Levi Strauss Reports 14.1% Revenue Growth to $1.742 Billion in Q1 Fiscal 2026

Levi Strauss & Co. reported a significant increase in financial performance for the first quarter of fiscal 2026, with net revenues reaching $1.742 billion, a 14.1% increase from $1.527 billion in the same period last year. The company's net income from continuing operations also rose to $177.1 million, compared to $140.2 million in the prior year, reflecting a 26.3% increase. This growth was attributed to higher sales across all regions and channels, particularly in direct-to-consumer (DTC) and wholesale segments, as well as a legal settlement gain of $33 million.

The company experienced a notable rise in gross profit, which increased to $1.078 billion, up 13.8% from $948 million in the previous year. However, the gross margin slightly decreased to 61.9% from 62.1%, primarily due to the impact of tariffs and increased selling, general, and administrative expenses (SG&A), which rose by 16.3% to $872 million. The operating income for the quarter was $198.7 million, a modest increase of 3.7% compared to the previous year.

In terms of strategic developments, Levi Strauss completed the sale of its Dockers® business, which was classified as discontinued operations. The final closing of the remaining Dockers® operations occurred on February 27, 2026, contributing to a gain on sale of $20.5 million. The company has also engaged in an accelerated share repurchase program, committing $200 million to repurchase its Class A common stock, which is expected to be completed by the third quarter of 2026.

Operationally, Levi Strauss reported a total of 1,232 company-operated stores across 38 countries as of March 1, 2026, with a focus on expanding its DTC channel, which accounted for 52% of total net revenues. The company noted that its international business, including Europe and Asia, represented 61% of total revenues, indicating a strong geographic diversification. The company also reported a favorable impact from currency translation, which contributed approximately $71 million to net revenues.

Looking ahead, Levi Strauss anticipates continued growth driven by its DTC-first strategy and ongoing investments in its logistics and distribution networks. However, the company remains cautious about macroeconomic pressures, including inflation and changing tariff regimes, which could impact consumer spending and operational costs. The company plans to maintain adequate liquidity and return capital to shareholders through dividends and share repurchases, while also focusing on strategic investments to support long-term growth.