Levi Strauss (LEVI) reported stronger-than-expected results for the second quarter of fiscal 2026, topping Wall Street estimates on both the top and bottom lines and signaling that demand remains resilient. The denim maker raised its full-year guidance and increased its quarterly dividend, underscoring improving momentum across its core brands.
For the quarter ended May 31, Levi’s posted revenue of $1.56 billion, up about 8% from a year ago, and net income of $87.3 million, or 22 cents per share, versus $67 million, or 17 cents per share, a year earlier. Analysts surveyed by LSEG had expected earnings of 24 cents a share on revenue of about $1.52 billion. The company said about two-thirds of the quarterly sales growth came from higher unit volumes in addition to price increases, highlighting a balanced lift in demand.
Management raised its full-year outlook, now targeting adjusted earnings per share of $1.46 to $1.52, up from a previous range of $1.42 to $1.48. The higher end of the range would exceed the prior consensus of about $1.50 per share. Net sales are expected to rise 7% to 7.5%, up from 5.5% to 6.5%. Harmit Singh, Levi’s chief financial officer, attributed the lift to a mix of higher prices and stronger unit sales.
CEO Michelle Gass noted that Levi’s core consumer remains resilient even amid higher fuel costs, and she pointed to healthy demand across key segments, including Levi’s and the brand’s signature lines, as well as the company’s newer premium blue tab.
Despite the upbeat results, shares traded lower in extended hours after the announcement, reflecting a mixed briskness among investors as the market digests earnings and forward guidance.
The quarter’s performance was supported by continued strength in Levi’s broad consumer base, with activity spanning basic products to higher-margin premium lines, reinforcing the company’s confidence to lift dividends and raise its annual outlook.
