Levi Strauss reports Q3 net revenue growth of 4 percent, raises outlook

US fashion group Levi Strauss & Co. (Levi Strauss) has reported net revenues of 1.6 billion dollars for the third quarter ended August 30, 2026, representing an increase of 4 percent on a reported basis and 5 percent on an organic basis compared to the same period in 2025.

Driven by strong growth across international operations and wholesale channels, the company delivered mid-single-digit overall top-line expansion. Direct-to-consumer (DTC) revenues grew 2 percent on a reported and organic basis, representing 45 percent of total net revenues in the quarter. DTC comparable sales remained flat, while e-commerce performance rose 10 percent on both reported and organic levels.

“Our third-quarter performance highlighted the power of our diversified portfolio and reinforced our confidence that we have the right strategies in place,” said Michelle Gass, chief executive officer (CEO) of Levi Strauss. “We saw strong growth in our international and wholesale businesses, and continued momentum across our lifestyle categories. While our direct-to-consumer business fell short of our internal expectations, we moved quickly to address the shortfall and are encouraged by the strength we are seeing heading into the holiday season, including in the US Based on the acceleration in recent trends, our DTC business is on track to deliver mid-single-digit growth in the fourth quarter.”

Performance across regional markets and brand portfolio

Regional revenue trends varied across global markets during the period. In the Americas, net revenues increased 4 percent on a reported basis and 2 percent organically, while reported revenues in the US fell 1 percent. European net revenues rose 4 percent on a reported basis and 5 percent on an organic basis. Asia generated the strongest regional expansion, with net revenues advancing 5 percent on a reported basis and 10 percent organically.

DTC reported revenues in the Americas grew 2 percent, though US DTC revenue decreased 1 percent. In Europe, DTC revenue declined 2 percent on a reported basis and 1 percent organically. Asia DTC revenue recorded an 8% gain on a reported basis and an 11 percent increase on an organic basis. Wholesale net revenues increased 6 percent on a reported and organic basis, supported by growth in all segments with notable strength in Europe and Asia. Brand brand Beyond Yoga registered a revenue increase of 9 percent on a reported and organic basis.

Updated fiscal 2026 outlook

Chief financial and growth officer Harmit Singh noted that the group made the strategic decision to reinvest a majority of its tariff refund benefit into the business during the third and fourth quarters to support future growth.

Reflecting confidence in operational trends, Levi Strauss raised its full-year profit guidance and announced plans to initiate a 100 million dollars accelerated share repurchase program. The company also declared a quarterly dividend of 0.16 dollars per share, representing a 14 percent increase compared to the prior year.

Reported net revenues growth for the full year is expected to be approximately 7 percent due to foreign exchange impacts, compared to the previous forecast of 7 percent to 7.5 percent. Organic net revenues growth is projected at approximately 6 percent, updated from the prior guidance range of 5.5 percent to 6 percent. Gross margin expectations have been raised to an increase of up to 130 basis points compared to the prior year, up from previous projections of 10 basis points.

Adjusted earnings before interest and taxes (EBIT) margin is expected to expand to approximately 12.1 percent, representing a 70 basis point increase year-over-year (YoY), compared to previous guidance of 12 percent expansion or 60 basis points YoY. Adjusted diluted earnings per share (EPS) has been raised to a range of 1.54 dollars to 1.56 dollars, up from 1.46 dollars to 1.52 dollars, which includes an approximate 0.04 dollars headwind from the higher tax rate.