Levi Strauss and Co (LEVI)

Levi Strauss Shares Fall Despite Earnings Beat as Guidance Disappoints (LEVI)July 9, 2026 6:44 AM
IH Market News Strong Quarterly Results Fail to Lift Shares Levi Strauss (NYSE:LEVI) shares fell nearly 5.8% in pre-market trading, slipping to $22.96 as investors focused on the company’s outlook despite better-than-expected second-quarter earnings. The apparel maker reported fiscal second-quarter 2026 adjusted earnings of $0.28 per share after the market closed on July 8, comfortably ahead of the consensus estimate of $0.24. Revenue also exceeded expectations, rising to $1.56 billion versus forecasts of $1.52 billion. Despite the earnings beat, the stock came under pressure as investors looked beyond the quarterly performance. Outlook Falls Short of Market Expectations The primary driver behind the decline was management’s guidance for the remainder of the year. Levi Strauss forecast third-quarter revenue growth of between 4% and 5%, below the 8% growth delivered during the second quarter. The company also projected full-year adjusted earnings per share of $1.46 to $1.52, with the midpoint of $1.49 coming in slightly below analysts’ consensus estimate of $1.51. Tariff uncertainty added another layer of caution. Chief Financial Officer Harmit Singh said the evolving trade environment made it difficult to fully reflect any potential tariff-related benefits in the company’s outlook. Analysts also noted that Wall Street forecasts point to revenue growth slowing to around 3.4% over the next 12 months. Core Business Performance Remains Strong Despite the cautious guidance, Levi Strauss continued to deliver encouraging operational results. Direct-to-consumer sales accounted for more than half of total revenue for the first time, supported by continued growth in e-commerce. The women’s apparel business expanded 11%, while the company also announced a 14% increase in its quarterly dividend. Market Sentiment Adds to Selling Pressure The broader market backdrop offered little support for consumer discretionary stocks. The S&P 500 was down 0.3%, while the Dow Jones Industrial Average declined 1.1%, reinforcing a more defensive tone among investors. The pre-market weakness appears to reflect a classic “sell the guidance” reaction, with a solid quarterly performance overshadowed by more cautious expectations for the second half of fiscal 2026. With the shares still trading close to their 52-week high of $25.58, investors appear to be reassessing the pace of future earnings growth. The post Levi Strauss Shares Fall Despite Earnings Beat as Guidance Disappoints (LEVI) appeared first on US Editors. Original: Levi Strauss Shares Fall Despite Earnings Beat as Guidance Disappoints (LEVI)

