$

4,792.3

$

4,508.6

6.3

%

Levi’s®

As reported

$

1,506.8

$

1,450.8

3.9

%

$

4,602.4

$

4,236.4

8.6

%

Impact of foreign currency exchange rates

—

(2.5

)

—

99.4

Organic net revenues - Levi’s®

$

1,506.8

$

1,448.3

4.0

%

$

4,602.4

$

4,335.8

6.1

%

Levi Strauss SignatureTM

As reported

$

66.9

$

59.6

12.2

%

$

189.9

$

172.5

10.1

%

Impact of foreign currency exchange rates

—

(0.2

)

—

0.3

Organic net revenues - Levi Strauss SignatureTM

$

66.9

$

59.4

12.6

%

$

189.9

$

172.8

9.9

%

Constant-Currency Adjusted EBIT and Constant-Currency Adjusted EBIT margin:

The table below sets forth the calculation of Adjusted EBIT and Adjusted EBIT margin on a constant-currency basis for each of the periods presented.

Three Months Ended

Nine Months Ended

August 30,
2026

August 31,
2025

% Increase
(Decrease)

August 30,
2026

August 31,
2025

% Increase
(Decrease)

(Dollars in millions)

(Unaudited)

Adjusted EBIT(1)

$

248.7

$

182.3

36.4

%

$

607.7

$

505.6

20.2

%

Impact of foreign currency exchange rates

—

(1.6

)

*

—

21.3

*

Constant-currency Adjusted EBIT

$

248.7

$

180.7

37.6

%

$

607.7

$

526.9

15.3

%

Adjusted EBIT margin

15.5

%

11.8

%

31.4

%

12.4

%

11.2

%

10.7

%

Impact of foreign currency exchange rates

—

(0.1

)

*

—

0.2

*

Constant-currency Adjusted EBIT margin(2)

15.5

%

11.7

%

32.5

%

12.4

%

11.4

%

8.8

%

Constant-Currency Adjusted Net Income and Constant-Currency Adjusted Diluted Earnings per Share:

The table below sets forth the calculation of Adjusted net income and Adjusted diluted earnings per share on a constant-currency basis for each of the periods presented.

Three Months Ended

Nine Months Ended

August 30,
2026

August 31,
2025

% Increase
(Decrease)

August 30,
2026

August 31,
2025

% Increase
(Decrease)

(Dollars in millions, except per share amounts)

(Unaudited)

Adjusted net income(1)

$

188.9

$

135.7

39.2

%

$

465.4

$

374.2

24.4

%

Impact of foreign currency exchange rates

—

(2.0

)

*

—

6.2

*

Constant-currency Adjusted net income

$

188.9

$

133.7

41.3

%

$

465.4

$

380.4

22.3

%

Constant-currency Adjusted net income margin(2)

11.7

%

8.7

%

9.5

%

8.2

%

Adjusted diluted earnings per share

$

0.48

$

0.34

41.2

%

$

1.19

$

0.94

26.6

%

Impact of foreign currency exchange rates

—

(0.01

)

*

—

0.01

*

Constant-currency Adjusted diluted earnings per share

$

0.48

$

0.33

45.5

%

$

1.19

$

0.95

25.3

%

More News From Levi Strauss & Co.

Levi Strauss & Co. (NYSE:LEVI) posted its third-quarter fiscal 2026 results after Wednesday’s closing bell, missing revenue estimates.  Here’s a look at the details inside the report. 

LEVI stock is moving. Watch the price action here. Levi Strauss Q3 Details   Levi Strauss reported quarterly earnings of 48 cents per share, inclusive of a 16 cent impact from tariff refunds, which beat the consensus estimate of 36 cents, per Benzinga Pro data. 

Quarterly revenue came in at $1.61 billion, which missed the Street estimate of $1.62 billion.

Levi Strauss reported the following quarterly highlights:

Net Revenues of $1.6 billion increased 4% on a reported basis and 5% on an organic basis versus the third quarter of 2025. DTC (Direct-to-Consumer) net revenues increased 2% on a reported and organic basis. DTC growth on a reported basis reflected a 2% increase in the Americas, a 1% decrease in the U.S., a 2% decrease in Europe and an 8% increase in Asia. Wholesale net revenues increased 6% on a reported and organic basis, driven by growth in all segments, with particularly strong performance in Europe and Asia. “Our third-quarter performance highlighted the power of our diversified portfolio and reinforced our confidence that we have the right strategies in place,” said Michelle Gass, CEO of Levi Strauss & Co.

“We saw strong growth in our international and wholesale businesses, and continued momentum across our lifestyle categories,” Gass added.

Read Next

Looking AheadLevi Strauss raised its fiscal 2026 adjusted EPS guidance to $1.54 to $1.56, versus the $1.54 analyst estimate, and narrowed its revenue outlook to $6.72 billion, versus the $6.76 billion estimate.

LEVI Stock Price: According to data from Benzinga Pro, Levi Strauss stock was up 0.72% to $19.51 in Wednesday’s extended trading.  

Photo: Shutterstock

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Levi Strauss & Co (NYSE:LEVI) reported third-quarter adjusted earnings of $0.48 per share, topping analyst estimates of $0.36 , as stronger margins lifted profitability. 

Adjusted earnings rose 41% from 34 cents a year earlier. Net revenue climbed 4.3% to $1.61 billion, just shy of the $1.615 billion analysts expected. 

Gross margin expanded to 66.2% from 61.7%, with gross profit up 12% to $1.07 billion. Operating income jumped 33% to $222.3 million, and operating margin widened to 13.8% from 10.8%. 

The company raised its full-year adjusted earnings forecast to $1.54 to $1.56 per share from $1.46 to $1.52, in line with the $1.54 analysts expected. The range implies fourth-quarter adjusted earnings of $0.35 to $0.37 , below the $0.48 analysts estimated. 

Levi's also lifted its full-year outlook for reported revenue growth to about 7%, organic growth to about 6%, gross margin expansion to 130 basis points and adjusted EBIT margin to about 12.1%. 

Year-to-date operating cash flow reached $585.2 million, up from $262.8 million a year ago, while capital expenditures fell to $157.9 million from $170.3 million. 

Wholesale sales rose 6% to $882.3 million, while direct-to-consumer revenue grew 2.3% to $727.4 million and made up 45.2% of sales. 

By region, Asia led growth with revenue up 5.4% to $292.8 million, helped by an 8.3% rise in direct-to-consumer sales. Americas revenue increased 4% to $838.8 million, and Europe rose 3.7% to $442.1 million, with European wholesale up 9.4%. 

Beyond Yoga revenue grew 9.1% to $36 million. 

GAAP diluted earnings per share from continuing operations were $0.43, compared with $0.31 a year earlier. 

Shares of Levi’s were trading around 1.7% lower following the report. 

Gen Z is reviving older Levi's cuts like the baggy 517, and the company is forecasting 7.5% sales growth for its fiscal year ahead of earnings this week. Yahoo Finance Host Julie Hyman, Breaking Business News Reporter Jake Conley and Senior Autos Reporter Pras Subramanian discuss whether the denim comeback is a fad or a lasting trend, Levi's resale and vintage push, its bet on direct-to-consumer stores, and whether the buzz can finally translate into stronger sales growth.

Analysts on Wall Street project that Levi Strauss (LEVI - Free Report) will announce quarterly earnings of $0.36 per share in its forthcoming report, representing an increase of 5.9% year over year. Revenues are projected to reach $1.61 billion, increasing 4.5% from the same quarter last year.

The consensus EPS estimate for the quarter has undergone an upward revision of 0.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Bearing this in mind, let's now explore the average estimates of specific Levi Strauss metrics that are commonly monitored and projected by Wall Street analysts.

Based on the collective assessment of analysts, 'Total Levi?s Brands Net Revenues' should arrive at $1.58 billion. The estimate indicates a year-over-year change of +4.5%.

According to the collective judgment of analysts, 'Geographic Revenues- Americas' should come in at $834.05 million. The estimate suggests a change of +3.4% year over year.

