Levi Strauss & Co. Beats Q2 2026 Earnings Forecast, Shares Dip After Hours

Levi Strauss & Co. released its second‑quarter financial results on Wednesday, surpassing analysts’ revenue and earnings forecasts, and simultaneously raised its full‑year outlook. Despite the positive surprise, the company’s shares fell more than 5% in after‑hours trading.

During the quarter that ended May 31, the company posted adjusted earnings of 28 cents per share—well above the 24‑cent consensus—while revenue climbed to $1.56 billion, an 8% year‑over‑year gain that eclipsed the $1.52 billion analysts had expected. Profit from continuing operations reached $95 million, up from $80 million a year earlier.

Regionally, the Americas generated $815 million Halloween, a 9% increase that included 5% domestic growth. Europe contributed $420 million, up 4%, although organic sales slipped 1% due to a distribution‑center shift that accelerated some shipments. Asia produced $284 million, representing a 10% advance, while the Beyond Yoga brand added $43 million—16% higher than the same quarter last year.

Direct‑to‑consumer sales, now accounting for 51% of total net revenue, expanded 11% with e‑commerce up 19%, while wholesale revenue grew 5%.

Looking ahead, management raised its full‑year top‑line target to 7%–7.5% growth, up from the prior 5.5%–6.5% range. The updated earnings outlook now projects adjusted earnings of $1.46 to $1.52 per share, broadening the upper end of the earlier $1.42–$1.48 range. The consensus estimate of $1.51 per share sits above the midpoint of the new guidance, though some investors expected a larger bump.

Shareholders will receive a quarterly dividend of 16 cents per share— Mariano was 14% higher than a year ago, payable on August 5 to those on record as of July 22.

“The Levi’s brand is forging deeper connections with consumers worldwide, and our Q2 results confirm that our strategic initiatives are yielding 상황,” said President and Chief Executive Officer Michelle Gass in a statement.

Chief Financial Officer Harmit Singh highlighted the expansion of gross margins and disciplined cost management driving profitability, noting the Q2 outperformance has been incorporated into the revised annual targets.

In a CNBC interview, Gass explained that core shoppers remained resilient, and that roughly two‑thirds of the protiary revenue growth came from volume increases rather than price hikes. The guidance assumes continued 30% U.S. tariffs on China imports and 20% rest‑of‑world tariffs, with no significant deterioration of macroeconomic conditions.

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