Levi Strauss & Co. Reports Second-Quarter ResultsJuly 8, 2026 4:10 PM
Business Wire Reported Net Revenues up 8%; Organic Net Revenues up 6% Operating Margin of 7.8%, up 35 BPS to PY; Adj EBIT Margin of 9.0%, up 70 BPS to PY Continuing Operations Diluted EPS of $0.24, up 20% YoY; Adj Diluted EPS of $0.28, up 27% YoY Raises Full Year 2026 Net Revenue and EPS Outlook; Increases Quarterly Dividend Levi Strauss & Co. (NYSE: LEVI) today announced financial results for the second quarter ended May 31, 2026. “The Levi’s® brand is connecting with consumers around the world in more powerful ways than ever before, and our Q2 results are another proof point that our strategies are working and our team is executing,” said Michelle Gass, President and CEO of Levi Strauss & Co. “Our evolution into a DTC-first, denim lifestyle company—with a much larger addressable market—is translating to faster growth and higher profitability. While we are pleased with the progress, we are still in the early stages of our long-term growth journey, with more ways to win than ever before.” “We delivered another strong quarter driven by broad-based growth across markets, channels and categories,” said Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co. “That growth translated into higher profitability through gross margin expansion and disciplined SG&A leverage, demonstrating the strength and scalability of our operating model. Given our strong first-half results, we are passing through our full Q2 beat and raising our full-year guidance. We are also increasing our dividend, reflecting confidence in the strength of our business, our cash flow generation and our ability to create long-term shareholder value.” Financial Highlights for the Second Quarter Net Revenues of $1.6 billion increased 8% on a reported basis and 6% on an organic basis versus Q2 2025. In the Americas, net revenues increased 9% on a reported basis and increased 7% on an organic basis. Within the Americas, the U.S. increased 5% on a reported basis. In Europe, net revenues increased 4% on a reported basis and decreased 1% on an organic basis entirely due to the impact of the company’s distribution center transition last year which resulted in a shift of shipments from Q1 2025 into Q2 2025. H1 2026 net revenues increased 14% on a reported basis and 5% on an organic basis. In Asia, net revenues increased 10% on a reported basis and 12% on an organic basis. Beyond Yoga® increased 16% on a reported and organic basis. DTC (Direct-to-Consumer) net revenues increased 11% on a reported basis and 8% on an organic basis. DTC growth on a reported basis reflected a 5% increase in the U.S., a 12% increase in Europe and a 12% increase in Asia. DTC growth on an organic basis reflected a 7% increase in Europe and a 12% increase in Asia. Net revenues from e-commerce grew 19% on a reported basis and 17% on an organic basis. DTC comparable sales growth was 6%. DTC comprised 51% of total net revenues in the second quarter. Wholesale net revenues increased 5% on a reported basis and 3% on an organic basis.     Net Revenues           Operating Income (loss)         Three Months Ended   Increase (Decrease) As Reported   Increase (Decrease) Organic Net Revenues   Three Months Ended   Increase (Decrease) As Reported ($ millions)   May 31,
2026   June 1,
2025       May 31,
2026   June 1,
2025   Americas   $ 815   $ 748   9 %   7 %   $ 164     $ 153     7 % Europe   $ 420   $ 403   4 %   (1 )%   $ 89     $ 69     28 % Asia   $ 284   $ 258   10 %   12 %   $ 43     $ 30     44 % Beyond Yoga®   $ 43   $ 37   16 %   16 %   $ (2 )   $ (4 )   47 % ___________ Operating margin was 7.8% in Q2 2026 compared to 7.5% in Q2 2025. Adjusted EBIT margin was 9.0% in Q2 2026 compared to 8.3% in Q2 2025. Gross margin expanded 10 basis points to 62.7%, driven by lower product costs and pricing actions. Tariffs and foreign exchange were a headwind in the quarter. Selling, general and administrative expenses (SG&A) were $843 million compared to $791 million in Q2 2025. Adjusted SG&A was up 6.5% to $838 million compared to $787 million last year primarily due to higher selling expenses and foreign exchange. Interest and other income (expense), net, which includes foreign exchange gains and losses, were zero in the aggregate in Q2 2026 and expenses of $6 million in the aggregate 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 compared to $80 million in Q2 2025. Adjusted net income was $110 million compared to $89 million in Q2 2025. Diluted earnings per share from continuing operations was $0.24 compared to $0.20 in Q2 2025. Adjusted diluted earnings per share was $0.28 compared to $0.22 in Q2 2025. Highlights include: Three Months Ended   % Increase As Reported   % Increase Organic Net Revenues   Six Months Ended   % Increase As Reported   % Increase Organic Net Revenues ($ millions) May 31,
2026   June 1,
2025       May 31,
2026   June 1,
2025     Net revenues $ 1,562   $ 1,446   8%   6%   $ 3,305   $ 2,973   11%   8% DTC Comparable Sales Growth   6%   +   *   *   *   *   *   * Three Months Ended   Increase As Reported   Increase (Decrease) Constant Currency   Six Months Ended   Increase As Reported   Increase (Decrease) Constant Currency ($ millions, except per-share amounts) May 31,
2026   June 1,
2025       May 31,
2026   June 1,
2025     Net income from continuing operations $ 95   $ 80   19%   *   $ 272   $ 220   24%   * Adjusted net income $ 110   $ 89   24%   21%   $ 277   $ 239   16%   12% Adjusted EBIT $ 141   $ 119   18%   13%   $ 359   $ 323   11%   4% Diluted earnings per share from continuing operations $ 0.24   $ 0.20   4 ¢   *   $ 0.69   $ 0.55   14 ¢   * Adjusted diluted earnings per share $ 0.28   $ 0.22   6 ¢   5 ¢   $ 0.70   $ 0.60   10 ¢   8 ¢ ____________________ * Not provided + For the three-month period ended June 1, 2025 the DTC Comparable Sales Growth was in the high-single digits. Additional information regarding DTC Comparable sales growth, a key metric, is provided at the end of this press release. Additional information regarding Adjusted SG&A, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, Adjusted diluted earnings per share, Adjusted free cash flow, as well as amounts presented on an organic net revenues basis and constant currency basis, all of which are non-GAAP financial measures, is provided at the end of this press release. Balance Sheet Review as of May 31, 2026 Cash and cash equivalents were $849 million, while total liquidity was approximately $1.8 billion. Total inventories decreased 7% on a dollar basis compared to Q2 2025. Shareholder Returns In the second quarter, the company returned $53.9 million in the form of dividends to shareholders, a 5% increase over prior year, representing a dividend of $0.14 per share. The $200 million accelerated share repurchase program launched in the first quarter of 2026 is expected to be settled in the third quarter. As of May 31, 2026, the company had $240 million remaining under its current share repurchase authorization, which has no expiration date. The company declared a dividend of $0.16 per share, a 14% increase over prior year, totaling approximately $62 million, payable in cash on August 5, 2026 to the holders of record of Class A common stock and Class B common stock at the close of business on July 22, 2026. Fiscal 2026 Guidance Guidance for 2026 is based on continuing operations, reflecting the Dockers® business being reported in discontinued operations. Guidance assumes U.S. tariffs on imports from China remain at 30% and Rest-of-World at 20%. The following guidance is provided for the year ending November 29, 2026: Metric Updated FY 2026 Guidance Previous FY 2026 Guidance Reported net revenues growth Raised to 7.0% to 7.5% 5.5% to 6.5% Organic net revenues growth Raised to 5.5% to 6.0% 4.5% to 5.5% Gross margin Raised to up 10 basis points to prior year Flat to slightly up to prior year Adjusted EBIT margin Expanding to 12%, up 60 basis points to prior year Expanding to approximately 12% Tax rate Approximately 23%, 2 points higher than prior year Approximately 23%, 2 points higher than prior year Adjusted diluted EPS Raised to $1.46 to $1.52 This includes an approximate $0.04 headwind from a higher tax rate $1.42 to $1.48 This includes an approximate $0.04 headwind from a higher tax rate This outlook also assumes no significant worsening of macro-economic pressures on the consumer, inflationary pressures, supply chain disruptions, potential tariffs or currency fluctuations. A reconciliation of non-GAAP forward looking information to the corresponding GAAP measures cannot be provided without unreasonable efforts due to the challenge in quantifying various items including but not limited to, the effects of foreign currency fluctuations, taxes, potential tariffs and rebates, and any future restructuring, restructuring-related, severance and other charges. Investor Conference Call To access the conference call, please pre-register on https://register-conf.media-server.com/register/BIaa579b9dc68f4e8b85f3a07e93aae5b8 and you will receive confirmation with dial-in details. A live webcast of the event can be accessed on https://edge.media-server.com/mmc/p/kopa6vxc. A replay of the webcast will be available on http://investors.levistrauss.com starting approximately two hours after the event and archived on the site for one quarter. About Levi Strauss & Co. Levi Strauss & Co. (LS&Co.) is one of the world's largest brand-name apparel companies and a global leader in jeanswear. The company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's®, Levi Strauss Signature™, and Beyond Yoga® brands. Its products are sold in approximately 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,300 retail stores and shop-in-shops. Levi Strauss & Co.'s reported 2025 net revenues were $6.3 billion. For more information, go to http://levistrauss.com, and for financial news and announcements go to http://investors.levistrauss.com. Forward-Looking Statements This press release and related conference call contains, in addition to historical information, forward-looking statements, including statements related to: future financial results, including the company’s expectations for the full fiscal year 2026 net revenues (both reported and on an organic net revenues basis), gross margin, adjusted EBIT margins, adjusted SG&A, adjusted diluted earnings per share and effective tax rate; business and market outlook; consumer preferences; progress against strategic priorities; the ongoing restructuring of our operations and our ability to achieve any anticipated cost savings associated with such restructuring; trajectory of direct-to-consumer business; macroeconomic conditions, including impacts of and uncertainties around U.S. tariffs and potential rebates and any additional retaliatory measures by impacted exporting countries; impacts of foreign currency exchange; capital expenditures; pricing initiatives; inventory growth; new store openings; investments in high growth initiatives; future dividend payments and share repurchases; and efforts to diversify product categories and distribution channels, and the related revenue projections. The company has based these forward-looking statements on its current reasonable assumptions, expectations and projections about future events. Words such as, but not limited to, “believe,” “will,” “may,” “so we can,” “when,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “could” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessary estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties, some of which are beyond our control, that could cause actual results to differ materially from those suggested by the forward-looking statements. Investors should consider the information contained in the company's filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for fiscal 2025, especially in the “Management's Discussion and Analysis of Financial Condition and Results of Operations”, “Summary of Risk Factors” and “Risk Factors” sections, and its Quarterly Report on Form 10-Q for the quarter ended May 31, 2026, especially in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, section. Other unknown or unpredictable factors also could have material adverse effects on future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release and related conference call may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if no date is stated, as of the date of this press release and related conference call. The company is not under any obligation and does not intend to update or revise any of the forward-looking statements contained in this press release and related conference call to reflect circumstances existing after the date of this press release and related conference call or to reflect the occurrence of future events, even if such circumstances or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Key Metrics DTC Comparable sales growth is used by management to evaluate the performance of our existing Levi’s® brand company owned and operated mainline and outlet store base and owned digital channels by measuring year-over-year changes in net revenues for stores open for at least 12 full fiscal months, excluding the effects of changes in our store portfolio and other events that materially affect comparability such as significant relocations, or expansions and remodels. In fiscal years with 53 weeks, the impact of the additional week is excluded, and prior-year periods are adjusted as necessary to align comparable weeks. DTC Comparable sales growth is presented on a constant currency basis and is intended as a supplemental operating metric, which may not be comparable to similarly titled measures used by other companies. Non-GAAP Financial Measures The company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP) and the rules of the SEC. To supplement its financial statements prepared and presented in accordance with GAAP, the company uses certain non-GAAP financial measures, such as Adjusted SG&A, Adjusted SG&A margin, Adjusted EBIT (both reported and on a constant-currency basis), Adjusted EBIT margin (both reported and on a constant-currency basis), Adjusted EBITDA, Adjusted net income (both reported and on a constant-currency basis), Adjusted diluted earnings per share (both reported and on a constant-currency basis), organic net revenues, Adjusted free cash flow, and return on invested capital to provide investors with additional useful information about its financial performance, to enhance the overall understanding of its past performance and future prospects and to allow for greater transparency with respect to important metrics used by management for financial and operating decision-making. The company presents these non-GAAP financial measures to assist investors in seeing its financial performance from management's view and because it believes they provide an additional tool for investors to use in computing the company's core financial performance over multiple periods with other companies in its industry. The tables found below present Adjusted SG&A, Adjusted SG&A margin, Adjusted EBIT (both reported and on a constant-currency basis), Adjusted EBIT margin (both reported and on a constant-currency basis), Adjusted EBITDA, Adjusted net income (both reported and on a constant-currency basis), Adjusted diluted earnings per share (both reported and on a constant-currency basis), organic net revenues, Adjusted free cash flow, and return on invested capital and corresponding reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Certain items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company’s financial position, results of operations and cash flows and should therefore be considered in assessing the company’s actual financial condition and performance. Non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgment by management in determining how they are formulated. Some specific limitations include but are not limited to, the fact that such non-GAAP financial measures: (a) do not reflect cash outlays for capital expenditures, contractual commitments or liabilities including pension obligations, post-retirement health benefit obligations and income tax liabilities; (b) do not reflect changes in, or cash requirements for, working capital requirements; and (c) do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on indebtedness. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. The company urges investors to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate its business. See “RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES” below for reconciliation to the most comparable GAAP financial measures. A reconciliation of non-GAAP forward-looking information to the corresponding GAAP measures cannot be provided without unreasonable efforts due to the challenge in quantifying various items including but not limited to, the effects of foreign currency fluctuations, taxes, and any future restructuring, restructuring-related, severance and other charges. Organic Net Revenues and Constant-Currency The company reports net revenues in accordance with GAAP, as well as on an organic net revenues basis in order to facilitate period-to-period comparisons of our revenues which excludes the impact of fluctuating foreign currency exchange rates from the change in reported net revenues, net revenues derived from business acquisitions, divestitures or wind downs impacting the comparable reporting date and the estimated impact of any 53rd week. The company reports certain operating results in accordance with GAAP, as well as on a constant-currency basis in order to facilitate period-to-period comparisons of its results without regard to the impact of fluctuating foreign currency exchange rates. These measures exclude the results of our Dockers® business, which is classified as discontinued operations. The term foreign currency exchange rates refers to the exchange rates used to translate the company's operating results for all countries where the functional currency is not the U.S. Dollar into U.S. Dollars. Because the company is a global company, foreign currency exchange rates used for translation may have a significant effect on its reported results. In general, the company's financial results are affected positively by a weaker U.S. Dollar and are affected negatively by a stronger U.S. Dollar as compared to the foreign currencies in which it conducts its business. References to operating results on a constant-currency basis mean operating results without the impact of foreign currency translation fluctuations. The company calculates constant-currency amounts by translating local currency amounts in the prior-year period at actual foreign currency exchange rates for the current period. Constant-currency results do not eliminate the transaction currency impact, which primarily includes the realized and unrealized gains and losses recognized from the measurement and remeasurement of purchases and sales of products in a currency other than the functional currency and of forward foreign exchange contracts. The company believes disclosure of organic net revenues and Adjusted EBIT constant-currency, Adjusted EBIT Margin constant-currency and Adjusted Net Income constant-currency results is helpful to investors because it facilitates period-to-period comparisons of its results by increasing the transparency of the underlying performance by excluding the impact of fluctuating foreign currency exchange rates. However, organic net revenues and constant-currency results are non-GAAP financial measures and are not meant to be considered in isolation or as a substitute for comparable measures prepared in accordance with GAAP. Organic net revenues and constant-currency results have no standardized meaning prescribed by GAAP, are not prepared under any comprehensive set of accounting rules or principles and should be read in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Organic net revenues and constant-currency results have limitations in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Source: Levi Strauss & Co. Investor Relations   LEVI STRAUSS & CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS     (Unaudited)       May 31,