The combined assessment of analysts suggests that 'Geographic Revenues- Europe' will likely reach $451.47 million. The estimate indicates a change of +5.9% from the prior-year quarter.

The average prediction of analysts places 'Geographic Revenues- Asia' at $292.56 million. The estimate indicates a year-over-year change of +5.4%.

View all Key Company Metrics for Levi Strauss here>>>

Over the past month, Levi Strauss shares have recorded returns of -3.8% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #3 (Hold), LEVI will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Also, Ford Motor's profitable F-150 takes a hit.

Levi Strauss & Co. trades at an attractive 12.8x forward P/E, offering solid margin of safety and upside potential. Q2 delivered strong organic growth in Americas and Asia, with new categories and marketing campaigns driving brand momentum. Despite cautious industry sentiment and modest growth outlook, LEVI benefits from lower-than-expected tariff rates, potentially boosting EPS by ~20%.

Levi Strauss & Co. (NYSE:LEVI) will release its third quarter earnings report after the closing bell on Wednesday, Oct. 7.

Analysts expect the San Francisco, California-based company to report quarterly earnings of 36 cents per share, up from 34 cents per share in the year-ago period. The consensus estimate for LEVI’s quarterly revenue is $1.62 billion. It reported $1.54 billion last year, according to Benzinga Pro.

On July 8, Levi Strauss posted better-than-expected second-quarter results.

Shares of Levi Strauss rose 0.5% to close at $19.72 on Thursday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

JP Morgan analyst Matthew Boss maintained an Overweight rating and raised the price target from $33 to $34 on Aug. 4, 2026. This analyst has an accuracy rate of 66%. Wells Fargo analyst Ike Boruchow downgraded the stock from Overweight to Equal-Weight with a price target of $25 on July 28, 2026. This analyst has an accuracy rate of 70%. Barclays analyst Adrienne Yih maintained an Overweight rating and raised the price target from $26 to $27 on July 10, 2026. This analyst has an accuracy rate of 65%. Needham analyst Tom Nikic maintained the stock with a Buy rating with a price target of $28 on July 9, 2026. This analyst has an accuracy rate of 52%. BTIG analyst Robert Drbul maintained a Buy rating with a price target of $27 on July 9, 2026. This analyst has an accuracy rate of 53%. Considering buying LEVI stock? Here’s what analysts think:

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When it comes to making the fashion industry more sustainable, there’s only so much a brand can change about its own actions. Around 70% of the industry’s total emissions come from upstream activities in supply chains, like fiber and fabric production.

That means for fashion brands to really meet their climate goals, they have to help their suppliers become more sustainable, too. 

Now, Levi Strauss & Co. and Marks & Spencer are launching an effort to do just that, called the Fashion Renewable Collaborative.

The program, in partnership with Schneider Electric’s SE Advisory Services, aims to get multiple brands on board to help fashion suppliers switch to renewable energy—a key step to decarbonizing the apparel sector.

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[Screenshot: Resource Advisor+ for Supply Chain]The Fashion Renewable Collaborative is similar to a program Levi’s launched itself last year, called Levi Energy Accelerator Program, or LEAP. Also in partnership with Schneider Electric, LEAP focused on helping the brand’s garment manufacturers in India learn about and access resources for renewable energy procurement.

Levi’s soon learned that British retailer Marks & Spencer was doing something similar through a program called Re: Spark. That sparked a realization for Jennifer DuBuisson, Levi’s senior director of sustainability.

“We can each continue to keep doing this on our own, but at the end of the day, we have shared supply chains,” she says. “Suppliers are already facing such fragmentation from different brands.”

Explore Topicsfashion industryLevisrenewable energysustainable fashion

Key Takeaways Levi Strauss saw international markets reach 60% of revenues in the first half of fiscal 2026.Mexico grew 15%, while Brazil, the Andes and Colombia posted double-digit growth in the quarter.Levi Strauss raised organic net revenue growth expectations to 5.5-6% for fiscal 2026. Levi Strauss & Co. (LEVI - Free Report) continues to gain traction in the international markets, strengthening its position as a global denim lifestyle brand. International markets represented approximately 60% of the company’s revenues in the first half of fiscal 2026, up from 57% a year ago. In the second quarter of fiscal 2026, international revenues increased 6% organically, led by double-digit growth in Asia and Latin America.

