Levi Strauss lifts 2026 outlook after logging strong DTC sales

Levi Strauss & Co

07/04/2026 21:21

Overview

US apparel maker's Q1 net revenues of $1.7 billion rose 14% on a reported basis yr/yr

Adjusted net income for Q1 beat analyst expectations

Company raised full-year 2026 outlook for revenue, margins and adjusted EPS

Outlook

Levi Strauss raises 2026 reported net revenue growth outlook to 5.5%-6.5%

Company expects 2026 adjusted diluted EPS of $1.42-$1.48

Levi Strauss sees 2026 gross margin flat to slightly up from prior yr

Result Drivers

DTC AND E-COMMERCE GROWTH - Direct-to-consumer net revenues rose 16% and e-commerce grew 21%, contributing to overall sales gains

REGIONAL BROAD-BASED GROWTH - Net revenues increased across all regions, with Europe up 24%, Asia up 13%, and Americas up 9%

TARIFFS AND ADVERTISING SPEND - Gross margin declined slightly due to tariffs, while operating margin was pressured by planned higher advertising costs

Company press release: ID:nBw6YnHN6a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
$0.42
Q1 EPS
$0.45
Q1 Adjusted Net Income
Beat
$167 mln
$145.49 mln (13 Analysts)
Q1 Gross Margin
61.90%
Q1 Adjusted EBIT Margin
12.50%
Q1 EBIT Margin
11.40%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories peer group is "buy"

Wall Street's median 12-month price target for Levi Strauss & Co is $27.00, about 37.4% above its April 6 closing price of $19.65

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)