2026   November 30,
2025           (Dollars in millions) ASSETS Current Assets:       Cash and cash equivalents $ 849.3     $ 757.9   Short-term investments in marketable securities   128.5       90.9   Trade receivables, net   586.2       774.7   Inventories   1,157.6       1,237.7   Other current assets   245.3       238.5   Current assets held for sale   —       54.0   Total current assets   2,966.9       3,153.7   Property, plant and equipment, net   659.8       681.8   Goodwill   282.0       280.6   Other intangible assets, net   192.8       194.4   Deferred tax assets, net   839.9       830.1   Operating lease right-of-use assets, net   1,141.3       1,148.2   Other non-current assets   544.8       538.7   Non-current assets held for sale   —       21.3   Total assets $ 6,627.5     $ 6,848.8           LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities:       Accounts payable $ 598.5     $ 597.6   Accrued salaries, wages and employee benefits   192.9       244.7   Accrued sales returns and allowances   190.8       226.1   Short-term operating lease liabilities   268.3       260.7   Other accrued liabilities   602.7       703.4   Total current liabilities   1,853.2       2,032.5   Long-term debt   1,043.0       1,039.2   Long-term operating lease liabilities   984.3       1,005.6   Long-term employee related benefits   244.3       252.7   Other long-term liabilities   230.3       240.2   Total liabilities   4,355.1       4,570.2           Commitments and contingencies               Stockholders’ Equity:       Common stock — $0.001 par value; 1,200,000,000 Class A shares authorized, 99,130,650 shares and 103,620,225 shares issued and outstanding as of May 31, 2026 and November 30, 2025, respectively; and 422,000,000 Class B shares authorized, 285,717,276 shares and 286,756,831 shares issued and outstanding, as of May 31, 2026 and November 30, 2025, respectively   0.4       0.4   Additional paid-in capital   754.9       788.1   Retained earnings   1,896.8       1,897.3   Accumulated other comprehensive loss   (379.7 )     (407.2 ) Total stockholders’ equity   2,272.4       2,278.6   Total liabilities and stockholders’ equity $ 6,627.5     $ 6,848.8     The notes accompanying our consolidated financial statements in our Form 10-Q for the second quarter of fiscal 2026 are an integral part of these consolidated financial statements.   LEVI STRAUSS & CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME     Three Months Ended   Six Months Ended   May 31,
2026   June 1,
2025   May 31,
2026   June 1,
2025                   (Dollars in millions, except per share amounts)   (Unaudited) Net revenues $ 1,562.0     $ 1,446.0     $ 3,304.5     $ 2,972.8   Cost of goods sold   582.9       540.2       1,247.1       1,119.4   Gross profit   979.1       905.8       2,057.4       1,853.4   Selling, general and administrative expenses   843.4       791.0       1,715.1       1,540.3   Restructuring charges, net   13.5       6.8       21.4       13.5   Operating income   122.2       108.0       320.9       299.6   Interest expense   (12.9 )     (11.8 )     (26.0 )     (22.7 ) Other income (expense), net   12.9       6.3       55.5       2.2   Income from continuing operations before income taxes   122.2       102.5       350.4       279.1   Income tax expense   27.4       22.9       78.5       59.3   Net income from continuing operations   94.8       79.6       271.9       219.8   Net loss from discontinued operations, net of taxes   (7.5 )     (12.6 )     (8.8 )     (17.8 ) Net income $ 87.3     $ 67.0     $ 263.1     $ 202.0   Earnings (loss) per common share:               Continuing operations - Basic $ 0.25     $ 0.20     $ 0.70     $ 0.55   Discontinued operations - Basic   (0.02 )     (0.03 )     (0.02 )     (0.04 ) Net income - Basic $ 0.23     $ 0.17     $ 0.68     $ 0.51                   Continuing operations - Diluted $ 0.24     $ 0.20     $ 0.69     $ 0.55   Discontinued operations - Diluted   (0.02 )     (0.03 )     (0.02 )     (0.04 ) Net income - Diluted $ 0.22     $ 0.17     $ 0.67     $ 0.51   Weighted-average common shares outstanding:               Basic   385,982,038       396,411,904       387,976,602       396,498,984   Diluted   389,629,216       399,048,949       392,300,262       400,106,225     The notes accompanying our consolidated financial statements in our Form 10-Q for the second quarter of fiscal 2026 are an integral part of these consolidated financial statements.   LEVI STRAUSS & CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS     Six Months Ended   May 31,
2026   June 1,
2025           (Dollars in millions)   (Unaudited) Cash Flows from Operating Activities:       Net income $ 263.1     $ 202.0   Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization   112.8       99.6   Property, plant, equipment impairment, and early lease terminations, net   0.9       14.8   Gain on sale of business, prior to costs to sell   (33.6 )     —   Gain on sale of assets   —       (8.5 ) Stock-based compensation   40.1       44.2   Deferred income taxes   (2.0 )     (17.2 ) Other, net   (7.3 )     7.6   Net change in operating assets and liabilities   108.3       (104.5 ) Net cash provided by operating activities   482.3       238.0   Cash Flows from Investing Activities:       Proceeds from sale of business   96.3       —   Purchases of property, plant and equipment   (99.3 )     (106.1 ) Net proceeds from sales of assets   —       22.3   (Payments) proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting, net   (5.1 )     36.6   Payments to acquire short-term investments   (87.6 )     (83.5 ) Proceeds from sale, maturity and collection of short-term investments   50.6       1.0   Other investing activities, net   (6.4 )     —   Net cash used for investing activities   (51.5 )     (129.7 ) Cash Flows from Financing Activities:       Accelerated share repurchase, including excise tax   (201.0 )     —   Repurchase of common stock   —       (30.5 ) Tax withholdings on equity awards   (31.7 )     (18.5 ) Dividends to stockholders   (107.7 )     (102.8 ) Other financing activities, net   (0.5 )     (0.6 ) Net cash used for financing activities   (340.9 )     (152.4 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash   1.5       7.7   Net increase (decrease) in cash and cash equivalents and restricted cash   91.4       (36.4 ) Beginning cash and cash equivalents   757.9       690.0   Ending cash and cash equivalents $ 849.3     $ 653.6           Noncash Investing Activity:       Property, plant and equipment acquired and not yet paid at end of period $ 37.9     $ 50.5   Supplemental Disclosure of Cash Flow Information:       Cash paid for income taxes during the period, net of refunds $ 105.0     $ 84.4     ____________ Consolidated statements of cash flows include the cash flows from continuing and discontinued operations.   The notes accompanying our consolidated financial statements in our Form 10-Q for the second quarter of fiscal 2026 are an integral part of these consolidated financial statements. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE SECOND QUARTER AND FISCAL YEAR 2026 The following information relates to non-GAAP financial measures, and should be read in conjunction with the investor call held on July 8, 2026, discussing the company’s financial condition and results of operations as of and for the quarter ended May 31, 2026. Because the results of our Dockers® business are classified as discontinued operations, those results are not reflected in our non-GAAP measures. In the table below, we define the following non-GAAP measures: Most comparable GAAP measure   Non-GAAP measure   Non-GAAP measure definition Selling, general and administrative expenses (“SG&A”)   Adjusted SG&A   SG&A excluding goodwill impairment charges and restructuring related charges and other, net SG&A margin   Adjusted SG&A margin   Adjusted SG&A as a percentage of net revenues Net income from continuing operations   Adjusted EBIT   Net income from continuing operations excluding income tax expense, interest expense, other (income) expense, net, goodwill impairment charges, restructuring charges, net, and restructuring related charges and other, net Net income margin from continuing operations   Adjusted EBIT margin   Adjusted EBIT as a percentage of net revenues Net income from continuing operations   Adjusted EBITDA   Adjusted EBIT excluding depreciation and amortization expense Net income from continuing operations   Adjusted net income   Net income from continuing operations excluding goodwill impairment charges, restructuring charges, net, restructuring related charges and other, net, and gain on legal settlement adjusted to give effect to the income tax impact of such adjustments Net income margin from continuing operations   Adjusted net income margin   Adjusted net income as a percentage of net revenues Diluted earnings per share from continuing operations   Adjusted diluted earnings per share   Adjusted net income per weighted-average number of diluted common shares outstanding Adjusted SG&A: The following table presents a reconciliation of SG&A, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted SG&A for each of the periods presented.   Three Months Ended   Six Months Ended   May 31,
2026   June 1,
2025   May 31,
2026   June 1,
2025                   (Dollars in millions)   (Unaudited) Most comparable GAAP measure:               Selling, general and administrative expenses $ 843.4     $ 791.0     $ 1,715.1     $ 1,540.3                   Non-GAAP measure:               Selling, general and administrative expenses $ 843.4     $ 791.0     $ 1,715.1     $ 1,540.3   Goodwill impairment charges(1)   —       —       —       (2.5 ) Restructuring related charges and other, net(2)   (5.5 )     (4.5 )     (16.7 )     (7.7 ) Adjusted SG&A $ 837.9     $ 786.5     $ 1,698.4     $ 1,530.1                   SG&A margin   54.0 %     54.7 %     51.9 %     51.8 % Adjusted SG&A margin   53.6 %     54.4 %     51.4 %     51.5 % _____________ (1) For the six-month period ended June 1, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia. (2) For the three-month period ended May 31, 2026, restructuring related charges and other, net consists primarily of consulting fees associated with our restructuring activities, legal claims, and other expenses. For the six-month period ended May 31, 2026, restructuring related charges and other, net consists primarily of consulting fees associated with our restructuring activities, legal claims, attorney fees related to a gain on legal settlements of $10.0 million, and other expenses.     For the three-month and six-month periods ended June 1, 2025, restructuring related charges and other, net primarily relates to consulting costs associated with our restructuring initiative of $3.6 million and $5.7 million, respectively.   Adjusted EBIT and Adjusted EBITDA: The following table presents a reconciliation of net income from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBIT and Adjusted EBITDA for each of the periods presented.   Three Months Ended   Six Months Ended   May 31,
2026   June 1,
2025   May 31,
2026   June 1,
2025                   (Dollars in millions)   (Unaudited) Most comparable GAAP measure:               Net income from continuing operations $ 94.8     $ 79.6     $ 271.9     $ 219.8                   Non-GAAP measure:               Net income from continuing operations $ 94.8     $ 79.6     $ 271.9     $ 219.8   Income tax expense   27.4       22.9       78.5       59.3   Interest expense   12.9       11.8       26.0       22.7   Other (income) expense, net   (12.9 )     (6.3 )     (55.5 )     (2.2 ) Goodwill impairment charges(1)   —       —       —       2.5   Restructuring charges, net(2)   13.5       6.8       21.4       13.5   Restructuring related charges and other, net(3)   5.5       4.5       16.7       7.7   Adjusted EBIT $ 141.2     $ 119.3     $ 359.0     $ 323.3   Depreciation and amortization   57.1       50.3       112.4       99.5   Adjusted EBITDA $ 198.3     $ 169.6     $ 471.4     $ 422.8                   Net income margin from continuing operations   6.1 %     5.5 %     8.2 %     7.4 % Adjusted EBIT margin   9.0 %     8.3 %     10.9 %     10.9 % ____________ (1) For the six-month period ended June 1, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia. (2) For the three-month and six-month periods ended May 31, 2026, restructuring charges, net consists primarily of $10.1 million and $18.4 million of severance and post-employment benefit charges, respectively, as well as asset impairment charges related to decision to discontinue certain technology projects, and contract termination costs.   For the three-month period ended June 1, 2025, restructuring charges, net includes $6.8 million in connection with Project Fuel consisting of $7.2 million of asset impairment in connection with the closures of distribution centers, $6.8 million of severance and other post-employment benefit charges, and $2.1 million of contract terminations and other costs, partially offset by a $9.3 million gain on the sale of a previously closed distribution center.   For the six-month period ended June 1, 2025, restructuring charges, net includes $13.5 million in connection with Project Fuel consisting of $9.2 million of asset impairment in connection with the closures of distribution centers, $9.7 million of severance and other post-employment benefit charges, and $3.9 million of contract terminations and other costs, partially offset by a $9.3 million gain on the sale of a previously closed distribution center. (3) For the three-month period ended May 31, 2026, restructuring related charges and other, net consists primarily of consulting fees associated with our restructuring activities, legal claims, and other expenses. For the six-month period ended May 31, 2026, restructuring related charges and other, net consists primarily of consulting fees associated with our restructuring activities, legal claims, attorney fees related to a gain on legal settlements of $10.0 million, and other expenses.   For the three-month and six-month periods ended June 1, 2025, restructuring related charges and other, net primarily relates to consulting costs associated with our restructuring initiative of $3.6 million and $5.7 million, respectively.   Adjusted Net Income: The following table presents a reconciliation of net income from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted net income for each of the periods presented.   Three Months Ended   Six Months Ended   Twelve Months Ended   May 31,
2026   June 1,
2025   May 31,
2026   June 1,
2025   May 31,
2026   June 1,