Asia remained a key growth engine, with second-quarter revenues increasing 12% organically. Growth was broad-based across direct-to-consumer (DTC) and wholesale channels, while the operating margin expanded 350 basis points to 15%. Turkey, Japan and India led growth across the region. Meanwhile, China showed early signs of recovery, supported by new leadership and improvements in product and execution, with management encouraged by a return to growth.

Latin America continued to build momentum. Mexico, Levi Strauss’ second-largest market globally, delivered 15% growth in the quarter. Across Latin America, Brazil, the Andes and Colombia posted double-digit growth. Management sees additional opportunities to build on this momentum through store openings, e-commerce and wholesale expansion.

Europe’s reported revenues increased 4%, while organic revenues declined 1% due entirely to the impacts of last year’s distribution-center transition. Underlying trends remained healthy, with DTC revenues increasing 7% and strength in Germany and the U.K. The completed European distribution-network remap is already supporting operational efficiency, distribution expense leverage and profitability. Management is encouraged by high-single-digit wholesale pre-order growth for the second half.

Levi Strauss’ expanding international footprint provides meaningful runway for future growth, particularly as several markets remain in the early stages of development. Management’s confidence is reflected in its raised fiscal 2026 outlook, with organic net revenues expected to increase 5.5-6% compared with the previous 4.5-5.5%. Higher DTC penetration, continued international expansion and broader lifestyle offerings are expected to support the company’s growth trajectory.

LEVI’s Price Performance, Valuation & EstimatesShares of Levi Strauss have gained 3.3% in the year-to-date period against the industry’s 13.4% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, LEVI trades at a trailing price-to-sales ratio of 1.18X, below the industry’s average of 1.63X. It has a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Levi Strauss’ fiscal 2026 earnings implies year-over-year growth of 14.9%, while the same for fiscal 2027 indicates an uptick of 11.3%. Estimates for fiscal 2026 and 2027 have been revised upward by 4 cents each over the past 60 days.

Image Source: Zacks Investment Research

Levi Strauss currently carries a Zacks Rank #3 (Hold).

Better-Ranked PicksFIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FIGS’s current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.

Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company has a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.

American Eagle Outfitters Inc. (AEO - Free Report) is a specialty retailer of casual apparel, accessories and footwear. It carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales suggests growth of 17.3% and 5.7%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 48.5%.

By PYMNTS  |  August 7, 2026

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Levi Strauss & Co. has disclosed that an unauthorized third party accessed company files through a social engineering scam, according to the company’s Friday (Aug. 7) filing with the Securities and Exchange Commission.

The jeans and apparel company said in the filing that it recently detected that it “experienced a cybersecurity incident in which an unauthorized third party gained access to Company files through social engineering techniques that enabled unauthorized access to three employees’ Company-issued computers.”

Following its detection of the incident, Levi Strauss & Co. initiated response protocols, implemented containment measures, launched an investigation, engaged the services of third-party cybersecurity experts and notified affected parties and applicable regulators, according to the filing.

Based on preliminary findings from its investigation, Levi Strauss & Co. believes some corporate information was accessed and exfiltrated during the incident. The company said it believes that it terminated the unauthorized access, that no consumer data was impacted, and that the incident is unlikely to have a material impact on its business.

“The Company has not experienced any interruption in business operations as a result of the incident,” Levi Strauss & Co. said in the filing.

The Federal Bureau of Investigation (FBI) said in an April2024 public service announcement that cyber criminals were targeting individuals and businesses with social engineering techniques.

These techniques include impersonating employees to update employee login information and gain access to a company’s network; contacting a victim’s mobile carrier and convincing the carrier to transfer the victim’s mobile number to the cybercriminal’s device and then using that number to bypass multi-factor authentication; and posing as a trusted institution or as the employer’s VPN portal to solicit the victim’s information and login credentials, according to the announcement.

