Levi Strauss Crushes Q2 Expectations, Lifts Full-Year Guidance and Dividend Amid Resilient Demand

Last updated: July 9, 2026 7:18 am

3 weeks ago

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Levi Strauss & Co. outperformed Wall Street’s second-quarter earnings and revenue estimates, prompting the company to boost its full-year financial guidance and dividend. The denim maker reported adjusted EPS of 28 cents and revenue of $1.56 billion, both exceeding forecasts, fueled by strong consumer demand and increased unit sales. Despite the strong results, the company’s shares experienced a post-announcement decline.

Levi Strauss & Co. (LEVI) delivered a stellar financial performance in its second fiscal quarter, handily surpassing Wall Street’s revenue and earnings forecasts. This strong showing has prompted the iconic denim maker to raise its full-year financial guidance and increase its shareholder dividend.

A view of Levi Strauss & Co. headquarters on July 8, 2026, in San Francisco, California. Heather Diehl | Getty Images

The company now projects full-year adjusted earnings per share (EPS) to range between $1.46 and $1.52, an upward revision from its previous forecast of $1.42 to $1.48. Notably, the high end of this new range, $1.52, exceeds the LSEG analyst consensus of $1.50 per share.

Alongside the boosted EPS outlook, Levi Strauss also elevated its full-year sales growth projection. The retailer now anticipates revenue to climb between 7% and 7.5%, an increase from the earlier range of 5.5% to 6.5%. This updated forecast also surpasses LSEG's expectation of 6.6% growth. Finance chief Harmit Singh clarified that approximately half of this projected growth is expected to come from higher pricing, with the remainder driven by an increase in unit sales.

For the second fiscal quarter, which concluded on May 31, Levi's reported results that comfortably beat analyst expectations, based on LSEG surveys:

Adjusted Earnings Per Share: 28 cents vs. 24 cents expected
Revenue: $1.56 billion vs. $1.52 billion expected

Despite these robust results, Levi's shares saw a dip of more than 5% in extended trading following the announcement.

During the three-month period, the company’s reported net income reached $87.3 million, or 22 cents per share, a significant improvement from $67 million, or 17 cents per share, in the prior year. Total sales increased by approximately 8% year-over-year, climbing to $1.56 billion from $1.45 billion.

In an interview with CNBC, CEO Michelle Gass highlighted the enduring strength of the company's core consumer base, even in the face of economic challenges like rising gas prices. Gass emphasized that roughly two-thirds of the quarter’s sales growth was attributable to increased unit sales, rather than solely price adjustments, which instilled confidence in the decision to raise both guidance and the dividend.

"Our demand remains healthy," Gass stated. "We're seeing strength across our key segments of consumers, so we have our core Levi's, but we're also seeing strength in signature, as well as our new premium blue tab."