2025                           (Dollars in millions)   (Unaudited) Most comparable GAAP measure:                       Net income from continuing operations $ 94.8     $ 79.6     $ 271.9     $ 219.8     $ 554.1     $ 422.8                           Non-GAAP measure:                       Net income from continuing operations $ 94.8     $ 79.6     $ 271.9     $ 219.8     $ 554.1     $ 422.8   Property, plant and equipment impairment   —       —       —       —       —       11.1   Goodwill and other intangible asset impairment charges(1)   —       —       —       2.5       —       113.9   Restructuring charges, net(2)   13.5       6.8       21.4       13.5       32.4       30.9   Restructuring related charges and other, net(3)   5.8       4.5       17.2       7.7       25.2       43.4   Loss on early extinguishment of debt   —       —       —       —       1.5       —   Gain on legal settlement   —       —       (33.0 )     —       (33.0 )     —   Tax impact of adjustments(4)   (4.3 )     (2.4 )     (1.0 )     (5.0 )     (5.1 )     (50.0 ) Adjusted net income $ 109.8     $ 88.5     $ 276.5     $ 238.5     $ 575.1     $ 572.1                           Net income margin from continuing operations   6.1 %     5.5 %     8.2 %     7.4 %         Adjusted net income margin   7.0 %     6.1 %     8.4 %     8.0 %         _____________ (1) For the six-month period ended June 1, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia. (2) For the three-month and six-month periods ended May 31, 2026, restructuring charges, net consists primarily of $10.1 million and $18.4 million of severance and post-employment benefit charges, respectively, as well as asset impairment charges related to decision to discontinue certain technology projects, and contract termination costs.   For the three-month period ended June 1, 2025, restructuring charges, net includes $6.8 million in connection with Project Fuel consisting of $7.2 million of asset impairment in connection with the closures of distribution centers, $6.8 million of severance and other post-employment benefit charges, and $2.1 million of contract terminations and other costs, partially offset by a $9.3 million gain on the sale of a previously closed distribution center.   For the six-month period ended June 1, 2025, restructuring charges, net includes $13.5 million in connection with Project Fuel consisting of $9.2 million of asset impairment in connection with the closures of distribution centers, $9.7 million of severance and other post-employment benefit charges, and $3.9 million of contract terminations and other costs, partially offset by a $9.3 million gain on the sale of a previously closed distribution center. (3) For the three-month period ended May 31, 2026, restructuring related charges and other, net consists primarily of consulting fees associated with our restructuring activities, legal claims, and other expenses. For the six-month period ended May 31, 2026, restructuring related charges and other, net consists primarily of consulting fees associated with our restructuring activities, legal claims, attorney fees related to a gain on legal settlements of $10.0 million, and other expenses.   For the three-month and six-month periods ended June 1, 2025, restructuring related charges and other, net primarily relates to consulting costs associated with our restructuring initiative of $3.6 million and $5.7 million, respectively. (4) Tax impact calculated using the annual effective tax rate, excluding discrete costs and benefits.   Adjusted Diluted Earnings per Share: The following table presents a reconciliation of diluted earnings per share from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted diluted earnings per share for each of the periods presented.   Three Months Ended   Six Months Ended   May 31,
2026   June 1,
2025   May 31,
2026   June 1,
2025                   (Unaudited) Most comparable GAAP measure:               Diluted earnings per share from continuing operations $ 0.24     $ 0.20     $ 0.69     $ 0.55                   Non-GAAP measure:               Diluted earnings per share from continuing operations $ 0.24     $ 0.20     $ 0.69     $ 0.55   Goodwill impairment charges(1)   —       —       —       0.01   Restructuring charges, net(2)   0.03       0.02       0.05       0.03   Restructuring related charges and other, net(3)   0.02       0.01       0.04       0.02   Gain on legal settlement   —       —       (0.08 )     —   Tax impact of adjustments(4)   (0.01 )     (0.01 )     —       (0.01 ) Adjusted diluted earnings per share $ 0.28     $ 0.22     $ 0.70     $ 0.60   _____________ (1) For the six-month period ended June 1, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia. (2) For the three-month and six-month periods ended May 31, 2026, restructuring charges, net consists primarily of $10.1 million and $18.4 million of severance and post-employment benefit charges, respectively, as well as asset impairment charges related to decision to discontinue certain technology projects, and contract termination costs.   For the three-month period ended June 1, 2025, restructuring charges, net includes $6.8 million in connection with Project Fuel consisting of $7.2 million of asset impairment in connection with the closures of distribution centers, $6.8 million of severance and other post-employment benefit charges, and $2.1 million of contract terminations and other costs, partially offset by a $9.3 million gain on the sale of a previously closed distribution center.   For the six-month period ended June 1, 2025, restructuring charges, net includes $13.5 million in connection with Project Fuel consisting of $9.2 million of asset impairment in connection with the closures of distribution centers, $9.7 million of severance and other post-employment benefit charges, and $3.9 million of contract terminations and other costs, partially offset by a $9.3 million gain on the sale of a previously closed distribution center. (3) For the three-month period ended May 31, 2026, restructuring related charges and other, net consists primarily of consulting fees associated with our restructuring activities, legal claims, and other expenses. For the six-month period ended May 31, 2026, restructuring related charges and other, net consists primarily of consulting fees associated with our restructuring activities, legal claims, attorney fees related to a gain on legal settlements of $10.0 million, and other expenses.   For the three-month and six-month periods ended June 1, 2025, restructuring related charges and other, net primarily relates to consulting costs associated with our restructuring initiative of $3.6 million and $5.7 million, respectively. (4) Tax impact calculated using the annual effective tax rate, excluding discrete costs and benefits.   Adjusted Free Cash Flow: Adjusted free cash flow, a non-GAAP financial measure, includes net cash flow from operating activities less purchases of property, plant and equipment from continuing and discontinued operations. This measure therefore includes the results of our Dockers® business, which is classified as discontinued operations. We believe Adjusted free cash flow is an important liquidity measure of the cash that is available after capital expenditures for operational expenses and investment in our business. We believe Adjusted free cash flow is useful to investors because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth and return capital to stockholders. The following table presents a reconciliation of net cash flow from operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted free cash flow for each of the periods presented.   Three Months Ended   Six Months Ended   May 31,
2026   June 1,
2025   May 31,
2026   June 1,
2025                   (Dollars in millions)   (Unaudited) Most comparable GAAP measure:               Net cash provided by operating activities $ 270.8     $ 185.5     $ 482.3     $ 238.0   Net cash used for investing activities   (77.8 )     (58.6 )     (51.5 )     (129.7 ) Net cash used for financing activities   (56.8 )     (54.9 )     (340.9 )     (152.4 )                 Non-GAAP measure:               Net cash provided by operating activities $ 270.8     $ 185.5     $ 482.3     $ 238.0   Purchases of property, plant and equipment   (39.9 )     (39.5 )     (99.3 )     (106.1 ) Adjusted free cash flow $ 230.9     $ 146.0     $ 383.0     $ 131.9     Return on Invested Capital: We define Return on invested capital (“ROIC”) as the trailing four quarters of Adjusted net income before interest and after taxes divided by the average trailing five quarters of total invested capital. We define total invested capital as total debt plus shareholders' equity less cash and short-term investments. We believe ROIC is useful to investors as it quantifies how efficiently we generated operating income relative to the capital we have invested in the business. Our calculation of ROIC is considered a non-GAAP financial measure because we calculate ROIC using the non-GAAP metric Adjusted net income. Although ROIC is a standard financial metric, numerous methods exist for calculating a company's ROIC. As a result, the method we use to calculate our ROIC may differ from the methods used by other companies. This metric is not defined by GAAP and should not be considered as an alternative to earnings measures defined by GAAP. The table below sets forth the calculation of ROIC for each of the periods presented.   Trailing Four Quarters   May 31,
2026   June 1,
2025           (Dollars in millions)   (Unaudited) Net income from continuing operations $ 554.1     $ 422.8           Numerator       Adjusted net income(1) $ 575.1     $ 572.1   Interest expense   51.8       44.3   Adjusted income tax expense   156.2       124.4   Adjusted net income before interest and taxes   783.1       740.8   Income tax adjustment(2)   (167.2 )     (132.3 ) Adjusted net income before interest and after taxes $ 615.9     $ 608.5   _____________ (1) Adjusted net income is reconciled from net income from continuing operations which is the most comparable GAAP measure. Refer to Adjusted net income table for more information. (2) Tax impact calculated using the adjusted annual effective tax rate, excluding discrete costs and benefits.     Average Trailing Five Quarters   May 31,
2026   June 1,
2025           (Dollars in millions)   (Unaudited) Denominator       Total debt, including operating lease liabilities $ 2,365.1     $ 2,193.2   Shareholders' equity   2,154.7       1,867.0   Cash and short-term investments   (718.0 )     (627.3 ) Total invested Capital $ 3,801.8     $ 3,432.9           Net income to total invested capital   14.6 %     12.3 % Return on invested capital   16.2 %     17.7 %   Organic Net Revenues: The table below sets forth the calculation of net revenues by segment on an organic net revenues basis for each of the periods presented.   Three Months Ended   Six Months Ended   May 31,
2026   June 1,
2025   % Increase (Decrease)   May 31,
2026   June 1,
2025   % Increase (Decrease)                           (Dollars in millions)   (Unaudited) Total net revenues(1)                       As reported $ 1,562.0   $ 1,446.0     8.0 %   $ 3,304.5   $ 2,972.8     11.2 % Impact of foreign currency exchange rates   —     31.6           —     102.4       Net revenues from Denizen® wind down(2)   —     —           —     (2.3 )     Organic net revenues $ 1,562.0   $ 1,477.6     5.7 %   $ 3,304.5   $ 3,072.9     7.5 %                         Americas                       As reported $ 815.5   $ 748.4     9.0 %   $ 1,671.2   $ 1,531.4     9.1 % Impact of foreign currency exchange rates   —     15.5           —     33.9       Net revenues from Denizen® wind down(2)   —     —           —     (2.3 )     Organic net revenues - Americas $ 815.5   $ 763.9     6.8 %   $ 1,671.2   $ 1,563.0     6.9 %                         Europe                       As reported $ 420.2   $ 403.1     4.2 %   $ 916.2   $ 803.6     14.0 % Impact of foreign currency exchange rates   —     20.3           —     71.6       Organic net revenues - Europe $ 420.2   $ 423.4     (0.8 )%   $ 916.2   $ 875.2     4.7 %                         Asia                       As reported $ 283.7   $ 257.7     10.1 %   $ 631.2   $ 565.8     11.6 % Impact of foreign currency exchange rates   —     (4.2 )         —     (3.1 )     Organic net revenues - Asia $ 283.7   $ 253.5     11.9 %   $ 631.2   $ 562.7     12.2 %                         Beyond Yoga®                       As reported $ 42.6   $ 36.8     15.8 %   $ 85.9   $ 72.0     19.3 % Organic net revenues - Beyond Yoga® $ 42.6   $ 36.8     15.8 %   $ 85.9   $ 72.0     19.3 % _____________ (1) These measures exclude the results of our Dockers® business, which is classified as discontinued operations. (2) Foreign currency did not significantly impact net revenues from Denizen® wind down for the six months ended June 1, 2025.   The table below sets forth the calculation of net revenues by channel on an organic net revenues basis for each of the periods presented.   Three Months Ended   Six Months Ended   May 31,
2026   June 1,
2025   % Increase (Decrease)   May 31,
2026   June 1,
2025   % Increase (Decrease)                           (Dollars in millions)   (Unaudited) Total net revenues(1)                       As reported $ 1,562.0   $ 1,446.0   8.0 %   $ 3,304.5   $ 2,972.8     11.2 % Impact of foreign currency exchange rates   —     31.6         —     102.4       Net revenues from Denizen® wind down(2)   —     —         —     (2.3 )     Organic net revenues $ 1,562.0   $ 1,477.6   5.7 %   $ 3,304.5   $ 3,072.9     7.5 %                         Wholesale                       As reported $ 768.4   $ 729.9   5.3 %   $ 1,599.4   $ 1,469.2     8.9 % Impact of foreign currency exchange rates   —     15.6         —     45.1       Net revenues from Denizen® wind down(2)   —     —         —     (2.3 )     Organic net revenues - Wholesale $ 768.4   $ 745.5   3.1 %   $ 1,599.4   $ 1,512.0     5.8 %                         DTC                       As reported $ 793.6   $ 716.1   10.8 %   $ 1,705.1   $ 1,503.6     13.4 % Impact of foreign currency exchange rates   —     16.0         —     57.3       Organic net revenues - DTC $ 793.6   $ 732.1   8.4 %   $ 1,705.1   $ 1,560.9     9.2 % _____________ (1) These measures exclude the results of our Dockers® business, which is classified as discontinued operations. (2) Foreign currency did not significantly impact net revenues from Denizen® wind down for the six months ended June 1, 2025.   The table below sets forth the calculation of net revenues by brand on an organic net revenues basis for each of the periods presented.   Three Months Ended   Six Months Ended   May 31,
2026   June 1,
2025   % Increase (Decrease)   May 31,
2026   June 1,
2025   % Increase (Decrease)                           (Dollars in millions)   (Unaudited) Total Levi’s Brands net revenues                       As reported $ 1,519.4   $ 1,409.2   7.8 %   $ 3,218.6   $ 2,900.8     11.0 % Impact of foreign currency exchange rates   —     31.6         —     102.4       Net revenues from Denizen® wind down(1)   —     —         —     (2.3 )     Organic net revenues $ 1,519.4   $ 1,440.8   5.5 %   $ 3,218.6   $ 3,000.9     7.3 %                         Levi’s®                       As reported $ 1,462.1   $ 1,352.8   8.1 %   $ 3,095.6   $ 2,785.6     11.1 % Impact of foreign currency exchange rates   —     31.4         —     102.0       Organic net revenues - Levi’s® $ 1,462.1   $ 1,384.2   5.6 %   $ 3,095.6   $ 2,887.6     7.2 %                         Levi Strauss SignatureTM                       As reported $ 57.3   $ 56.4   1.6 %   $ 123.0   $ 112.9     8.9 % Impact of foreign currency exchange rates   —     0.2         —     0.4       Organic net revenues - Levi Strauss SignatureTM $ 57.3   $ 56.6   1.2 %   $ 123.0   $ 113.3     8.6 % ___________ (1) Foreign currency did not significantly impact net revenues from Denizen® wind down for the six months ended June 1, 2025.   Constant-Currency Adjusted EBIT and Constant-Currency Adjusted EBIT margin: The table below sets forth the calculation of Adjusted EBIT and Adjusted EBIT margin on a constant-currency basis for each of the periods presented.   Three Months Ended   Six Months Ended   May 31,
2026   June 1,
2025   % Increase (Decrease)   May 31,
2026   June 1,
2025   % Increase (Decrease)                           (Dollars in millions)   (Unaudited) Adjusted EBIT(1) $ 141.2     $ 119.3     18.4 %   $ 359.0     $ 323.3     11.0 % Impact of foreign currency exchange rates   —       5.6     *     —       22.9     * Constant-currency Adjusted EBIT $ 141.2     $ 124.9     13.1 %   $ 359.0     $ 346.2     3.7 %                         Adjusted EBIT margin   9.0 %     8.3 %   8.4 %     10.9 %     10.9 %   — % Impact of foreign currency exchange rates   —       0.2     *     —       0.4     * Constant-currency Adjusted EBIT margin(2)   9.0 %     8.5 %   5.9 %     10.9 %     11.3 %   (3.5 )% _____________ (1) Adjusted EBIT is reconciled from net income from continuing operations which is the most comparable GAAP measure. Refer to Adjusted EBIT and Adjusted EBITDA table for more information. (2) We define constant-currency Adjusted EBIT margin as constant-currency Adjusted EBIT as a percentage of constant-currency net revenues from continuing operations. * Not meaningful   Constant-Currency Adjusted Net Income and Constant-Currency Adjusted Diluted Earnings per Share: The table below sets forth the calculation of Adjusted net income and Adjusted diluted earnings per share on a constant-currency basis for each of the periods presented.   Three Months Ended   Six Months Ended   May 31,
2026   June 1,
2025   % Increase (Decrease)   May 31,
2026   June 1,
2025   % Increase (Decrease)                           (Dollars in millions, except per share amounts)   (Unaudited) Adjusted net income(1) $ 109.8     $ 88.5     24.1 %   $ 276.5     $ 238.5     15.9 % Impact of foreign currency exchange rates   —       2.2     *     —       8.2     * Constant-currency Adjusted net income $ 109.8     $ 90.7     21.1 %   $ 276.5     $ 246.7     12.1 % Constant-currency Adjusted net income margin(2)   7.0 %     6.1 %         8.4 %     8.0 %                             Adjusted diluted earnings per share $ 0.28     $ 0.22     27.3 %   $ 0.70     $ 0.60     16.7 % Impact of foreign currency exchange rates   —       0.01     *     —       0.02     * Constant-currency Adjusted diluted earnings per share $ 0.28     $ 0.23     21.7 %   $ 0.70     $ 0.62     12.9 % _____________ (1) Adjusted net income is reconciled from net income from continuing operations which is the most comparable GAAP measure. Refer to Adjusted net income table for more information. (2) We define constant-currency Adjusted net income margin as constant-currency Adjusted net income as a percentage of constant-currency net revenues from continuing operations. * Not meaningful   View source version on businesswire.com: https://www.businesswire.com/news/home/20260708278591/en/ Investor Contact:
Aida Orphan
Levi Strauss & Co.
(415) 501-6194
Investor-Relations@levi.com Media Contact:
Mark Cazares
Levi Strauss & Co.
(415) 501-7777
NewsMediaRequests@levi.com Original: Levi Strauss & Co. Reports Second-Quarter Results

