Levi Strauss raises FY26 outlook after strong first-quarter performance

Levi Strauss & Co has accrued its fiscal 2026 (FY26) guidance aft reporting first-quarter (Q1) results that surpassed its earlier projections, supported by double-digit gross growth.

For the 3 months ended 1 March 2026, the apparel radical delivered stronger-than-expected show crossed sales, margins and net per share, starring to an upward revision of its full-year outlook.

The institution present forecasts reported nett gross maturation of 5.5% to 6.5% for FY26, with integrated maturation expected successful the scope of 4.5% to 5.5%.

Its outlook assumes that US tariffs connected imports from China stay astatine 30% and astatine 20% for different regions.

It besides does not origin successful immoderate important worsening of macroeconomic conditions, inflation, proviso concatenation issues, tariffs oregon currency fluctuations.

The updated guidance reflects continuing operations pursuing the divestment of the Dockers business.

In Q1, the company’s reported nett revenues accrued 14% year-on-year to $1.7bn portion integrated maturation stood astatine 9%.

Levi Strauss president and CEO Michelle Gass said: “We delivered precise beardown fiscal show successful the archetypal 4th driven by broad-based maturation crossed channels, regions and categories.”

Europe was the strongest-performing region, signaling a 24% emergence successful reported revenues.

The institution reported that the Americas posted 9% growth, and Asia saw revenues summation by 13%.

Direct-to-consumer (DTC) income roseate 16% connected a reported ground and 10% organically, with maturation recorded crossed each regions.

E-commerce revenues climbed 21% reported, with DTC accounting for 52% of full nett revenues during the period.

Wholesale revenues were up 12% reported and 8% organically. Beyond Yoga revenues grew 23% connected some a reported and integrated basis.

Operating income reached $198.7m, compared with $191.6m successful the aforesaid 4th past year.

Net income roseate to $175.8m from $135m a twelvemonth earlier.

Diluted net per stock from continuing operations accrued to $0.45 from $0.35 portion adjusted diluted EPS roseate to $0.42 from $0.38.

Levi Strauss besides confirmed it has completed the merchantability of its Dockers business, with the last transaction closing connected 27 February 2026.

This follows an earlier woody covering US and Canada operations that was finalised connected 31 July 2025.

Separately, the institution said enforcement vice president and main fiscal and maturation serviceman Harmit Singh volition stay successful his relation until a successor is appointed.

He volition past determination into a peculiar advisor presumption earlier retiring, with a hunt for his replacement presently ongoing.

"Levi Strauss raises FY26 outlook aft beardown first-quarter performance" was primitively created and published by Retail Insight Network, a GlobalData owned brand.