Levi Strauss & Co. delivered a standout start to fiscal 2026, reporting net revenues of $1.7 billion for Q1, up 14% on a reported basis and 9% on an organic basis versus Q1 2025. Revenue, margins, and earnings per share all came in above guidance, prompting the company to raise its full year outlook across every key financial metric.
Growth Across Every Region and Channel
The Q1 results reflected broad based momentum across geographies. Europe led the way with 24% reported revenue growth, followed by Asia at 13% and the Americas at 9%. Direct to consumer net revenues grew 16% on a reported basis, with ecommerce climbing 21% and DTC comparable sales growth reaching 7%. DTC now represents 52% of total net revenues, a meaningful milestone for a brand that has been deliberately shifting toward a more direct relationship with its consumers. Beyond Yoga® also delivered a strong quarter, posting 23% growth on both a reported and organic basis.
Profitability and Shareholder Returns
Diluted EPS from continuing operations reached $0.45, up from $0.35 in Q1 2025, while adjusted diluted EPS came in at $0.42 versus $0.38 in the prior year. Gross margin held steady at 61.9%, despite absorbing tariff headwinds, partially offset by price increases and reduced promotional activity. The company returned $214 million to shareholders in Q1, a 163% increase over the prior year, including a $200 million accelerated share repurchase program and dividends of $0.14 per share.
What the CEO Said
Michelle Gass, President and CEO of Levi Strauss & Co., said, “We delivered very strong financial performance in the first quarter driven by broad-based growth across channels, regions and categories. 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.”
A Cleaner Portfolio and a Leadership Transition
The results also reflect the completion of two significant portfolio moves. Levi Strauss completed the full sale of the Dockers® intellectual property and operations, with the final closing on February 27, 2026, allowing management to concentrate fully on its core Levi’s® and Beyond Yoga® brands. Separately, the company announced that Harmit Singh, Executive Vice President and Chief Financial and Growth Officer, will retire following a planned transition, with a search for his successor now underway.
A Stronger Full-Year Outlook
Levi Strauss raised its fiscal 2026 guidance across the board. Reported net revenue growth is now expected at 5.5% to 6.5%, up from the prior range of 5% to 6%. Adjusted diluted EPS guidance was lifted to $1.42 to $1.48, up from $1.40 to $1.46, and adjusted EBIT margin is now expected to expand to approximately 12%. The guidance assumes US tariffs on imports from China remain at 30% and the rest of the world at 20%, reflecting a prudent approach to an uncertain external environment, even as the underlying business continues to strengthen.