Five Key Market Events Investors Will Be Watching This WeekJuly 6, 2026 6:47 AM
IH Market News 1. U.S. Services PMI to Gauge Economic Momentum Wall Street returns from the extended Independence Day weekend with investors focused on fresh data from the U.S. services sector, one of the most important indicators of economic activity. The Institute for Supply Management’s (ISM) non-manufacturing PMI for June is expected to ease slightly to 54.2 from 54.5 in May. Any reading above 50 would continue to signal expansion in the sector. Services account for more than two-thirds of U.S. economic output, making the report a critical measure of the country’s growth outlook. The release follows last week’s weaker-than-expected manufacturing PMI, as companies navigated the economic impact of the Iran conflict alongside continued investment linked to artificial intelligence. 2. Federal Reserve Minutes in Focus Markets will also closely examine the minutes from the Federal Reserve’s June policy meeting later this week. At its first meeting under Chair Kevin Warsh, the Fed kept interest rates unchanged at 3.5% to 3.75%. However, policymakers’ projections indicated that several officials still expect borrowing costs to rise before the end of the year in response to energy-related inflation pressures. Investors will also look for additional insight into Warsh’s plans to reshape the Federal Reserve’s policy framework, particularly after he suggested changes to the central bank’s approach to forward guidance while emphasizing that he does not intend to provide explicit signals on the future path of interest rates. Recent comments indicating that inflation risks have eased, combined with softer employment and manufacturing data, have reduced market expectations for another near-term rate increase. 3. Fed Task Force Appointments Could Be Announced Attention is also turning to the expected announcement of the experts who will join a series of Federal Reserve task forces reviewing the institution’s operations. Speaking at a central banking conference in Portugal, Warsh said he expected to reveal this week “who will be the outside experts” participating in the initiative. He added, “Some of them would have been folks in seats like this in prior years, some would have been academics in the audience, but we really tried to find the best minds […], including people from countries outside the U.S.” According to Reuters, five task forces will examine areas including communications, the Fed’s balance sheet, economic forecasting, productivity and employment, and the inflation framework. 4. Levi Strauss Earnings Due Corporate earnings season continues with results from Levi Strauss & Co (NYSE:LEVI), which remains one of the week’s most closely watched reports. The apparel company raised its full-year sales and earnings guidance in April, citing resilient consumer demand despite the impact of U.S. tariffs. Levi’s has also been adapting its supply chain in response to geopolitical uncertainty by reducing its dependence on China while implementing price increases and tighter cost controls. The stock has gained more than 17% since the beginning of the year. 5. Delta Air Lines Outlook Under Scrutiny Delta Air Lines (NYSE:DAL) will publish quarterly results before Friday’s opening bell. Earlier this year, the airline withdrew its planned capacity expansion for the June quarter and declined to issue updated full-year guidance as fuel costs surged during the Iran conflict. With oil prices now back near pre-conflict levels following last month’s interim peace agreement between the United States and Iran, investors will be looking for management’s latest outlook on travel demand, operating costs and profitability through the remainder of 2026. Delta shares have advanced more than 34% year to date. Levi Strauss & Co stock price Delta Airlines stock priceThe post Five Key Market Events Investors Will Be Watching This Week appeared first on US Editors. Original: Five Key Market Events Investors Will Be Watching This Week

