The net revenues for the quarter ended March 1, 2026, rose 14 per cent year on year (YoY) to $1.74 billion, while organic growth stood at 9 per cent. The company’s direct-to-consumer (DTC) segment remained a key driver, accounting for 52 per cent of total revenues and growing 16 per cent, with e-commerce sales up 21 per cent.
Levi Strauss & Co has reported strong Q1 2026 results, with net revenues rising 14 per cent YoY to $1.74 billion and organic growth at 9 per cent.
DTC remained a key driver, contributing 52 per cent of sales.
Profitability improved, with net income reaching $177 million.
Backed by broad-based regional growth, the company raised its full-year outlook.
“We delivered very strong financial performance in the first quarter driven by broad-based growth across channels, regions and categories,” said Michelle Gass, president and CEO of Levi Strauss.
She further said that the evolution into a DTC-first denim lifestyle brand is allowing the company to capture a much larger addressable market and deliver faster and more consistent growth. “Today we are operating from a stronger foundation, executing with focus and intention, with more ways to win than ever before,” added Gass.
“We are pleased to report first quarter revenue, margins and EPS above our guidance,” said Harmit Singh, chief financial and growth officer of the company.
Regionally, Europe led growth with a 24 per cent increase in reported revenues, followed by Asia at 13 per cent and the Americas at 9 per cent, Levi Strauss & Co said in a press release.
The Beyond Yoga brand also delivered strong momentum, with revenues rising 23 per cent.
The company’s profitability improved, with net income from continuing operations increasing to $177 million from $140 million a year earlier. Diluted earnings per share (EPS) rose to $0.45, while adjusted EPS stood at $0.42.
Gross margin remained relatively stable at 61.9 per cent, while selling, general and administrative (SG&A) expenses increased, largely driven by marketing investments and higher sales volumes.
“Our strategic transformation is translating into higher returns and more profitable growth, enabling us to convert more of our strong revenue growth into bottom-line profit. Our great start to the year in Q1 and positive quarter-to-date trends, give us the confidence to raise our full-year sales, margins and EPS guidance even as we remain prudent about the external environment,” added Singh.
On the strategic front, the company highlighted continued progress in its transition towards a DTC-first denim lifestyle model, which is enabling stronger consumer engagement and improved profitability.
Meanwhile, Levi Strauss has raised its full-year 2026 outlook, projecting reported revenue growth of 5.5 per cent to 6.5 per cent and adjusted diluted EPS in the range of $1.42 to $1.48. The guidance reflects confidence in sustained demand, despite ongoing macroeconomic uncertainties and tariff pressures.
The company also announced that Harmit Singh will retire following a planned transition, with a successor search currently underway.
Fibre2Fashion News Desk (SG)
