Levi Strauss & Co. (NYSE:LEVI) delivered fourth-quarter results ahead of market expectations, buoyed by growing momentum in its direct-to-consumer business, but the shares slipped 1.1% after the company issued a fiscal 2026 earnings outlook that fell short of analyst forecasts.
The denim group reported adjusted earnings per share of $0.41 for the quarter, beating the consensus estimate of $0.39. Revenue rose to $1.8 billion, comfortably ahead of expectations of $1.71 billion, reflecting 1% reported growth and 5% organic growth year on year. Management pointed to “broad-based strength” across the business, including high-single-digit comparable sales growth in its direct-to-consumer channels.
“Over the past few years, we’ve taken bold steps toward becoming a DTC-first, head-to-toe denim lifestyle brand,” said Michelle Gass, President and CEO of Levi Strauss & Co. “We have narrowed our focus, improved operational execution and built greater agility across the organization.”
Despite the upbeat quarter, investor sentiment was weighed down by the outlook for the year ahead. Levi guided to fiscal 2026 earnings per share in the range of $1.40 to $1.46, below the analyst consensus of $1.48. The company said its forecast assumes mid-single-digit revenue growth and further expansion in adjusted EBIT margins.
The quarterly results capped what management described as a strong fiscal 2025, which delivered “accelerated revenue growth and margin expansion” as Levi continues to reposition the business toward a more direct-to-consumer, lifestyle-led model that extends beyond its core jeans offering.