Levi's first-quarter earnings exceeded expectations, raising the full-year guidance, and the stock surged 5%.

2026-04-07 21:29:19

San Francisco — Levi Strauss & Co. (NYSE:LEVI) reported first-quarter results that beat analysts’ expectations. Adjusted earnings per share were $0.42, topping expectations by $0.05. Revenue came in at $1.7 billion, above the $1.65 billion market consensus.

The denim apparel maker’s revenue rose 14% on a reported basis, and grew organically 9% year over year. The company also raised its full-year 2026 fiscal year adjusted EPS guidance to a range of $1.42 to $1.48, from prior expectations of $1.40 to $1.46. The midpoint of $1.45 is slightly below analysts’ consensus of $1.46. After the news was released, the stock rose 5.5%.

President and CEO Michelle Gass said: “We delivered very strong financial performance in the first quarter, driven by broad-based growth across channels, regions and categories. Our transition to a direct-to-consumer-first denim lifestyle brand enables us to capture a larger addressable market and achieve faster, more consistent growth.”

Direct-to-consumer net revenue rose 16% on a reported basis and grew organically 10%, with direct-to-consumer comparable sales up 7%. The direct-to-consumer business accounted for 52% of total net revenue in the quarter. Wholesale net revenue rose 12% on a reported basis and grew organically 8%.

By geography, Americas net revenue rose 9% on a reported basis and grew organically 7%; Europe rose 24% on a reported basis and grew organically 10%. Asia net revenue rose 13% on a reported basis and grew organically 12%.

Adjusted EBIT margin was 12.5%, compared with 13.4% in the prior-year period, reflecting the impact of tariffs and a planned increase in advertising spend. Gross margin was 61.9%, versus 62.1% last year, mainly due to the impact of tariffs, partially offset by higher pricing and reduced promotional activity.

The company raised its full-year 2026 fiscal year reported net revenue growth guidance from 5%–6% to 5.5%–6.5%, and raised its organic net revenue growth guidance from 4%–5% to 4.5%–5.5%.

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