Levi Strauss & Co. reported third-quarter net revenue of approximately $1.6 billion, up 4% on a reported basis and 5% organically.
Operating margin was 13.8%, while adjusted EBIT margin reached 15.5%.
Diluted earnings per share from continuing operations were $0.43.
Adjusted diluted EPS reached $0.48.
Revenue in the Americas increased 4% on a reported basis and 2% organically, although U.S. revenue declined 1%.
European revenue increased 4% reported and 5% organically.
Asia revenue increased 5% reported and 10% organically.
Beyond Yoga revenue increased 9%.
Levi Strauss said its international and wholesale businesses delivered strong growth, while direct-to-consumer results were below internal expectations.
The company expects DTC revenue to return to mid-single-digit growth during the fourth quarter.
Management also elected to reinvest a majority of its tariff refund benefit into growth initiatives during the third and fourth quarters.
Levi Strauss plans to initiate a $100 million accelerated share repurchase program.
For fiscal 2026, the company now expects approximately 7% reported revenue growth and approximately 6% organic growth.
Adjusted EBIT margin is expected to expand to approximately 12.1%.
Adjusted diluted EPS guidance increased to $1.54 to $1.56 from the previous range of $1.46 to $1.52.
KEY QUOTES:
“Our third-quarter performance highlighted the power of our diversified portfolio and reinforced our confidence that we have the right strategies in place.”
Michelle Gass, President and CEO of Levi Strauss & Co.
“Reflecting confidence in our outlook, we are raising our full-year profit guidance and plan to initiate a $100 million accelerated share repurchase program.”
Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co.
