Levi Strauss & Co has increased its fiscal 2026 (FY26) guidance after reporting first-quarter (Q1) results that surpassed its earlier projections, supported by double-digit revenue growth.
For the three months ended 1 March 2026, the apparel group delivered stronger-than-expected performance across sales, margins and earnings per share, leading to an upward revision of its full-year outlook.
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The company now forecasts reported net revenue growth of 5.5% to 6.5% for FY26, with organic growth expected in the range of 4.5% to 5.5%.
Its outlook assumes that US tariffs on imports from China remain at 30% and at 20% for other regions.
It also does not factor in any significant worsening of macroeconomic conditions, inflation, supply chain issues, tariffs or currency fluctuations.
The updated guidance reflects continuing operations following the divestment of the Dockers business.
In Q1, the company’s reported net revenues increased 14% year-on-year to $1.7bn while organic growth stood at 9%.
Levi Strauss president and CEO Michelle Gass said: “We delivered very strong financial performance in the first quarter driven by broad-based growth across channels, regions and categories.”
Europe was the strongest-performing region, recording a 24% rise in reported revenues.
The company reported that the Americas posted 9% growth, and Asia saw revenues increase by 13%.
Direct-to-consumer (DTC) sales rose 16% on a reported basis and 10% organically, with growth recorded across all regions.
E-commerce revenues climbed 21% reported, with DTC accounting for 52% of total net revenues during the period.
Wholesale revenues were up 12% reported and 8% organically. Beyond Yoga revenues grew 23% on both a reported and organic basis.
Operating income reached $198.7m, compared with $191.6m in the same quarter last year.
Net income rose to $175.8m from $135m a year earlier.
Diluted earnings per share from continuing operations increased to $0.45 from $0.35 while adjusted diluted EPS rose to $0.42 from $0.38.
Levi Strauss also confirmed it has completed the sale of its Dockers business, with the final transaction closing on 27 February 2026.
This follows an earlier deal covering US and Canada operations that was finalised on 31 July 2025.
Separately, the company said executive vice president and chief financial and growth officer Harmit Singh will remain in his role until a successor is appointed.
He will then move into a special adviser position before retiring, with a search for his replacement currently ongoing.