Levi Strauss jumps 8% after strong Q1 results and higher outlookApril 8, 2026 6:52 AM
IH Market News
Levi Strauss & Co. (NYSE:LEVI) posted first-quarter results that came in above Wall Street expectations, reporting adjusted earnings per share of $0.42, exceeding forecasts by $0.05, while revenue reached $1.7 billion compared with analyst estimates of $1.65 billion.Shares of the denim group climbed more than 8% in premarket trading on Wednesday as of 05:15 ET.Company revenue rose 14% on a reported basis and 9% organically from the same quarter a year earlier. Levi also lifted its full-year fiscal 2026 adjusted EPS outlook to between $1.42 and $1.48, up from its previous guidance of $1.40 to $1.46. The midpoint of the revised range, $1.45, remains slightly below the analyst consensus estimate of $1.46.“We delivered very strong financial performance in the first quarter driven by broad-based growth across channels, regions and categories,” said Michelle Gass, President and CEO. “Our evolution into a DTC-first denim lifestyle brand is allowing us to capture a much larger addressable market and deliver faster and more consistent growth.”Direct-to-consumer (DTC) net revenue increased 16% on a reported basis and 10% organically, with comparable DTC sales rising 7%. DTC accounted for 52% of total net revenue during the quarter. Wholesale net revenue climbed 12% on a reported basis and 8% organically.Analysts at Barclays reaffirmed their Overweight rating on Levi’s shares, noting that the company’s “fundamentals remain strong and encouraging with further proof points that its long-term strategic initiatives are working.”Separately, analysts at Bank of America said the results demonstrated “broad-based sales strength with increasing commitment to flow-through.”From a regional perspective, net revenue in the Americas rose 9% on a reported basis and 7% organically. Europe posted growth of 24% on a reported basis and 10% organically, while Asia saw net revenue increase 13% on a reported basis and 12% organically.Adjusted EBIT margin came in at 12.5%, compared with 13.4% in the same period last year, reflecting the impact of tariffs and higher advertising spending. Gross margin was 61.9%, slightly lower than the 62.1% recorded a year earlier, mainly due to tariffs, partly offset by price increases and reduced promotional activity.The company also raised its fiscal 2026 outlook for reported net revenue growth to a range of 5.5% to 6.5%, compared with its prior forecast of 5% to 6%. Its projection for organic net revenue growth was also increased to 4.5% to 5.5%, from the earlier range of 4% to 5%.Levi Strauss & Co stock price