Google Threat Intelligence Group (GTIG) said in a Thursday (Aug. 6) blog post that several threat actors are targeting enterprise employees through voice phishing (vishing), often via the employees’ personal mobile devices, and posing as IT helpdesk staff facilitating what they say are mandatory, urgent security migrations.

The threat actors then lure victims to spoofed login portals, intercept the victims’ credentials and multi-factor authentication, and deploy automated scripts for data exfiltration from enterprise cloud environments.

Verizon said in May that social engineering played a role in 16% of the 22,000 confirmed data breaches across 145 countries that it analyzed in a recent report.

Doug Bergeron, a beneficial owner of 5.0% of the outstanding common stock of Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETD), to

Key Takeaways Levi Strauss grew e-commerce 17% organically as traffic, conversion and pricing improved digital sales.LEVI added nearly 3 million loyalty members, lifting global enrollment to almost 50 million.Levi Strauss is modernizing core systems to improve inventory visibility and support AI-driven operations. Levi Strauss & Co. (LEVI - Free Report) is reshaping its operating model through digital commerce, loyalty data, technology modernization and automation.

These initiatives support faster decision-making, better inventory visibility and more personalized consumer engagement. Over time, they could also strengthen margin potential as Levi Strauss expands its direct-to-consumer business.

LEVI Turns E-Commerce Into a Growth DriverLevi Strauss’ e-commerce business increased 17% organically in the second quarter of fiscal 2026. The gain was supported by stronger traffic, better conversion, higher units per transaction and average unit retail growth.

The quality of that growth is important. Levi Strauss reduced promotional activity on its site, indicating that digital momentum was not dependent on heavier discounting.

That gives the company a stronger base for profitable digital expansion. A more productive e-commerce channel can help LEVI control pricing, improve merchandising and deepen consumer data across owned channels.

Levi Strauss Builds a Data-Rich Consumer BaseLevi Strauss added nearly 3 million loyalty members in the quarter, bringing global enrollment to almost 50 million.

A larger first-party customer base can support more personalized communication, better product recommendations and stronger retention. It also gives Levi Strauss more direct insight into shopping behavior across stores and online channels.

This matters in a competitive apparel market. American Eagle Outfitters, Inc. (AEO - Free Report) sells men’s and women’s jeans, tops, bottoms, activewear and related apparel through its American Eagle platform, making it relevant to LEVI’s digital and denim-led strategy. Abercrombie & Fitch Co. (ANF - Free Report) is a global omnichannel specialty retailer of apparel and accessories, making it another useful comparison for lifestyle-brand execution.

LEVI Modernizes Its Global Technology PlatformLevi Strauss is upgrading its enterprise resource planning platform, a core system used to manage business data and operations. Asia and Beyond Yoga have migrated to the new platform, following North America.

Europe and the remaining Latin American markets are expected to move to the platform by mid-2027. Once completed, Levi Strauss should operate with a more unified global system.

That can reduce complexity across regions and channels. It can also improve reporting, planning and execution as the company grows across direct-to-consumer, wholesale and international markets.

Levi Strauss Lays the Groundwork for AIThe global enterprise resource planning platform is intended to improve inventory visibility and speed up decision-making. Those capabilities matter as Levi Strauss manages demand across product categories, stores, regions and digital channels.

Management also sees the platform as a foundation for broader artificial intelligence and automation initiatives. These tools can support faster allocation, improved inventory management and more efficient operations.

For a DTC-first retailer, better data is strategic. It can help Levi Strauss match inventory with demand, improve fulfillment and create more relevant consumer engagement.

LEVI Streamlines Its Distribution NetworkLevi Strauss completed its European omni-channel distribution-network transition, consolidating e-commerce fulfillment into distribution centers in Germany.

The company is also shifting its U.S. distribution network to Maersk. The goal is to improve service levels and eventually eliminate duplicated costs.

The transition is not without friction. The U.S. process has taken longer than originally planned, requiring parallel operations and duplicate expenses until consolidation is completed.

Image Source: Zacks Investment Research

LEVI’s Trend Exposure Carries Mixed SignalsThe bottom line is that digital growth, loyalty data, enterprise resource planning modernization and automation are becoming central to Levi Strauss’ next phase. These investments can support a faster, more responsive and more profitable operating model over time.

