Levi Strauss & Co.
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsLevi Strauss & Co. is a global apparel company selling denim and other clothing under the Levi's, Levi Strauss Signature, and Beyond Yoga brands, in the midst of divesting its Dockers business.
What they do
Levi Strauss & Co. designs, markets, and sells jeans, casual and dress pants, tops, shorts, jackets, and related accessories globally. Products are sold through third-party retailers, franchisees, company-operated stores, and e-commerce sites in roughly 120 countries and about 50,000 retail locations. The business is organized into Americas, Europe, and Asia reportable segments under the Levi's Brands business, with Beyond Yoga managed separately. The company sold its Dockers U.S. and Canada operations in July 2025 and expects to complete the sale of remaining Dockers operations around February 27, 2026.
Revenue drivers
- Americas — Largest segment; Q2 2026 net revenues were $815 million, up 9% reported (7% organic), with the U.S. up 5%.
- Europe — Q2 2026 net revenues were $420 million, up 4% reported but down 1% organic due to a distribution center transition shipment shift.
- Asia — Q2 2026 net revenues were $284 million, up 10% reported and 12% organic.
- Direct-to-Consumer (DTC) — DTC comprised 51% of total Q2 2026 net revenues, with e-commerce growing 19% reported and comparable sales up 6%.
Recent performance
Q2 2026 revenue was $1.6 billion, up 8% reported and 6% organic year-over-year. Operating margin was 7.8% and adjusted EBIT margin was 9.0%, up 70 basis points. Diluted EPS from continuing operations was $0.24, up 20%, and adjusted diluted EPS was $0.28. For fiscal 2025, annual revenue was $6.28 billion and net income was $578.1 million. As of May 31, 2026, the company had $849.3 million in cash and $1.04 billion in long-term debt.
Strategy
Management states it is evolving into a DTC-first, denim lifestyle company targeting a larger addressable market. Focus is on elevating, expanding, and strengthening brands globally, with investments in direct-to-consumer channels. The company is divesting the Dockers business to streamline operations. In Q2 2026, gross margin expanded 10 basis points to 62.7%, aided by lower product costs and pricing actions.
Risks
- Macroeconomic pressure — Inflation, container shipping disruptions, FX fluctuations, and trade policy changes could impact revenue, margins, and net income in fiscal 2026.
- Consumer discretionary spending — Declines in consumer spending could lead to reduced demand, higher discounts, lower gross margins, and order cancellations.
- Tariff and FX headwinds — The company noted tariffs and foreign exchange were a headwind to gross margin in Q2 2026 despite overall expansion.
- Dockers divestiture execution — The remaining Dockers sale is expected to close by around February 27, 2026; delays or unexpected costs could affect results.
Outlook
Management raised full-year 2026 net revenue and EPS guidance after strong first-half results. The company also increased its quarterly dividend, reflecting confidence in cash flow generation. Continued growth is expected across markets, channels, and categories, though tariff and FX impacts remain headwinds.