Levi Strauss Reports 8% Revenue Growth to $1.562 Billion in Q2 Fiscal 2026

Levi Strauss & Co. reported a notable increase in financial performance for the second quarter of fiscal 2026, with net revenues reaching $1.562 billion, an 8% increase from $1.446 billion in the same period last year. For the first six months of the fiscal year, revenues totaled $3.305 billion, up 11.2% from $2.973 billion in the prior year. The company's net income from continuing operations also rose significantly, reaching $94.8 million for the quarter, compared to $79.6 million a year earlier, and $271.9 million for the six-month period, up from $219.8 million.

The company experienced growth across all regions and channels, with the Americas segment generating $815.5 million in the second quarter, a 9% increase year-over-year. The Asia segment saw a 10.1% increase to $283.7 million, while Europe reported a more modest 4.2% increase to $420.2 million. Direct-to-consumer (DTC) sales accounted for 51% of total revenues, reflecting a shift towards this channel, which has been a strategic focus for the company.

Levi Strauss has also been active in restructuring its operations, incurring $13.5 million in restructuring charges during the quarter, primarily related to severance and post-employment benefits. The company is transitioning to a global shared services model and optimizing its distribution strategy, which has led to increased operational costs but is expected to enhance efficiency in the long run. The company’s total liabilities decreased to $4.355 billion from $4.570 billion, while stockholders' equity slightly declined to $2.272 billion from $2.279 billion.

In terms of strategic developments, Levi Strauss completed the sale of its Dockers® business, which was classified as discontinued operations, with the final closing occurring on February 27, 2026. This divestiture is part of the company's broader strategy to streamline operations and focus on its core brands, including Levi's® and Beyond Yoga®. The company has also initiated an accelerated share repurchase program, committing $200 million to buy back shares, which reflects its confidence in future growth and commitment to returning capital to shareholders.

Looking ahead, Levi Strauss anticipates continued revenue growth driven by its DTC strategy and expansion in international markets. However, the company remains cautious about external factors such as fluctuating tariffs, geopolitical tensions, and macroeconomic pressures that could impact consumer spending and operational costs. The company aims to maintain a strong liquidity position, with $849.3 million in cash and cash equivalents and $820.9 million in unused credit facility availability as of May 31, 2026.