The stock currently carries a Zacks Rank #3 (Hold), which points to a balanced near-term setup. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

LEVI’s Value Score of B is a favorable composite signal across value, growth and momentum characteristics, but the company still needs to turn technology and digital progress into durable earnings gains.

Levi Strauss is poised for continued outperformance, driven by robust sales momentum and a compelling valuation. LEVI's Q2 beat-and-raise, fueled by accelerated marketing and strong comparable sales growth, underpins my reiterated buy rating. The company's focus on its core brand, high-teens growth in value-oriented segments, and ~60% gross margins support a bullish thesis.

On Thursday, July 16, during the broadcast of Mad Money , Jim Cramer pushed back on the market's punishment of several blue-chip companies that just posted strong quarters.

Why Levi's Digital Strategy Is Paying Off in a Big WayLevi Strauss & Co. NYSE: LEVI reported stronger-than-expected fiscal second-quarter results and raised its full-year outlook, citing broad-based growth across channels, geographies, genders and product categories.

President and CEO Michelle Gass said the quarter showed that the company’s strategy to become a “DTC-first lifestyle company” is gaining traction. On an organic basis, net revenue rose 6% in the quarter, with direct-to-consumer revenue up 8% and comparable sales up 6%. Gass said the quarter marked the company’s 17th consecutive quarter of comparable sales growth.

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Levi Strauss Gains as DTC Continues to Fuel Revenue Growth“Quarter after quarter, our results demonstrate that our strategies are working and momentum is building,” Gass said.

Revenue Growth Led by DTC, Asia and Women’s The company said international markets continued to show momentum, with Asia revenue up 12% and the U.S. up 6%. Global wholesale increased 3%, led by strength in the U.S. wholesale channel.

Calvin Klein's Parent May Be the Market's Best BargainWomen’s remained a standout category, with revenue up 11% in the quarter. Gass said Levi’s gained market share in both men’s and women’s bottoms, supported by brand strength, marketing and product innovation.

Gass said the company’s push beyond denim bottoms contributed roughly one-third of top-line growth in the quarter. Bottoms revenue increased 6%, while tops were up 5%, or 7% excluding the impact of last year’s European distribution center transition. Shorts rose 11%, and white denim in women’s grew 70%.

The company highlighted continued demand for looser silhouettes, including the 501 ’90s for women and 501 Loose for men, while noting that core fits such as skinny, slim, boot cut and straight still make up the majority of the bottoms business.

Margins Improve Despite Tariff and Currency Pressure Chief Financial and Growth Officer Harmit Singh said reported net revenue increased 8%, while organic revenue rose 6%, despite a two-point drag tied to last year’s European distribution center transition. Gross margin expanded 10 basis points to 62.7%, helped by lower product costs and pricing actions, while tariffs and foreign exchange were headwinds.

Adjusted SG&A increased 6.5%, primarily due to higher selling expenses and unfavorable foreign exchange, but leveraged 80 basis points as a percentage of revenue. Adjusted EBIT margin expanded 70 basis points to 9%, while adjusted EBIT dollars grew 18%. Adjusted diluted earnings per share were $0.28, up 27% from a year earlier and ahead of guidance.

Inventory ended the quarter down 7%, and adjusted free cash flow increased nearly 60% year over year to $231 million. Singh said the company is increasing its third-quarter dividend by $0.02 to $0.16 per share.

Full-Year Outlook Raised for Second Consecutive Quarter Levi Strauss raised its fiscal 2026 outlook, with Singh saying the company is “passing the entire Q2 beat” into full-year guidance. The company now expects reported net revenue to increase 7% to 7.5% and organic net revenue to rise 5.5% to 6%.

The company raised its adjusted diluted EPS outlook to a range of approximately $1.46 to $1.52, up from its prior range of $1.42 to $1.48. Gross margin is expected to expand approximately 10 basis points for the full year, while adjusted EBIT margin is expected to be 12%.

The guidance assumes incremental U.S. tariffs of 30% on imports from China and 20% on imports from the rest of the world. Singh said the guidance does not include any potential benefit from tariff refunds, which total approximately $80 million paid to date.

