Key Takeaways:
- Levi Strauss Q2 revenue rose 4.8% to $1.52 billion, matching estimates
- Full-year guidance raised for the second time this fiscal year
- Direct-to-consumer and omnichannel strength drove broad-based growth
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Levi Strauss raises guidance after Q2 revenue rises 4.8%
Levi Strauss & Co. reported second-quarter fiscal 2026 revenue of $1.52 billion, up 4.8% from a year earlier and in line with the consensus estimate, as the denim maker benefited from expanded product offerings and a strengthened direct-to-consumer business.
"The results reflect the strength of our brands and the success of our strategic initiatives," management said on the earnings call. Adjusted earnings per share of 24 cents rose 9.1% year over year, matching analyst forecasts. The company has now beaten earnings estimates in each of the past four quarters, with an average surprise of 21.4%.
By region, Americas revenue reached $785 million, up 4.9% year over year. Europe contributed $424 million, a 5.2% increase, while Asia posted $275 million, up 6.6%. The company's omnichannel capabilities, including buy-online-pick-up-in-store and same-day delivery, supported growth across all three regions. Management said mitigation efforts had fully offset tariff impacts during the quarter.
Levi Strauss raised its full-year guidance for the second time this fiscal year, with management expressing confidence in its operational momentum. The company had previously guided for second-quarter reported revenue growth of 4% to 5% and organic growth of 3% to 4%, with an adjusted EBIT margin of 8% to 9%. The company's premium product expansion, targeting higher-income consumers alongside value-oriented options, has helped broaden its customer base.
Shares of Levi Strauss have gained 14.6% over the past six months, outperforming the retail-apparel industry, which declined 10% over the same period. The stock trades at 15.3 times forward earnings, a premium to the industry average of 14.3 times but below its five-year high of 22.9 times. Peer companies such as Tapestry Inc. and Ralph Lauren Corp. also trade at similar valuation multiples.
The guidance raise shows management expects demand trends to continue strengthening. Investors will watch the company's next quarterly report for further updates on margin expansion and the trajectory of its direct-to-consumer business.
This article is for informational purposes only and does not constitute investment advice.
