LEVI · Levi Strauss & Co.

Levi Strauss & Co. delivered a strong first quarter fiscal 2026, with net revenues increasing 14% to $1.74 billion, driven by broad-based growth across the Americas, Europe, and Asia. DTC net revenues grew 16% on a reported basis, comprising 52% of total net revenues, while wholesale revenues increased 12%. The company noted that its strategic transformation into a DTC-first denim lifestyle brand is enabling faster and more consistent growth. Adjusted diluted EPS of $0.42 exceeded guidance, though adjusted EBIT margin contracted 90 basis points to 12.5% due to the impact of tariffs and planned increases in advertising expenses related to the "Behind Every Original" campaign. Gross margin declined slightly to 61.9% primarily due to tariffs, partially offset by price increases. Management highlighted that the strong start to the year and positive quarter-to-date trends provide confidence to raise full-year guidance for net revenues, margins, and EPS. The company now forecasts reported net revenue growth of 5.5% to 6.5% and adjusted diluted EPS of $1.42 to $1.48 for fiscal 2026. In a significant leadership development, the company announced that Chief Financial and Growth Officer Harmit Singh will retire after a planned transition period, during which he will serve as Special Advisor once a successor is appointed. Additionally, the company returned $214 million to shareholders in the quarter through dividends and an accelerated share repurchase program.