Levi Strauss beats Q2 estimates, raises full-year outlook and dividend

Levi Strauss & Co (NYSE:LEVI) reported 2nd 4th results that topped Wall Street expectations, driven by higher gross and earnings, portion raising its full-year gross and net guidance and expanding its quarterly dividend.

The apparel institution reported adjusted net of $0.28 per diluted stock for the 4th ended May 31, up of analysts' expectations of $0.24.

Revenue roseate 8% twelvemonth implicit twelvemonth to $1.56 billion, exceeding the statement estimation of $1.52 billion. On an integrated basis, nett gross accrued 6%.

Operating borderline improved to 7.8% from the anterior year, portion adjusted EBIT borderline expanded 70 ground points to 9.0%. Diluted net per stock from continuing operations accrued 20% twelvemonth implicit twelvemonth to $0.24, and adjusted diluted EPS roseate 27% to $0.28.

Levi's CEO Michelle Gass said the marque continued to summation traction with consumers arsenic the institution executed its strategy to grow its direct-to-consumer concern and broader manner offerings.

"While we are pleased with the progress, we are inactive successful the aboriginal stages of our semipermanent maturation journey, with much ways to triumph than ever before," Gass said.

During the quarter, direct-to-consumer gross accrued 11% connected a reported basis, with e-commerce income rising 19%. DTC represented 51% of full nett gross successful the quarter. Wholesale gross accrued 5%.

By region, gross accrued 9% successful the Americas, 4% successful Europe connected a reported basis, and 10% successful Asia. Beyond Yoga gross grew 16%.

Following its first-half performance, Levi Strauss raised its fiscal 2026 outlook. The institution present expects reported nett gross maturation of 7.0% to 7.5%, up from its erstwhile forecast of 5.5% to 6.5%, and integrated gross maturation of 5.5% to 6%, compared with anterior guidance of 4.5% to 5.5%.

The institution besides accrued its adjusted diluted EPS forecast to a scope of $1.46 to $1.52 from its erstwhile outlook of $1.42 to $1.48.

It present expects gross borderline to amended by up to 10 ground points twelvemonth implicit twelvemonth portion maintaining its anticipation for an adjusted EBIT borderline of astir 12%.

Levi Strauss said its guidance assumes US tariffs connected imports from China stay astatine 30% and tariffs connected imports from the remainder of the satellite stay astatine 20%.

Shares of Levi Strauss were up 1% pursuing the report.