TipRanks
Levi Strauss & Co (MX:LEVI)
:LEVI
Mexico Market
EarningsQ2 2026 Earnings Report

Levi Strauss & Co (LEVI) Q2 2026 Earnings Report

0 Followers

MX:LEVI Q2 2026 EPS Results

Actual EPS$4.82
Consensus EPS$4.20
Beat/MissBeat by +$0.62
One Year Ago EPS$3.79

MX:LEVI Q2 2026 Revenue Results

Actual Revenue$26.89B
Expected Revenue$26.19B
Beat/MissBeat by +$705.03M
YoY Revenue Growth+7.88%

Earnings Announcement Details

QuarterQ2 2026
Date07/08/2026
TimeAfter Close
Conference CallWednesday, July 8, 2026
MX:LEVI Upcoming Earnings
Levi Strauss & Co's next earnings date is estimated for October 7, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:LEVI Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 08, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call presented a broad set of positive execution outcomes: solid organic revenue growth (6%), strong DTC and e-commerce expansion, margin expansion (gross margin +10 bps to 62.7%, adjusted EBIT margin +70 bps to 9%), robust free cash flow (+~80% to $231M), and raised full-year revenue and EPS guidance. Management acknowledged and is actively managing near-term headwinds—tariff uncertainty, FX impacts, and some distribution transition timing issues in the U.S. and Europe—but framed these as manageable given operational improvements (inventory down 7%, Europe DC benefits, ERP progress) and strong consumer demand across categories (women’s +11%, Asia +12%). Overall, positive momentum and upgraded guidance outweigh the transitory challenges highlighted.
Company Guidance
Levi’s raised its full‑year FY26 outlook, now expecting reported net revenues up 7.0%–7.5% (organic +5.5%–6.0%), with foreign exchange a ~150‑basis‑point tailwind (vs prior 100‑bp), gross margin to expand ~10 bps, and adjusted EBIT margin of ~12%; adjusted diluted EPS was raised $0.04 to about $1.46–$1.52. For Q3 the company expects reported and organic net revenues +4%–5%, gross margin around 61.8% (≈+10 bps vs prior despite a ~70‑bp FX headwind), adjusted EBIT margin ≈11.9% (≈10‑bp leverage) and adjusted diluted EPS ~$0.34–$0.36 (including a $0.02–$0.03 headwind from higher tax/FX). Guidance assumes incremental tariffs (China 30%, rest of world 20%) and excludes any benefit from potential tariff refunds (~$80M); Levi’s also plans 50–60 net new store openings (weighted to H2), expects to end the year with adjusted EBIT margin up ~60 bps, reiterated a longer‑term path to $10B revenue and 15% operating margin, and committed to returning 55%–65% of free cash flow while raising the Q3 dividend to $0.16 per share.
Top-Line Growth
Reported net revenues increased 8% in Q2 and organic net revenues rose 6% year-over-year; company raised full-year reported revenue guidance to +7.0%–7.5% and organic guidance to +5.5%–6.0%.
Direct-to-Consumer (DTC) Strength
Global DTC revenue grew 8% in Q2, comprised 51% of total company revenue, with comparable store sales up 6% (17th consecutive quarter of comp growth); e-commerce sales grew 17% and e-commerce channel has grown ~60% over the past 3 years while representing ~12% of total revenue.
Margin Expansion and Profitability
Gross margin expanded ~10 basis points to 62.7% in Q2; adjusted EBIT margin expanded 70 basis points to 9%; adjusted EBIT dollars grew 18% year-over-year; adjusted diluted EPS was $0.28, up 27% YoY; full-year adjusted EBIT margin target raised to ~12% and FY EPS guidance increased to $1.46–$1.52 (up $0.04).
Free Cash Flow and Capital Returns
Adjusted free cash flow increased nearly 80% year-over-year to $231 million in Q2; company reaffirmed disciplined capital allocation, returning at least 55%–65% of free cash flow to shareholders and increased the Q3 dividend by $0.02 to $0.16 per share.
Category and Assortment Expansion Driving Units
Two-thirds of Q2 growth was driven by unit growth (expanded TAM); bottoms up 6%, tops up 5% (7% excluding last year's Europe DC transition), shorts up 11%; women's business grew 11% and contributed outsized performance—white denim in women grew 70%.
International Momentum
International revenue grew 6% in Q2, led by Asia (+12%) and Latin America (double-digit); Mexico grew 15% (company's second-largest market); China showing signs of return to growth under new leadership.
Product Portfolio and Premium Traction
BlueTab (premium denim) showing rapid early traction (management cited ~40% growth trends previously and again this period) and is expanding premium presence; expanded assortments beyond denim bottoms contributed roughly one-third of top-line growth.
Inventory and Operational Improvements
Ending Q2 inventory declined 7% with a healthier mix of current product; Europe DC remap to omnichannel completed delivering distribution expense leverage and improving operating margins in Europe (~21.1% operating margin, +~400 bps YoY in Q2 for the region).
Loyalty and Consumer Acquisition
Added ~3 million new members to the loyalty program in Q2, bringing global membership to nearly 50 million and enhancing data-driven personalization and retention opportunities.
Brand and Marketing Highlights
Successful global marketing (e.g., 'Behind Every Original' campaign, World Cup activation) produced large cultural reach (one World Cup social moment generated ~1 billion press impressions), driving brand heat and local activations in key markets.

MX:LEVI Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 07, 2026
2026 (Q3)
6.20 / -
5.856
2026 (Q2)
4.20 / 4.82
3.78927.27% (+1.03)
2026 (Q1)
6.32 / 7.23
6.54510.53% (+0.69)
2025 (Q4)
6.73 / 7.06
8.612-18.00% (-1.55)
2025 (Q3)
5.27 / 5.86
5.6843.03% (+0.17)
2025 (Q2)
2.31 / 3.79
2.75637.50% (+1.03)
2025 (Q1)
4.79 / 6.55
4.47846.15% (+2.07)
2024 (Q4)
8.30 / 8.61
7.57913.64% (+1.03)
2024 (Q3)
5.37 / 5.68
4.82317.86% (+0.86)
2024 (Q2)
1.86 / 2.76
0.689300.00% (+2.07)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed