Levi Strauss (LEVI) Q3 2026 Earnings: Profit Outlook Raised, Direct-to-Consumer Falls Short

Levi Strauss & Co. reported third-quarter 2026 results on October 7. The release shows net revenues of $1.6 billion, up 4% reported and 5% organically, for the quarter ended August 30.

Where growth came from#

Wholesale revenue grew 6% with strength in Europe and Asia. Direct-to-consumer revenue grew 2%, with e-commerce up 10% but comparable sales flat; DTC was 45% of revenue. By region, the Americas grew 4% reported, Europe 4%, and Asia 5% (10% organic). U.S. revenue declined 1%. Beyond Yoga grew 9%. Chief executive Michelle Gass said DTC fell short of internal expectations and that recent trends put it on track for mid-single-digit growth in the fourth quarter.

Profit and guidance#

Operating margin was 13.8% and adjusted EBIT margin 15.5%. Diluted EPS from continuing operations was $0.43 and adjusted EPS $0.48. The company redeployed most of a tariff refund into the business, raised full-year adjusted EPS guidance to $1.54 to $1.56, and plans a $100 million accelerated share repurchase.

Analyst reaction#

Reports of brokerage notes after the results describe lower price targets from Raymond James, JPMorgan, BofA, Wells Fargo and Barclays, with Wells Fargo cutting to $20 at Equal Weight and BofA to $25 at Buy. The reported concerns centered on the DTC shortfall and reduced visibility into growth beyond this year. These are summaries of analyst opinions, not company statements.

What to compare next#

For readers following LEVI, the raised profit guidance and the DTC miss point in opposite directions. The fourth quarter will show whether DTC reaches the mid-single-digit growth management promised, which is the claim the market will test first.

Published October 21, 2026. Informational reporting, not investment advice. Figures come from the company's own release unless stated; forward-looking guidance is management's current forecast and can change.