Levi Strauss Q2 2026 earnings beat, stock falls after hours

Levi Strauss & Co. reported second-quarter results connected Wednesday that topped expert expectations connected gross and earnings, and the institution raised its full-year outlook — yet its banal fell much than 5% successful after-hours trading.

For the 4th that closed May 31, the institution delivered adjusted net of 28 cents per share, clearing the 24-cent statement estimate, CNBC reported. Sales reached $1.56 billion, an 8% year-over-year summation that came successful up of the $1.52 cardinal analysts had projected. Profit from continuing operations totaled $95 million, compared with $80 cardinal successful the year-ago period.

On a determination basis, the Americas posted $815 cardinal successful sales, a 9% summation that included 5% maturation domestically. Europe reached $420 million, up 4%, though integrated income successful that portion slipped 1% due to the fact that a organisation halfway displacement successful the prior-year play had pulled guardant immoderate shipments. Asia contributed $284 million, a 10% advance. The Beyond Yoga statement added $43 million, finishing 16% higher than the aforesaid 4th past year.

The company's direct-to-consumer channel, present representing 51% of full nett revenue, expanded 11%, with e-commerce up 19%. The wholesale concern grew 5%.

Looking up to the afloat fiscal twelvemonth done November 29, absorption updated its top-line maturation people to betwixt 7% and 7.5%, lifting the erstwhile 5.5%-to-6.5% range. On the bottommost line, the updated yearly forecast calls for adjusted net of $1.46 to $1.52 per share, widening the apical extremity of the anterior $1.42-to-$1.48 outlook. At $1.51 per share, the expert statement sat supra the midpoint of the caller net range, and The Wall Street Journal reported that immoderate investors had anticipated a much important increase.

Shareholders volition besides person a quarterly dividend of 16 cents per stock — 14% much than a twelvemonth agone — with outgo scheduled for August 5 to those connected grounds arsenic of July 22.

"The Levi's marque is connecting with consumers astir the satellite successful much almighty ways than ever before, and our Q2 results are different impervious constituent that our strategies are moving and our squad is executing," president and main enforcement serviceman Michelle Gass said successful a statement.

In a statement, CFO Harmit Singh pointed to widening gross margins and choky power implicit costs arsenic the factors underpinning stronger profitability, and said the afloat outperformance from the 2nd 4th has been folded into the revised yearly targets.

Speaking with CNBC, Gass described the brand's halfway shoppers arsenic holding up well, and said that measurement gains — alternatively than terms increases — accounted for astir two-thirds of the quarter's gross growth. The company's guidance assumes U.S. tariffs connected imports from China stay astatine 30% and rest-of-world tariffs stay astatine 20%, with nary important worsening of macroeconomic conditions.