Original: Levi Strauss jumps 8% after strong Q1 results and higher outlook

Levi Strauss & Co. Reports First-Quarter ResultsApril 7, 2026 4:10 PM
Business Wire
Sales, Margins and EPS Above Guidance


Reported Net Revenues up 14%, Organic Net Revenues up 9%


Continuing Operations Diluted EPS of $0.45, Adj Diluted EPS of $0.42


Company Raises Full Year 2026 Net Revenue, Margins and EPS Outlook


Chief Financial and Growth Officer Harmit Singh Will Retire After a Planned Transition


Levi Strauss & Co. (NYSE: LEVI) today announced financial results for the first quarter ended March 1, 2026.


“We delivered very strong financial performance in the first quarter driven by broad-based growth across channels, regions and categories,” said Michelle Gass, President and CEO of Levi Strauss & Co. “Our evolution into a DTC-first denim lifestyle brand is allowing us to capture a much larger addressable market and deliver faster and more consistent growth. Today we are operating from a stronger foundation, executing with focus and intention, with more ways to win than ever before.”


“We are pleased to report first quarter revenue, margins and EPS above our guidance,” said Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co. “Our strategic transformation is translating into higher returns and more profitable growth, enabling us to convert more of our strong revenue growth into bottom-line profit. Our great start to the year in Q1 and positive quarter-to-date trends, give us the confidence to raise our full-year sales, margins and EPS guidance even as we remain prudent about the external environment.”


Financial Highlights for the First Quarter



Net Revenues of $1.7 billion increased 14% on a reported basis and 9% on an organic basis versus Q1 2025.


In the Americas, net revenues increased 9% on a reported basis and increased 7% on an organic basis. Within the Americas, the U.S. increased 4% on a reported basis and organic basis.



In Europe, net revenues increased 24% on a reported basis and 10% on an organic basis.



In Asia, net revenues increased 13% on a reported basis and 12% on an organic basis.



Beyond Yoga® increased 23% on a reported and organic basis.






DTC (Direct-to-Consumer) net revenues increased 16% on a reported basis and 10% on an organic basis. DTC growth on a reported basis reflected a 10% increase in the U.S., a 19% increase in Europe and an 18% increase in Asia. DTC growth on an organic basis reflected a 10% increase in the U.S., a 5% increase in Europe and a 16% increase in Asia. Net revenues from e-commerce grew 21% on a reported basis and 17% on an organic basis. DTC comparable sales growth was 7%. DTC comprised 52% of total net revenues in the first quarter.



Wholesale net revenues increased 12% on a reported basis and 8% on an organic basis.





