Levi Strauss & Co. Cls A
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.74%.
Did LEVI Beat Earnings? Q2 2026 Results
Levi Strauss & Co. delivered a strong second quarter for fiscal 2026, beating Wall Street expectations for the fourth consecutive quarter as the denim maker's shift toward a direct-to-consumer model continued to pay off. The company posted adjusted diluted EPS of $0.28, clearing the $0.24 consensus estimate by 16.67%, while revenue climbed 8.0% year-over-year to $1.56 billion. The clearest driver of the outperformance was DTC momentum, with that channel now accounting for 51% of total net revenues and growing 11% on a reported basis, while e-commerce surged 19%. Gross margin edged up 10 basis points to 62.7%, supported by lower product costs and pricing actions even as tariffs and foreign exchange created headwinds. Growth was broad-based, with the Americas rising 9%, Asia up 10%, and Beyond Yoga contributing 16% growth. Management raised its full-year guidance, now expecting reported revenue growth of 7.0% to 7.5% and adjusted diluted EPS in the range of $1.46 to $1.52, reflecting confidence in the DTC strategy despite a roughly $0.04 headwind from a higher anticipated tax rate. At least one analyst responded by raising their price target on the stock.
- DTC channel comprised 51% of total net revenues, growing 11% on a reported basis
- E-commerce grew 19% on a reported basis and 17% on an organic basis
- DTC comparable sales growth of 6%
- Gross margin expanded 10 basis points to 62.7% driven by lower product costs and pricing actions
- Broad-based growth across markets, channels and categories
- Beyond Yoga brand grew 16%
- Total inventories decreased 7% on a dollar basis year-over-year
“The Levi's® brand is connecting with consumers around the world in more powerful ways than ever before, and our Q2 results are another proof point that our strategies are working and our team is executing.”
Levi Strauss CEO, on the earnings call
Forward Guidance & Outlook
Levi Strauss raised its full-year fiscal 2026 guidance across all key metrics. Reported net revenues growth is now expected at 7.0% to 7.5% (up from 5.5% to 6.5%), organic net revenues growth at 5.5% to 6.0% (up from 4.5% to 5.5%), and gross margin raised to up 10 basis points to prior year (previously flat to slightly up). Adjusted EBIT margin is expected to expand to 12%, up 60 basis points to prior year (previously approximately 12%). Adjusted diluted EPS is raised to $1.46 to $1.52 (from $1.42 to $1.48), which includes an approximate $0.04 headwind from a higher tax rate. The effective tax rate is expected at approximately 23%, 2 points higher than prior year. Guidance assumes U.S. tariffs on imports from China remain at 30% and rest-of-world at 20%, and no significant worsening of macroeconomic pressures.
LEVI YoY Financials
LEVI Revenue by Segment
LEVI Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.