--- title: "Levi Strauss | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 1.562 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/292110106.md" datetime: "2026-07-08T20:14:36.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292110106.md) - [en](https://longbridge.com/en/news/292110106.md) - [zh-HK](https://longbridge.com/zh-HK/news/292110106.md) --- # Levi Strauss | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 1.562 B Revenue: As of FY2026 Q2, the actual value is USD 1.562 B, beating the estimate of USD 1.519 B. EPS: As of FY2026 Q2, the actual value is USD 0.24, missing the estimate of USD 0.2431. EBIT: As of FY2026 Q2, the actual value is USD 135.1 M. #### Net Revenues Total Net Revenues for the second quarter of 2026 were $1.6 billion, marking an 8% increase on a reported basis and a 6% increase on an organic basis compared to the second quarter of 2025. For the six months ended May 31, 2026, total net revenues were $3.305 billion, an 11% increase on a reported basis and an 8% increase on an organic basis compared to the prior year period. ##### By Region (Q2 2026 vs Q2 2025): - Americas net revenues increased 9% on a reported basis to $815 million and 7% on an organic basis, with the U.S. increasing 5% on a reported basis within the Americas. - Europe net revenues increased 4% on a reported basis to $420 million but decreased -1% on an organic basis, primarily due to a distribution center transition in the prior year. For the first half of 2026, Europe net revenues increased 14% on a reported basis and 5% on an organic basis. - Asia net revenues increased 10% on a reported basis to $284 million and 12% on an organic basis. ##### By Brand (Q2 2026 vs Q2 2025): - Beyond Yoga® net revenues increased 16% on both a reported and organic basis to $43 million. - Levi’s® Brands net revenues increased 7.8% on a reported basis to $1.5194 billion and 5.5% on an organic basis. - Levi’s® brand net revenues increased 8.1% on a reported basis to $1.4621 billion and 5.6% on an organic basis. - Levi Strauss Signature™ net revenues increased 1.6% on a reported basis to $57.3 million and 1.2% on an organic basis. ##### By Channel (Q2 2026 vs Q2 2025): - Direct-to-Consumer (DTC) net revenues increased 11% on a reported basis to $793.6 million and 8% on an organic basis. - DTC growth reflected a 5% increase in the U.S., a 12% increase in Europe, and a 12% increase in Asia on a reported basis. - Net revenues from e-commerce grew 19% on a reported basis and 17% on an organic basis. - DTC comprised 51% of total net revenues in the second quarter. - Wholesale net revenues increased 5% on a reported basis to $768.4 million and 3% on an organic basis. #### Operating Income - Americas operating income was $164 million, up 7% from $153 million in Q2 2025. - Europe operating income was $89 million, up 28% from $69 million in Q2 2025. - Asia operating income was $43 million, up 44% from $30 million in Q2 2025. - Beyond Yoga® operating income was - $2 million, compared to - $4 million in Q2 2025, representing a 47% increase. #### Operational Metrics - Operating margin was 7.8% in Q2 2026, up from 7.5% in Q2 2025. - Adjusted EBIT margin was 9.0% in Q2 2026, up from 8.3% in Q2 2025. - Gross margin expanded 10 basis points to 62.7%, driven by lower product costs and pricing actions. - Selling, general and administrative expenses (SG&A) were $843 million in Q2 2026, compared to $791 million in Q2 2025. - Adjusted SG&A was $838 million, up 6.5% compared to $787 million last year. - Interest and other income (expense), net, was $0 in Q2 2026, compared to expenses of - $6 million in Q2 2025. - The effective income tax rate was 22.4%, compared to 22.3% in Q2 2025. - Net income from continuing operations was $95 million in Q2 2026, compared to $80 million in Q2 2025. - Adjusted net income was $110 million in Q2 2026, compared to $89 million in Q2 2025. - Net loss from discontinued operations, net of taxes, was - $7.5 million in Q2 2026, compared to - $12.6 million in Q2 2025. - Net income was $87.3 million in Q2 2026, compared to $67.0 million in Q2 2025. - DTC comparable sales growth was 6% in Q2 2026. #### Balance Sheet - Cash and cash equivalents were $849 million as of May 31, 2026. - Total liquidity was approximately $1.8 billion as of May 31, 2026. - Total inventories decreased 7% on a dollar basis compared to Q2 2025. #### Cash Flow (Six Months Ended May 31, 2026 vs June 1, 2025) - Net cash provided by operating activities was $482.3 million, compared to $238.0 million in the prior year period. - Purchases of property, plant and equipment were - $99.3 million, compared to - $106.1 million in the prior year period. - Adjusted free cash flow was $383.0 million, compared to $131.9 million in the prior year period. #### Shareholder Returns - In the second quarter, Levi Strauss & Co. returned $53.9 million in dividends to shareholders, representing a $0.14 per share dividend and a 5% increase over the prior year. - The company declared a dividend of $0.16 per share, a 14% increase over the prior year, totaling approximately $62 million, payable on August 5, 2026. - As of May 31, 2026, the company had $240 million remaining under its current share repurchase authorization. #### Fiscal 2026 Guidance Levi Strauss & Co. raised its full-year 2026 reported net revenues growth outlook to 7.0% to 7.5% and organic net revenues growth to 5.5% to 6.0%. The company expects gross margin to be up 10 basis points to the prior year and adjusted EBIT margin to expand to 12%. Adjusted diluted EPS is raised to $1.46 to $1.52, which includes an approximate - $0.04 headwind from a higher tax rate, with the tax rate expected to be approximately 23%. ### Related Stocks - [LEVI.US](https://longbridge.com/en/quote/LEVI.US.md) ## Related News & Research - [What Levi Strauss (LEVI)'s Upgraded Outlook and Higher Dividend Means For Shareholders](https://longbridge.com/en/news/293143824.md) - [Levi Strauss CFO and Chief Growth Officer Harmit Singh disposes of USD 2.38 million in common shares](https://longbridge.com/en/news/293807801.md) - [Linde's Q2 2026 Earnings: What to Expect](https://longbridge.com/en/news/293494879.md) - [Levi Strauss (LEVI) Could Be 11% Undervalued After Earnings Guidance And Dividend Lift](https://longbridge.com/en/news/292594688.md) - [Dividend 15 Split declares $0.10 dividend](https://longbridge.com/en/news/293219408.md)