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
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LEVI saw its Stochastic Oscillator peaks and leaves the overbought zone
The Stochastic Oscillator for LEVI moved out of overbought territory on July 02, 2026. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 57 similar instances where the indicator exited the overbought zone. In of the 57 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for LEVI turned negative on July 08, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 of 62 cases within the following month. The odds of a continued downward trend are .
LEVI broke above its upper Bollinger Band on June 11, 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.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 25, 2026. You may want to consider a long position or call options on LEVI as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LEVI advanced for three days, in of 291 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 211 cases where LEVI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (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 (4.248) is normal, around the industry mean (6.371). P/E Ratio (17.919) is within average values for comparable stocks, (30.873). LEVI's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.122). Dividend Yield (0.023) settles around the average of (0.024) among similar stocks. P/S Ratio (1.494) is also within normal values, averaging (0.917).
The Tickeron SMR rating for this company is (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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LEVI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (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 (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 92, placing this stock worse than average.
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General Information
a manufacturer of jeans, casual apparel, and sportswear
Industry ApparelFootwear
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