For the third quarter, the company expects reported and organic net revenue to increase 4% to 5%, with adjusted diluted EPS of approximately $0.34 to $0.36.

Regional Performance and Infrastructure Updates By segment, the Americas delivered 7% growth, with the U.S. up 5% on momentum in both DTC and wholesale. Europe declined 1% in the quarter due to last year’s distribution center transition, but first-half revenue grew mid-single digits. Singh said Europe’s DTC business grew 7%, and the company is encouraged by high single-digit wholesale pre-order growth for the second half.

Asia revenue increased 12%, with double-digit growth in both DTC and wholesale. Singh said performance was strong across markets, and Gass noted progress in China under new leadership.

The company also provided updates on operational initiatives. Singh said Levi Strauss completed the remap of Europe to an omnichannel distribution network, consolidating e-commerce fulfillment into distribution centers in Germany and the U.K. In the U.S., the company remains on track to transition its Hebron distribution center to Maersk by the beginning of the fourth quarter.

Levi Strauss also migrated Asia and Beyond Yoga onto its new global ERP platform, following North America. Europe and the remaining Latin American countries are expected to move to the platform by mid-2027. Singh said the ERP system is intended to unlock better data access, faster decision-making and the ability to scale AI and automation.

Management Cites Brand Momentum and Consumer Resilience During the call, Gass emphasized marketing initiatives including the company’s “Behind Every Original” campaign and collaborations tied to music, sports and fashion. She also discussed the company’s soccer-related product collaborations and a viral marketing moment involving Levi’s Stadium, which she said generated approximately 1 billion press impressions.

Beyond Yoga revenue rose 16%, led by e-commerce. Gass said the brand is expanding beyond traditional activewear into lifestyle categories such as casual pants, travelwear, linen, tops, sweaters and dresses. She said the company has fewer than 20 Beyond Yoga stores and is still learning from that format.

In response to analyst questions, management said the consumer remains resilient across value, core and premium price points. Signature, the company’s value-focused brand, grew at a low single-digit rate in the quarter and 9% in the first half. Gass said the company expects Signature to accelerate in the second half.

Singh said two-thirds of second-quarter revenue growth came from units and one-third from average unit retail, with the company expecting a more balanced contribution for the full year. He cited full-price selling, DTC growth, premium offerings such as Blue Tab and women’s category expansion as factors supporting average unit retail growth.

Gass said the company remains optimistic about the denim category and its broader move into head-to-toe denim lifestyle offerings. “We have more ways to win than we’ve ever had,” she said.

About Levi Strauss & Co. NYSE: LEVILevi Strauss & Co is a global apparel company best known for its denim jeans and casual wear. Founded in 1853 in San Francisco by Bavarian immigrant Levi Strauss, the company pioneered the modern blue jean with the introduction of rivet-reinforced work pants. Over its more than 160-year history, Levi Strauss has evolved into a lifestyle brand, offering a broad portfolio that includes denim for men, women and children, as well as tops, outerwear, footwear and accessories.

The company's flagship label, Levi's®, is recognized worldwide for its iconic styles such as the 501® Original Fit Jeans, while additional brands, including Dockers®, Target core metric, and Denizen® by Levi's, cater to diverse price points and consumer segments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Levi Strauss & Co. Right Now?Before you consider Levi Strauss & Co., you'll want to hear this.

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Levi’s NYSE: LEVI turnaround story is one that could be written about in books. The company, an endearing, entrenched, iconic legacy brand, has embraced the modern era, delved deeply into technological advancement, and is now experiencing a virtuous cycle tied to AI.

Levi Strauss & Co. Today

LEVI

Levi Strauss & Co.

$24.61 +0.24 (+0.98%)

As of 01:13 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$17.72▼

$25.58Dividend Yield2.27%

P/E Ratio15.70

Price Target$27.21

Indeed, Levi’s is now a retail AI story, as its direct-to-consumer (DTC) shift not only improved sales and margins but also enabled proprietary data, driven by a solid eCommerce presence, and data is what AI is all about.

