Levi Strauss & Co (NYSE:LEVI) stock rose 10.81% (As on April 8, 11:30:20 AM UTC-4, Source: Google Finance) after the company raised its projections for the year after reporting better-than-expected quarterly results, citing strong demand in all regions as the denim brand steers shoppers to its own stores and website. The company is focused on expanding Levi’s offerings to include more tops and new styles of jeans while prioritizing the brand’s stores and websites. Those channels now represent more than half of Levi’s sales. The efforts seem to be paying off despite a broader pullback in US retail sales. Further, Levi has benefited from shoppers’ renewed interest in ‘90s styles, fueled by the success of the series Love Story: John F. Kennedy Jr. & Carolyn Bessette. Levi’s 517 fit jeans, which were a favorite of Bessette Kennedy, jumped 25% in the quarter
Separately, Levi said company veteran Harmit Singh — Levi’s chief financial and growth officer — is stepping down, marking a major change for the brand. Singh, 63, has served as CFO for more than a decade, and helped to steer the company’s return to public markets in 2019. He will remain in his role until a new executive is named. The company is currently searching for his replacement.
LEVI in the first quarter of FY 26 has reported the adjusted earnings per share of $0.42, beating the analysts’ estimates for the adjusted earnings per share by $0.05. The company had reported the adjusted revenue growth of 14 percent to $1.7 billion in the first quarter of FY 26, beating the analysts’ estimates for revenue of $1.65 billion. Direct-to-consumer net revenues increased 16% on a reported basis and 10% organically, with DTC comparable sales growth of 7%. DTC comprised 52% of total net revenues in the quarter. Wholesale net revenues increased 12% on a reported basis and 8% organically. Adjusted EBIT margin was 12.5% compared to 13.4% in the prior-year quarter, reflecting the impact of tariffs and planned increases in advertising.
Levi also raised its full-year fiscal 2026 adjusted EPS guidance to a range of $1.42 to $1.48, up from its previous outlook of $1.40 to $1.46. The midpoint of $1.45 is slightly below the analyst consensus of $1.46. The company raised its full-year fiscal 2026 reported net revenue growth guidance to 5.5% to 6.5%, up from 5% to 6%, and organic net revenue growth to 4.5% to 5.5%, up from 4% to 5%.