Denim lifestyle retailer Levi Strauss (LEVI) delivered forecast-beating Q1 results. The company also raised FY26 guidance after reporting a ‘great start’ to the new financial year.
The upgraded outlook sent shares in the global jeanswear leader higher in aftermarket trading on Wall Street.
The American clothing company known for its Levi’s denim jeans brand demonstrated confidence in its turnaround strategy. The firm raised its FY26 sales, margin and earnings per share (EPS) guidance.
Unzipping an upgrade
Drawing confidence from a strong start to the year and robust global sales, Levi Strauss is now guiding for FY26 EPS in the $1.42 to $1.48 range. The company upgraded its organic revenue growth guidance to between 4.5% and 5.5%, and now forecasts an adjusted EBIT margin of around 12%.
For the quarter ended 1 March 2026, Levi Strauss reported a 14% jump in revenue to $1.74 billion, above the $1.65 billion Wall Street analysts were looking for.
The top-line performance was driven by organic growth across the Americas, Europe and Asia, as well as in the direct-to-consumer (DTC) business.
Q1 adjusted EPS came in at $0.42, above the analysts’ consensus of $0.37.
More ways to win
‘We delivered very strong financial performance in the first quarter driven by broad-based growth across channels, regions and categories,’ said CEO Michelle Gass.
‘Our evolution into a DTC-first denim lifestyle brand is allowing us to capture a much larger addressable market and deliver faster and more consistent growth,’ she added.
‘Today we are operating from a stronger foundation, executing with focus and intention, with more ways to win than ever before.’
Experienced retail and consumer goods executive Gass is driving a positive transformation of the company that invented the first blue jean.
Levi Strauss has brand strength and pricing power, as evidenced by gross margins north of 60% that have cushioned the impact of tariffs.
The company also returned $214 million to shareholders via dividends and share buybacks in Q1 alone.
But the consumer and supply chain outlook is uncertain. And there is also a risk that the denim fashion renaissance currently boosting sales peters out. As such, Levi Strauss is more a speculative than a strong buy in our view.
Read the press release here: https://investors.levistrauss.com/news/financial-news/news-details/2026/Levi-Strauss–Co–Reports-First-Quarter-Results/default.aspx
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