Levi Strauss & Co. (NYSE:LEVI) Releases Quarterly Earnings Results, Beats Expectations By $0.12 EPS

Levi Strauss & Co. (NYSE:LEVI) announced its quarterly earnings data on Wednesday. The blue-jean maker reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.12, FiscalAI reports. The business had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.62 billion. Levi Strauss & Co. had a net margin of 8.83% and a return on equity of 27.89%. Levi Strauss & Co.’s quarterly revenue was up 4.3% on a year-over-year basis. During the same quarter last year, the company posted $0.34 earnings per share. Levi Strauss & Co. updated its FY 2026 guidance to 1.540-1.560 EPS.

Here are the key takeaways from Levi Strauss & Co.’s conference call:

• Third-quarter organic revenue rose 5%, with international sales up 8%, wholesale up 6%, and Asia delivering its third consecutive quarter of double-digit growth. Categories beyond denim bottoms contributed about half of top-line growth, led by strong tops and Blue Tab performance.
• Global DTC grew only 2% with flat comparable sales, as softer traffic in the U.S. and Europe—particularly an underperforming U.S. back-to-school campaign and warm European weather—pressured results. Management has pivoted toward low-rise fits, stronger marketing, promotions, and improved store execution, and expects DTC to return to mid-single-digit growth in Q4.
• Gross margin expanded 450 basis points to 66.2%, while adjusted EBIT margin increased to 15.5% and adjusted EPS rose 9% excluding the net tariff benefit. The company also plans an additional $100 million accelerated share repurchase and ended the quarter with inventory down 3%.
• Full-year organic revenue guidance was raised to approximately 6%, at the high end of the prior range, while reported growth was reduced to about 7% because of foreign exchange. Levi’s expects adjusted EBIT margin of approximately 12.1% and EPS of $1.54–$1.56, with roughly $60 million of tariff refunds redeployed into marketing, supply-chain improvements, and holiday promotions.
• The U.S. distribution-network transition has been more complex and costly than expected, compounded by a fire-related disruption, delaying anticipated savings until 2027. Harmit Singh is also departing as CFO after 14 years, with John Vandemore, formerly Skechers’ CFO, named as his successor.

Levi Strauss & Co. Stock Down 2.5%

Shares of NYSE:LEVI opened at $19.02 on Friday. Levi Strauss & Co. has a 12 month low of $17.72 and a 12 month high of $25.70. The company’s 50-day moving average price is $21.19 and its two-hundred day moving average price is $22.15. The company has a quick ratio of 0.98, a current ratio of 1.60 and a debt-to-equity ratio of 0.46. The firm has a market cap of $7.32 billion, a P/E ratio of 12.68, a P/E/G ratio of 1.29 and a beta of 1.32.

Levi Strauss & Co. Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 4th. Investors of record on Wednesday, October 21st will be given a dividend of $0.16 per share. The ex-dividend date is Wednesday, October 21st. This represents a $0.64 annualized dividend and a yield of 3.4%. Levi Strauss & Co.’s dividend payout ratio is 42.67%.

Analyst Upgrades and Downgrades

Several analysts have issued reports on LEVI shares. Jefferies Financial Group decreased their price target on shares of Levi Strauss & Co. from $27.00 to $25.00 and set a “buy” rating on the stock in a research report on Thursday, October 1st. Citigroup reduced their target price on shares of Levi Strauss & Co. from $25.00 to $22.00 and set a “neutral” rating for the company in a research note on Wednesday, September 30th. Wall Street Zen downgraded Levi Strauss & Co. from a “strong-buy” rating to a “buy” rating in a research report on Saturday, October 3rd. BNP Paribas Exane restated an “outperform” rating on shares of Levi Strauss & Co. in a research note on Friday. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $28.00 price target on shares of Levi Strauss & Co. in a report on Thursday. Twelve investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $26.15.

Insiders Place Their Bets

In other Levi Strauss & Co. news, EVP Harmit Singh sold 98,144 shares of the business’s stock in a transaction dated Thursday, July 23rd. The shares were sold at an average price of $24.22, for a total value of $2,377,047.68. Following the completion of the transaction, the executive vice president directly owned 98,747 shares of the company’s stock, valued at approximately $2,391,652.34. The trade was a 49.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.08% of the company’s stock.

Levi Strauss & Co. News Roundup

Here are the key news stories impacting Levi Strauss & Co. this week:

• Positive Sentiment: Adjusted third-quarter EPS was $0.48, well above the roughly $0.35–$0.36 analyst consensus, while revenue increased 4.3% year over year to $1.61 billion. Stronger margins, wholesale performance and international growth supported profitability. Levi Strauss Third-Quarter Results
• Positive Sentiment: Levi raised fiscal 2026 adjusted EPS guidance to $1.54–$1.56 from $1.46–$1.52, helped partly by approximately $80 million in tariff refunds. The company also expects about 4% organic revenue growth in the fourth quarter. Levi Strauss Raises Profit Guidance
• Positive Sentiment: Analysts remain encouraged by Levi’s response to changing denim preferences, including its shift toward looser-fitting jeans and use of real-time data. Needham reiterated a Buy rating with a $28 target, while JPMorgan and Barclays maintained Overweight ratings despite modest target reductions.
• Positive Sentiment: The company declared a quarterly dividend of $0.16 per share, equivalent to $0.64 annually and a reported yield of about 3.4%. Elevated call-option activity also suggested speculative bullish interest.
• Neutral Sentiment: Levi plans to reinvest much of the tariff refund into the business, including DTC initiatives and an AI shopping assistant, rather than broadly lowering prices. This could support longer-term growth but limits the immediate benefit to shareholders.
• Negative Sentiment: DTC revenue growth was only about 2% and U.S. demand remained soft, falling short of expectations. Analysts described the quarter as showing lower growth visibility despite signs that momentum may recover. Levi Strauss Under Pressure
• Negative Sentiment: Fiscal 2026 revenue guidance was set near $6.7 billion, below the approximately $6.8 billion consensus, and the reported revenue of $1.61 billion narrowly missed estimates. Wells Fargo cut its target to $20 and moved to Equal Weight, adding to investor caution.

About Levi Strauss & Co.

Levi Strauss & Co is an apparel company best known for its Levi’s brand of denim jeans and related clothing. Its product portfolio includes jeans, tops, bottoms, jackets, footwear, accessories and other casualwear for men, women and children.

Founded in 1853 and headquartered in San Francisco, California, the company also owns the Dockers, Beyond Yoga and Signature by Levi Strauss & Co brands. Levi Strauss & Co sells its products through company-operated stores, e-commerce platforms, wholesale partners and other distribution channels.

The company serves customers in North America, Europe, Asia and other international markets.