TCF POST Report
SAN FRANCISCO – Levi Strauss & Co. (NYSE: LEVI) has announced robust financial results for the second quarter ended May 31, 2026, underscoring the success of its strategic evolution into a Direct-to-Consumer (DTC) denim lifestyle leader.
The apparel giant posted an 8% increase in reported net revenues to $1.6 billion, with 6% growth on an organic basis, reflecting the global resonance of the Levi’s® brand.
“Our evolution into a DTC-first, denim lifestyle company—with a much larger addressable market—is translating to faster growth and higher profitability,” said Michelle Gass, President and CEO of Levi Strauss & Co. “While we are pleased with the progress, we are still in the early stages of our long-term growth journey.”
Strategic Performance Highlights
The company’s quarterly performance confirms the effectiveness of its priority on DTC channels and diversified market expansion:
- DTC Expansion: Direct-to-Consumer net revenues climbed 11% reported, now accounting for 51% of total revenue. This was anchored by a 19% surge in e-commerce performance.
- Regional Growth:
- Americas: Reported a 9% increase in revenues.
- Asia: Delivered strong momentum with a 10% reported increase (12% organic).
- Europe: Recorded a 4% increase in reported revenues.
- Brand Diversification: Beyond Yoga® continues to be a vital pillar of the lifestyle strategy, achieving a 16% increase in both reported and organic revenues.
- Wholesale Resilience: The wholesale segment demonstrated durability, posting a 5% increase in reported revenues.
Profitability and Financial Outlook
The shift toward a DTC-first model is demonstrably improving the company’s bottom line. Levi Strauss & Co. reported an adjusted EBIT margin of 9.0%, representing a 70-basis-point improvement year-over-year. Additionally, gross margin expanded to 62.7%, bolstered by strategic pricing actions and favorable product cost efficiencies.
