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The net revenue of the company increased by 4 per cent year on year (YoY) to $1.61 billion in Q3 ended August 30, 2026, while organic net revenues rose 5 per cent. The operating income climbed 33 per cent to $222.3 million and net income from continuing operations increased 38 per cent to $168.6 million. Adjusted earnings before interest and tax (EBIT) rose 36 per cent to $248.7 million.<\/p>\n
The company said it had moved to address direct-to-consumer (DTC) performance that fell short of internal expectations and anticipated improved momentum during the holiday season.<\/p>\n
\u201cOur third-quarter performance highlighted the power of our diversified portfolio and reinforced our confidence that we have the right strategies in place,\u201d said Michelle Gass, president and CEO, Levi Strauss & Co<\/em><\/strong>. \u201cWe saw strong growth in our international and wholesale businesses, and continued momentum across our lifestyle categories.\u201d<\/p>\n \u201cWe delivered another quarter of mid-single-digit revenue growth while navigating a dynamic operating environment,\u201d said Harmit Singh, chief financial and growth officer, Levi Strauss & Co<\/em><\/strong>. \u201cWe made the decision to redeploy a majority of our tariff refund benefit back into the business during Q3 and Q4 to support future growth.\u201d<\/p>\n Americas net revenues rose 4 per cent to $838.8 million, although US revenue declined 1 per cent. Europe revenue increased 4 per cent to $442.1 million, while Asia revenue rose 5 per cent to $292.8 million. On an organic basis, revenue grew 2 per cent in the Americas, 5 per cent in Europe and 10 per cent in Asia,\u00a0Levi Strauss said in a press release.<\/p>\n The operating income in the Americas increased 32 per cent to $251 million, while Europe recorded an 11 per cent increase to $101 million and Asia posted a 25 per cent rise to $42 million. Beyond Yoga revenue rose 9 per cent to $36 million, while its operating loss was unchanged at $5 million.<\/p>\n Wholesale revenue increased 6 per cent to $882.3 million, driven by growth across all segments, particularly in Europe and Asia. DTC revenue rose 2 per cent to $727.4 million and accounted for 45 per cent of quarterly revenue. E-commerce revenue grew 10 per cent, while DTC comparable sales were broadly flat. Levi’s brand revenue increased 4 per cent to $1.51 billion, and Levi Strauss Signature revenue rose 12 per cent to $66.9 million.<\/p>\n The gross profit rose to $1.07 billion from $951.6 million a year earlier, with gross margin expanding 450 basis points (bps) to 66.2 per cent. Operating margin improved to 13.8 per cent from 10.8 per cent, while adjusted EBIT margin increased to 15.5 per cent from 11.8 per cent.<\/p>\n Tariff refunds contributed 490 bps to both gross-margin and operating-margin expansion. Levi Strauss redeployed approximately 120 bps of the gross-margin benefit and 160 bps of the operating-margin benefit into promotion, marketing and other business-support measures during the quarter. Selling, general and administrative expenses rose to $835.9 million from $775.6 million, while adjusted expenses increased 6 per cent to $817.1 million.<\/p>\n Adjusted net income increased 39 per cent to $188.9 million, and adjusted diluted earnings per share (EPS) rose to $0.48 from $0.34. Diluted EPS from continuing operations increased to $0.43 from $0.31. The effective tax rate was 23.4 per cent, compared with 21.9 per cent a year earlier.<\/p>\n Cash and cash equivalents stood at $641.4 million at the end of the quarter, while total liquidity was approximately $1.5 billion. Inventory declined 3 per cent from a year earlier. Quarterly operating cash flow increased to $102.9 million from $24.8 million, while capital expenditure fell to $58.6 million from $64.2 million, resulting in adjusted free cash flow of $44.3 million compared with an outflow of $39.4 million a year earlier.<\/p>\n \t\tThe company raised its earnings and margin guidance for the year ending November 29, 2026, while narrowing its reported net revenue growth forecast to approximately 7 per cent due to foreign exchange effects, compared with its previous range of 7-7.5 per cent.<\/p>\n \t\tOrganic net revenue growth was projected at approximately 6.0 per cent, the upper end of the previous guidance range of 5.5-6 per cent. Gross margin was expected to increase by 130 basis points from the prior year, compared with the previously anticipated improvement of 10 basis points.<\/p>\n \t\tThe company also raised its adjusted EBIT margin outlook to approximately 12.1 per cent, representing a year-on-year expansion of 70 basis points. Previously, it had forecast a margin of 12.0 per cent, up 60 basis points.<\/p>\n \t\tAdjusted diluted EPS guidance was increased to $1.54-1.56 from $1.46-1.52. Both ranges included an estimated $0.04 headwind from a higher tax rate. The tax rate forecast remained unchanged at approximately 23 per cent, two percentage points higher than the prior year.<\/p>\n<\/p><\/div>\n Levi Strauss & Co raised FY26 earnings and margin guidance after Q3 revenue rose 4 per cent to $1.61 billion, with operating income up 33 per cent to $222.3 million.
The outlook incorporates International Emergency Economic Powers Act tariff refunds and the planned redeployment of approximately $60 million into the business during FY26, including about $35 million in the fourth quarter, and assumes current tariff rates remain in place.<\/p>\n
<\/p>\n Fibre2Fashion News Desk (SG) <\/p>\n
\n <\/p><\/div>\n\tAsia and wholesale support revenue growth<\/h3>\n
\tTariff refunds lift margins and earnings<\/h3>\n
\tLiquidity remains solid<\/h3>\n
\tLevi Strauss raises FY26 margin and EPS guidance<\/h3>\n
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\nInternational and wholesale gains led growth; organic revenue rose 10 per cent in Asia and wholesale revenue 6 per cent.
\nGross margin expanded 450 bps to 66.2 per cent on tariff refunds; adjusted EPS guidance rose to $1.54-1.56.<\/p>\n<\/div>\n