During the quarter ended 31 May 2026, Levi Strauss & Co’s net revenues reached $1.6bn, up 8% year-on-year on a reported basis and 6% on an organic basis.
With these results, Levi Strauss & Co now anticipates reported net revenue growth of 7% to 7.5% for the year, an uplift from the previous range of 5.5% to 6.5%.
Organic growth guidance was also raised to between 5.5% and 6.0%.
The updated outlook includes projected adjusted diluted earnings per share (EPS) of $1.46 to $1.52 and adjusted earnings before interest and taxes (EBIT) margin of 12%, both higher than earlier guidance.
Key metrics from Levi's Q2
In the quarter, Levi Strauss & Co posted broad-based momentum across regions and channels. The Americas region posted a 9% rise in reported net revenues, with the US market jumping 5%.
Revenues in Europe increased by 4% on a reported basis, though the company noted a 1% organic decline due to last year’s shift in distribution centre shipments between quarters.
In Asia, net revenues rose 10% on a reported basis and 12% organically.
Levi Strauss & Co. reported net income from continuing operations of $95m, up from $80m in the prior-year quarter. Diluted EPS from continuing operations were $0.24, compared to $0.20 a year earlier.
Adjusted EBIT margin improved to 9.0%, up from 8.3% a year earlier. The gross margin rose by 10 basis points to 62.7%, which the company attributed to lower product costs and pricing actions, though tariffs and currency headwinds persisted.
Direct-to-consumer (DTC) operations were a significant driver, with DTC net revenues up 11% on a reported basis and 8% organically. E-commerce net revenues advanced 19% reported and 17% organically, with DTC comparable sales growth of 6%.
In total, DTC activities made up 51% of total net revenues for the quarter. Wholesale net revenues were up 5% and 3% on an organic basis.
On the profitability front, the second quarter operating margin reached 7.8%, compared with 7.5% in the same period last year.
Selling, general and administrative expenses rose to $843m from $791m, with adjusted SG&A at $838m, primarily due to increased selling expenses and impacts from foreign exchange
The full-year forecast assumes US tariffs on imports from China at 30% and from the Rest-of-World at 20%.
The company also stated that the raised outlook is dependent on stable macroeconomic trends and no significant escalation in inflation, supply chain disruptions, tariffs, or currency volatility.
Levi Strauss & Co. president and CEO Michelle Gass said: “The Levi’s brand is connecting with consumers around the world in more powerful ways than ever before, and our Q2 results are another proof point that our strategies are working and our team is executing. Our evolution into a DTC-first, denim lifestyle company—with a much larger addressable market—is translating to faster growth and higher profitability. While we are pleased with the progress, we are still in the early stages of our long-term growth journey, with more ways to win than ever before.”
