Levi Strauss Reports 4.3% Revenue Growth to $1.61 Billion in Q3 2026

Levi Strauss & Co. reported a solid financial performance for the third quarter of fiscal 2026, with net revenues reaching $1.61 billion, a 4.3% increase from $1.54 billion in the same period last year. The company's net income from continuing operations rose to $168.6 million, up 38.2% from $122.0 million in the prior year, driven by higher gross profit, which included a significant benefit of $78.6 million from IEEPA tariff refunds. The operating income also saw a notable increase of 32.8%, reaching $222.3 million, with an operating margin of 13.8%, compared to 10.8% in the previous year.

In the nine-month period ending August 30, 2026, Levi Strauss reported net revenues of $4.91 billion, an 8.8% increase from $4.52 billion in the same period of 2025. The net income from continuing operations for this period was $440.5 million, a 28.9% increase from $341.8 million in the prior year. The company attributed this growth to improved gross profit margins and effective cost management, despite higher selling, general, and administrative expenses.

Strategically, Levi Strauss has been focusing on its direct-to-consumer (DTC) channel, which accounted for 49% of total net revenues in the first nine months of 2026. The company operated 1,261 company-owned stores across 38 countries as of August 30, 2026, reflecting its commitment to expanding its retail footprint. The Beyond Yoga brand also contributed positively, with net revenues increasing by 16.1% year-over-year, driven by e-commerce growth and store expansion.

Operationally, the company reported a total employee headcount of approximately 10,000 as of August 30, 2026, a slight decrease from the previous year. The company has been undergoing restructuring initiatives, incurring $29 million in restructuring charges for the nine-month period, primarily related to severance and post-employment benefits. These efforts are part of a broader strategy to enhance operational efficiency and reduce costs.

Looking ahead, Levi Strauss expressed optimism about its growth trajectory, emphasizing its focus on expanding its DTC business and enhancing its product offerings. The company remains vigilant regarding macroeconomic factors, including inflation and trade policies, which could impact its operations. The management anticipates continued revenue growth and margin expansion, supported by strategic investments and a commitment to innovation in its product lines.