Levi Strauss (LEVI) Delivers Solid Q2 Earnings with Revenue and EPS Growth
Key Takeaways
- Net revenues reached $1.562 billion, rising 8% year-over-year on a reported basis and 6% on an organic basis.
- Adjusted diluted earnings per share climbed 27% to $0.28, exceeding analyst expectations.
- Operating margin expanded to 7.8% and adjusted EBIT margin reached 9.0%, both improving from the prior year.
- The company raised full-year 2026 reported net revenue growth guidance to 7.0%-7.5% and adjusted diluted EPS outlook to $1.46-$1.52.
- Direct-to-consumer revenues grew 11% reported, with e-commerce up 19%, and the quarterly dividend increased 14%.
- Shares fell more than 5% in after-hours trading following the release despite the positive results.
Earnings Context and Why It Matters
Levi Strauss & Co. (LEVI) reported results for its fiscal second quarter ended May 31, 2026. This period captures the company’s ongoing shift toward a direct-to-consumer model with a stronger focus on denim as a lifestyle brand. Recent quarters have shown consistent revenue expansion even as the broader apparel sector faces shifting consumer priorities and supply-chain adjustments. The latest release gives investors clearer insight into demand trends by region, margin trends, and how well the company is executing its strategy in an uncertain economic environment.
Reported Results
Net revenues came in at $1.562 billion for the quarter, up 8% on a reported basis and 6% organically versus the year-ago period. The Americas segment advanced 9% reported, Europe rose 4% reported, and Asia grew 10% reported. Direct-to-consumer revenues increased 11% reported while wholesale revenues rose 5% reported. Adjusted diluted earnings per share reached $0.28, a 27% increase from $0.22 in the prior year, while diluted earnings per share from continuing operations were $0.24. Gross margin expanded 10 basis points to 62.7%. Management raised full-year 2026 reported net revenue growth guidance to 7.0%-7.5% and the adjusted diluted EPS range to $1.46-$1.52. The quarterly dividend was increased 14% to $0.16 per share. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and Investor Sentiment
Even though the company beat consensus estimates on both revenue and earnings, shares of Levi Strauss & Co. (LEVI) declined more than 5% in extended-hours trading on July 8, 2026. Investors appeared to focus on mixed regional organic growth, especially softness in Europe, along with broader market caution after the release. The decision to raise full-year guidance and increase the dividend received positive analyst commentary, yet the immediate price action suggested some profit-taking and lingering uncertainty about macroeconomic conditions.
Forward Outlook and Key Factors to Monitor
Levi Strauss & Co. (LEVI) raised its full-year outlook after delivering stronger-than-expected first-half results, which signals confidence in continued execution of the direct-to-consumer strategy. Investors will be watching for sustained momentum in the Americas and Asia, where organic growth remained solid. Management noted gross margin expansion driven by lower product costs and pricing actions, partly offset by tariff and foreign-exchange pressures.
Attention will also turn to direct-to-consumer comparable sales trends and e-commerce performance, which posted double-digit gains in the quarter. The company’s inventory reduction and strong liquidity position provide flexibility for share repurchases and dividend increases.
Upcoming catalysts include third-quarter results and further updates on consumer demand across categories. Broader industry dynamics, including apparel spending trends and potential tariff impacts, remain important variables through the fiscal year ending November 29, 2026.
Using AI Tools for Deeper Stock Analysis
As part of my regular research process, I turned to Tickeron’s AI Screener to quickly filter apparel and retail names by fundamentals, technical patterns, and AI-driven signals. The tool allows customization around industry, market cap, volatility, and performance metrics, which helps surface comparable ideas and assess relative strength without spending hours on manual screening. It has become a useful step when evaluating how a company like Levi Strauss fits within its sector.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
Momentum Indicator for LEVI turns positive, indicating new upward trend
LEVI saw its Momentum Indicator move above the 0 level on September 30, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned positive. In 65 of the 84 cases, the stock moved higher in the following days. The odds of a move higher are at 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LEVI's RSI Indicator exited the oversold zone, 29 of 38 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 76%.
The Moving Average Convergence Divergence (MACD) for LEVI just turned positive on September 18, 2026. Looking at past instances where LEVI's MACD turned positive, the stock continued to rise in 37 of 51 cases over the following month. The odds of a continued upward trend are 73%.
Following a +3.32% 3-day Advance, the price is estimated to grow further. Considering data from situations where LEVI advanced for three days, in 200 of 290 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 50-day moving average for LEVI moved below the 200-day moving average on October 06, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LEVI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
LEVI broke above its upper Bollinger Band on October 05, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LEVI entered a downward trend on October 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 20 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.355) is normal, around the industry mean (5.929). P/E Ratio (14.150) is within average values for comparable stocks, (22.594). Projected Growth (PEG Ratio) (0.020) is also within normal values, averaging (0.686). Dividend Yield (0.029) settles around the average of (0.017) among similar stocks. P/S Ratio (1.176) is also within normal values, averaging (0.827).
The Tickeron SMR rating for this company is 34 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 71 (best 1 - 100 worst), indicating slightly worse than average price growth. LEVI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 83 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LEVI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
How often do I check the performance of my portfolio?
Are There Any Valuable Tips for Using Stock Charts to Elevate Your Analytical Skills?
[Test] Automate Your Success: Explore Tickeron's Top 10 Stock Trading Robots Now!
Revolutionize Your Trading Strategy with Advanced Automated Algorithms
Best Oil Fracking Stocks
General Information
a manufacturer of jeans, casual apparel, and sportswear
Industry ApparelFootwear
Advertisement