Levi Strauss & Co. (NYSE:LEVI) posted first-quarter results that came in above Wall Street expectations, reporting adjusted earnings per share of $0.42, exceeding forecasts by $0.05, while revenue reached $1.7 billion compared with analyst estimates of $1.65 billion.
Shares of the denim group climbed more than 8% in premarket trading on Wednesday as of 05:15 ET.
Company revenue rose 14% on a reported basis and 9% organically from the same quarter a year earlier. Levi also lifted its full-year fiscal 2026 adjusted EPS outlook to between $1.42 and $1.48, up from its previous guidance of $1.40 to $1.46. The midpoint of the revised range, $1.45, remains slightly below the analyst consensus estimate of $1.46.
“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. “Our evolution into a DTC-first denim lifestyle brand is allowing us to capture a much larger addressable market and deliver faster and more consistent growth.”
Direct-to-consumer (DTC) net revenue increased 16% on a reported basis and 10% organically, with comparable DTC sales rising 7%. DTC accounted for 52% of total net revenue during the quarter. Wholesale net revenue climbed 12% on a reported basis and 8% organically.
Analysts at Barclays reaffirmed their Overweight rating on Levi’s shares, noting that the company’s “fundamentals remain strong and encouraging with further proof points that its long-term strategic initiatives are working.”
Separately, analysts at Bank of America said the results demonstrated “broad-based sales strength with increasing commitment to flow-through.”
From a regional perspective, net revenue in the Americas rose 9% on a reported basis and 7% organically. Europe posted growth of 24% on a reported basis and 10% organically, while Asia saw net revenue increase 13% on a reported basis and 12% organically.
Adjusted EBIT margin came in at 12.5%, compared with 13.4% in the same period last year, reflecting the impact of tariffs and higher advertising spending. Gross margin was 61.9%, slightly lower than the 62.1% recorded a year earlier, mainly due to tariffs, partly offset by price increases and reduced promotional activity.
The company also raised its fiscal 2026 outlook for reported net revenue growth to a range of 5.5% to 6.5%, compared with its prior forecast of 5% to 6%. Its projection for organic net revenue growth was also increased to 4.5% to 5.5%, from the earlier range of 4% to 5%.