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Now, Levi’s is capitalizing on its growing data set, strengthening its network as it leans into higher-margin business, loyalty membership, and comp store growth.

To fully comprehend the change, investors must consider where Levi’s was. Struggling with in-store merchandising and an obvious wholesaling failure, Levi's made the DTC shift, which unlocked a retail bottleneck.

Consumers who wanted Levi’s products couldn’t easily find them at 3rd-party retailers; DTC solved the issue.

With control over its stores, Levi’s can ensure product and merchandising quality while also realizing higher retail margins. Within that, digitalization enabled not only data collection but also full-scale merchandising—consumers no longer have to dig through a pile of messy, picked-through jeans to find the style and size they need; they are now within easy reach. And the impact on the business has been staggering.

Levi Strauss Accelerates Turnaround With Beat-and-Raise QuarterLevi Strauss posted a solid Q2, with revenue up 8% to $1.56 billion. This was an acceleration over the prior year, outperforming consensus by more than 540 basis points (bps) on strength across all markets, channels, and categories. DTC grew by 11%, underpinned by eCommerce, while wholesale grew at a more modest pace. Worth more than 50% of the revenue, DTC's growth was driven by a 6% comp and a 19% increase in eCommerce. Regionally, the Americas were strongest at up 9%, underpinned by a 5% gain in the U.S., while Asia grew by 10% and Europe by 4%.

Margin was another strength driven by the DTC business. The company posted improvements at the gross and operating levels, driving a 35 bps improvement in operating margin and a 70 bps gain in adjusted earnings before interest and taxes (EBIT). Bottom-line results reflect strength, with adjusted earnings per share (EPS) up 27% year over year (YOY) to 28 cents, 4 cents above MarketBeat’s reported analyst consensus.

As good as the Q2 results were, it is the guidance that will keep Levi’s market advancing this year. The company increased its targets for revenue, margin, and earnings, lifting the high ends and tightening the ranges.

Levi’s guidance aligns with consensus forecasts, affirming confidence, and is likely to be cautious. CEO Michelle Gass says the company is in the earliest phases of its DTC growth and has more ways to win than ever, including a larger addressable market.

Levi’s Raises Dividend, Signaling Confidence in OutlookLevi’s solid Q2 report was accompanied by a 14% increase in the dividend distribution. While the increase was not unexpected, the size was above average, signaling confidence in the outlook. Investors should consider distribution safety, which ranks well with a payout ratio below 40% and a robust growth trajectory. Future increases may not be as large but are likely, as are share buybacks. Q2 activity, including the impact of an accelerated share repurchase authorization, reduced the count by an average of 2.35%.

Overall MarketRank™94th Percentile

Analyst RatingModerate Buy

Upside/Downside9.6% Upside

Short Interest LevelHealthy

Dividend StrengthModerate

News Sentiment0.27 Insider TradingSelling Shares

Proj. Earnings Growth11.26%

See Full Analysis

Analysts responded optimistically but noted that the guidance failed to impress. Although solid in light of past results, analysts had hoped for more, setting the stage for a stock price correction. In this scenario, Levi’s may see a post-release stock price pullback, potentially moving as low as $22, but in the longer term, the forecasts remain very bullish.

The consensus of 16 analysts tracked by MarketBeat is a Moderate Buy, with an 81% Buy-side bias; no Sell ratings are tracked, and price targets have been rising. Consensus, which was up 35% YOY ahead of the release, forecasts a modest double-digit increase relative to the pre-release closing price, with the high end pointing to a fresh all-time high.

Institutional activity suggests the downside risks are limited as of early July. While the trailing 12-month activity includes significant selling in prior quarters, the balance reverted to accumulation in Q2 and has sustained a robustly bullish pace in early Q3, suggesting the Q2 strength was anticipated. The likely outcome is that any post-release price pullback will trigger more buying, underpinning technical support for this market. Levi’s biggest risks include tariff uncertainty and foreign exchange headwinds, but the company appears to be navigating the environment well.

Should You Invest $1,000 in Levi Strauss & Co. Right Now?Before you consider Levi Strauss & Co., you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Levi Strauss & Co. wasn't on the list.

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