Levi Strauss & Co (LEVI) Earnings Date & Reports

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. reports results for its fiscal second quarter ended May 31, 2026, a period that reflects ongoing efforts to shift toward a direct-to-consumer and denim lifestyle model. Recent quarters have shown steady revenue expansion amid broader apparel sector challenges, including shifting consumer spending and supply chain adjustments. This earnings release provides investors with updated visibility into demand trends across key regions, margin performance, and the company’s ability to execute its growth strategy amid economic uncertainty.

Reported Results

Levi Strauss & Co. reported net revenues of $1.562 billion for the second quarter, an 8% increase on a reported basis and 6% on an organic basis compared with the year-ago period. The Americas segment grew 9% reported, Europe rose 4% reported, and Asia advanced 10% reported. Direct-to-consumer revenues increased 11% reported, while wholesale revenues rose 5% reported. Adjusted diluted earnings per share reached $0.28, up 27% from $0.22 in the prior year, and diluted earnings per share from continuing operations were $0.24. Gross margin expanded 10 basis points to 62.7%. The company raised its full-year 2026 reported net revenue growth guidance to 7.0%-7.5% and adjusted diluted EPS range to $1.46-$1.52 while increasing the quarterly dividend by 14% to $0.16 per share.

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Market Reaction and Investor Sentiment

Despite beating consensus estimates on revenue and earnings, shares of Levi Strauss & Co. declined more than 5% in extended-hours trading on July 8, 2026. Investors appeared to focus on mixed regional organic growth, particularly softness in Europe, and broader market caution following the release. The company’s decision to raise full-year guidance and increase the dividend was viewed positively by many analysts, though the immediate price reaction reflected profit-taking and uncertainty around macroeconomic conditions.

Forward Outlook and Key Factors to Monitor

Levi Strauss & Co. raised its full-year outlook after delivering stronger-than-expected first-half results, signaling confidence in continued execution of its direct-to-consumer strategy. Investors will watch for sustained momentum in the Americas and Asia regions, where organic growth remained solid. Management highlighted gross margin expansion from lower product costs and pricing actions, offset partly by tariff and foreign exchange pressures.

Attention will also turn to direct-to-consumer comparable sales trends and e-commerce performance, which showed 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 updates on consumer demand across categories. Broader industry dynamics, including apparel spending trends and potential tariff impacts, remain important variables for the balance of the fiscal year ending November 29, 2026.

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