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FinanceLevi Strauss beats Q2 expectations, raises full-year guidance and dividend
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Levi Strauss & Co. reported fiscal second-quarter results that exceeded Wall Street expectations, with adjusted earnings per share of $0.28 versus $0.24 expected and revenue of $1.56 billion versus $1.52 billion expected. The denim maker raised its full-year adjusted EPS guidance to a range of $1.46-$1.52 (up from $1.42-$1.48) and increased its revenue growth outlook to 7%-7.5% (up from 5.5%-6.5%). CEO Michelle Gass attributed the strong performance to resilient consumer demand across core Levi's, Signature, and premium Blue Tab segments, noting that about two-thirds of sales growth came from unit sales rather than price increases. The company also raised its dividend, reflecting confidence in sustained demand despite higher gas prices.
Source report
A view of Levi Strauss & Co. headquarters on July 8, 2026 in San Francisco, California. Heather Diehl | Getty Images
Levi Strauss beat Wall Street's second-quarter expectations on both the top and bottom lines on Wednesday, prompting the retailer to raise its full-year guidance and increase its dividend.
Updated Guidance
The denim maker now expects full-year adjusted earnings per share (EPS) to be between $1.46 and $1.52, up from the prior range of $1.42 to $1.48. At the high end, this exceeds analyst expectations of $1.50 per share, according to LSEG.
Levi also raised its revenue outlook, now forecasting full-year sales growth of 7% to 7.5%, compared to the previous range of 5.5% to 6.5%. This is ahead of the 6.6% growth expected by analysts, per LSEG. Finance Chief Harmit Singh noted that roughly half of this growth is expected to come from higher prices, with the other half driven by unit sales.
Second-Quarter Results vs. Wall Street Expectations
Based on a survey of analysts by LSEG:
- Adjusted earnings per share: 28 cents vs. 24 cents expected
- Revenue: $1.56 billion vs. $1.52 billion expected
Key Financial Highlights
- Reported net income: $87.3 million, or 22 cents per share, for the quarter ended May 31, compared with $67 million, or 17 cents per share, in the same period last year.
- Sales: Rose to $1.56 billion, an increase of approximately 8% from $1.45 billion a year earlier.
CEO Commentary
In an interview with CNBC, CEO Michelle Gass said the company's core consumer remains resilient, even amid higher gas prices. She noted that about two-thirds of the quarter's sales growth came from unit sales—not just higher prices—giving the company confidence to raise both its guidance and dividend.
"Our demand remains healthy," said Gass. "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."
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Levi Strauss beats Q2 estimates, raises guidance and dividend amid strong demand