Levi Strauss raised its outlook for the fiscal year on Wednesday after posting quarterly results that outpaced analyst expectations, signaling continued consumer demand for its denim and related apparel despite broader macroeconomic uncertainty. The San Francisco-based jeans maker reported top-line growth across regions and lifted the ranges for both net revenue and adjusted earnings per share for fiscal 2026.
Quarterly performance and guidance
For the quarter ended May 31, Levi Strauss recorded net revenue of $1.56 billion, an 8% increase from the prior-year period. That figure surpassed analysts' estimates of $1.52 billion. Adjusted earnings equaled $0.28 per share, above the $0.24 consensus.
Following the quarter, the company increased its fiscal 2026 net revenue growth forecast to a range of 7.0% to 7.5%, up from a prior outlook of 5.5% to 6.5%. It also raised its adjusted earnings-per-share guidance to a range of $1.46 to $1.52, compared with its earlier projection of $1.42 to $1.48. Market expectations compiled by LSEG show analysts on average expect a 6.6% revenue rise to $6.70 billion.
Drivers of the rebound
Levi cited sustained sales of denim along with dressier casual apparel, including baggy and loose-fitting silhouettes, that have been particularly popular with Gen Z shoppers. The company has broadened its assortment beyond jeans into categories such as dresses, skirts and tops while prioritizing growth in its higher-margin direct-to-consumer channel. Management attributes these initiatives to rebuilding momentum and achieving consecutive quarterly revenue increases over the past two years.
"Another proof point that our strategies are working and our team is executing," CEO Michelle Gass said in a statement.
Gass added that the company's shift to a DTC-first orientation and its positioning as a denim lifestyle brand with a larger addressable market are translating into faster growth and improved profitability.
Marketing and cultural relevance
Levi has leaned on marketing investments and high-profile partnerships to maintain cultural relevance with younger consumers. The company drew attention with a campaign connected to FIFA's temporary removal of branding at Levi's Stadium during World Cup preparations; that initiative became a global campaign that generated millions of social-media views, underscoring management's efforts to keep the brand resonant.
Supply chain and sourcing
To mitigate tariff pressures, Levi has diversified its sourcing footprint away from China, Bangladesh and Cambodia. The company did not quantify the shift in this update but noted it as part of its broader supply strategy.
Executive transition and regional note
In April, Levi said it was seeking a replacement for finance chief Harmit Singh, who will retire after about 13 years in the role and remain with the company until a successor is named. Management has also characterized the company's Middle East business as representing less than 1% of total sales and primarily distribution; Singh said earlier this year that current regional disruptions had no significant impact on Levi's results.
Geographic performance and retail backdrop
Regionally, Levi reported a 9% sales increase in the Americas, a 4% rise in Europe and a 10% jump in Asia for the quarter. Those gains come amid an industry-wide environment in which many retailers are flagging cautious consumer spending and uneven demand for non-essential goods, particularly apparel.
Gap and American Eagle Outfitters, for example, cited areas of softness in parts of their women's apparel assortments earlier in the year, noting weaker demand for dresses and bottoms that has weighed on sales growth.
Outlook
Levi's raised guidance reflects management's confidence in its assortment expansion, direct-to-consumer emphasis and marketing investments, which have collectively supported recent top-line momentum. The company's upgraded fiscal 2026 ranges for net revenue and adjusted EPS align with a quarter that exceeded analyst estimates and a strategy the firm says is restoring growth and profitability.
Summary
Levi Strauss beat sales and adjusted earnings estimates for the quarter ended May 31 and raised its full-year revenue and EPS guidance. Growth was fueled by denim and dressier casual categories, higher-margin DTC sales and an expanded apparel assortment, with management citing continued traction among younger shoppers and successful marketing initiatives.