Levi Strauss raises FY margin, EPS outlook after strong Q3 results on international, wholesale growth; plans $100 million buyback
Levi Strauss raises FY margin, EPS outlook after strong Q3 results on international, wholesale growth; plans $100 million buyback
Overview
Apparel maker's Q3 net revenues rose 4% yr/yr, with growth led by international and wholesale
Adjusted diluted EPS for Q3 rose to $0.48 from $0.34 a year ago
Company to launch $100 mln accelerated share repurchase program
Outlook
Levi Strauss raises FY 2026 adj diluted EPS outlook to $1.54-$1.56
Company raises FY 2026 gross margin outlook to up 130 bps to prior year
Levi Strauss expects FY 2026 adj EBIT margin to expand to about 12.1%
Result Drivers
INTERNATIONAL AND WHOLESALE GROWTH - Co said international and wholesale segments drove revenue gains, while direct-to-consumer underperformed internal expectations
TARIFF REFUNDS - Margin expansion was largely attributed to tariff refunds, with a portion reinvested in the business
E-COMMERCE GROWTH - Co reported 10% growth in e-commerce net revenues
Company press release: ID:nBwFQyvGa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS |
| $0.48 |
|
Q3 EPS |
| $0.43 |
|
Q3 Gross Margin |
| 66.2% |
|
Q3 Adjusted EBIT Margin |
| 15.5% |
|
Q3 EBIT Margin |
| 13.8% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "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 31.5% above its October 6 closing price of $20.53
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago
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(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.)