 






 






Net Revenues






 






 






 






 






 






Operating Income (loss)






 






 








 






 






Three Months Ended






 






Increase




(Decrease)




As




Reported






 






Increase




(Decrease)




Organic




Net Revenues






 






Three Months Ended






 






Increase




(Decrease)




As




Reported








($ millions)






 






March 1,

2026






 






March 2,

2025






 






 






 






March 1,

2026






 






March 2,

2025






 








Americas






 






$






856






 






$






783






 






9






%






 






7






%






 






$






163






 






 






$






170






 






 






(4






)%








Europe






 






$






496






 






$






400






 






24






%






 






10






%






 






$






129






 






 






$






102






 






 






26






%








Asia






 






$






347






 






$






308






 






13






%






 






12






%






 






$






70






 






 






$






58






 






 






22






%








Beyond Yoga®






 






$






43






 






$






35






 






23






%






 






23






%






 






$






(1






)






 






$






(3






)






 






73






%









___________








* Not meaningful








Operating margin was 11.4% in Q1 2026 compared to 12.5% in Q1 2025. Adjusted EBIT margin was 12.5% in Q1 2026 compared to 13.4% in Q1 2025, reflecting the impact of tariffs and planned increases in advertising.


Gross margin was 61.9% compared to 62.1% in Q1 2025 primarily due to the impact of tariffs, partially offset by price increases and less promotional activity.



Selling, general and administrative (SG&A) expenses were $872 million compared to $749 million in Q1 2025. Adjusted SG&A expenses were up 15.7% to $861 million compared to $744 million last year primarily due to the planned higher advertising costs in connection with the launch of the Behind Every Original campaign, the higher-than-expected sales volume and foreign exchange.






Interest and other income (expense), net, which includes foreign exchange gains and losses, were income of $30 million and expenses of $15 million in the aggregate in Q1 2026 and Q1 2025, respectively.



The effective income tax rate was 22.4%, compared to 20.6% in Q1 2025.



Net income from continuing operations was $177 million compared to $140 million in Q1 2025. Adjusted net income was $167 million compared to $150 million in Q1 2025.



Diluted earnings per share from continuing operations was $0.45 compared to $0.35 in Q1 2025. Adjusted diluted earnings per share was $0.42 compared to $0.38 in Q1 2025.



Highlights include:




 






Three Months Ended






 






Increase




As




Reported






 






Increase




Organic




Net Revenues








($ millions)






March 1,

2026






 






March 2,

2025






 






 








Net revenues






$






1,742






 






 






$






1,527






 






14






%






 






9






%








DTC Comparable Sales Growth






 






7






%






 






+






 






*






 






*









 






Three Months Ended






 






Increase




(Decrease)




As




Reported






 






Increase




(Decrease)




Constant




Currency








($ millions, except per-share amounts)






March 1,

2026






 






March 2,

2025






 






 








Net income from continuing operations






$






177






 






$






140






 






26






%






 






*








Adjusted net income






$






167






 






$






150






 






11






%






 






7






%








Adjusted EBIT






$






218






 






$






204






 






7






%






 






(2






)%








Diluted earnings per share from continuing operations






$






0.45






 






$






0.35






 






10






¢






 






*








Adjusted diluted earnings per share






$






0.42






 






$






0.38






 






4






¢






 






3






¢









___________








* Not provided








+ For the three-month period ended March 2, 2025 the DTC Comparable Sales Growth was in the high-single digits.







Additional information regarding DTC Comparable sales growth, a key metric, is provided at the end of this press release.


Additional information regarding Adjusted SG&A, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, Adjusted diluted earnings per share, Adjusted free cash flow, as well as amounts presented on an organic net revenues basis and constant currency basis, all of which are non-GAAP financial measures, is provided at the end of this press release.


Balance Sheet Review as of March 1, 2026



Cash and cash equivalents were $717 million, while total liquidity was approximately $1.6 billion.



Total inventories increased 4% on a dollar basis compared to Q1 2025.



Dockers® Sale


On July 31, 2025, the company sold the Dockers® intellectual property and operations in the U.S. and Canada. The company completed the sale of the remaining Dockers® operations in multiple closings during the first quarter of 2026, with the final closing on February 27, 2026.


Leadership Update


LS&Co. also announced that Executive Vice President and Chief Financial & Growth Officer (CFGO) Harmit Singh will continue in his role as CFGO until a successor is appointed and then transition to serve as Special Advisor, following which he will retire. LS&Co. has initiated a search for his successor.


Shareholder Returns


In the first quarter, the company returned $214 million to shareholders, a 163% increase over prior year, including:



Dividends of $54 million, representing a dividend of $0.14 per share, up 5% from prior year;



The company launched a $200 million accelerated share repurchase program, and took delivery of and retired approximately 8 million shares which had an aggregate cost of $160 million based on the January 29, 2026 closing share price. The remaining shares are expected to be settled at the end of the program.



As of March 1, 2026, the company had $240 million remaining under its current share repurchase authorization, which has no expiration date.


The company declared a dividend of $0.14 per share totaling approximately $54 million, payable in cash on May 6, 2026 to the holders of record of Class A common stock and Class B common stock at the close of business on April 22, 2026.


Fiscal 2026 Guidance


Guidance for 2026 is based on continuing operations, reflecting the Dockers® business being reported in discontinued operations. Guidance assumes U.S. tariffs on imports from China remain at 30% and Rest-of-World at 20%.


The following guidance is provided for the year ending November 29, 2026:



Reported net revenues growth: Raised to 5.5% to 6.5%, up from 5% to 6%



Organic net revenues growth: Raised to 4.5% to 5.5%, up from 4% to 5%



Gross margin: Raised to flat to slightly up to prior year, up from flat to prior year



Adjusted EBIT margin: Raised to expanding to approximately 12%, up from 11.8% to 12%



Tax rate: Approximately 23%, 2 points higher than prior year



Adjusted diluted EPS: Raised to $1.42 to $1.48, up from $1.40 to $1.46. This includes an approximate $0.04 headwind from a higher tax rate.



This outlook also assumes no significant worsening of macro-economic pressures on the consumer, inflationary pressures, supply chain disruptions, potential tariffs or currency fluctuations. A reconciliation of non-GAAP forward looking information to the corresponding GAAP measures cannot be provided without unreasonable efforts due to the challenge in quantifying various items including but not limited to, the effects of foreign currency fluctuations, taxes, potential tariffs, and any future restructuring, restructuring-related, severance and other charges.


Investor Conference Call


To access the conference call, please pre-register on https://register-conf.media-server.com/register/BI4391912d5cca47dc963b96026f1401cc and you will receive confirmation with dial-in details. A live webcast of the event can be accessed on https://edge.media-server.com/mmc/p/jpff4vek.


A replay of the webcast will be available on http://investors.levistrauss.com starting approximately two hours after the event and archived on the site for one quarter.


About Levi Strauss & Co.


Levi Strauss & Co. (LS&Co.) is one of the world's largest brand-name apparel companies and a global leader in jeanswear. The company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's®, Levi Strauss Signature™, and Beyond Yoga® brands. Its products are sold in approximately 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,300 retail stores and shop-in-shops. Levi Strauss & Co.'s reported 2025 net revenues were $6.3 billion. For more information, go to http://levistrauss.com, and for financial news and announcements go to http://investors.levistrauss.com.


Forward-Looking Statements


This press release and related conference call contains, in addition to historical information, forward-looking statements, including statements related to: future financial results, including the company’s expectations for the full fiscal year 2026 net revenues (both reported and on an organic net revenues basis), gross margin, adjusted EBIT margins, adjusted SG&A, adjusted diluted earnings per share and effective tax rate; business and market outlook; consumer preferences; progress against strategic priorities; the ongoing restructuring of our operations and our ability to achieve any anticipated cost savings associated with such restructuring; trajectory of direct-to-consumer business; macroeconomic conditions, including impacts of and uncertainties around U.S. tariffs and any additional retaliatory measures by impacted exporting countries; impacts of foreign currency exchange; capital expenditures; pricing initiatives; inventory growth; new store openings; investments in high growth initiatives; future dividend payments and share repurchases; and efforts to diversify product categories and distribution channels, and the related revenue projections. The company has based these forward-looking statements on its current reasonable assumptions, expectations and projections about future events. Words such as, but not limited to, “believe,” “will,” “may,” “so we can,” “when,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “could” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessary estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties, some of which are beyond our control, that could cause actual results to differ materially from those suggested by the forward-looking statements. Investors should consider the information contained in the company's filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for fiscal 2025, especially in the “Management's Discussion and Analysis of Financial Condition and Results of Operations”, “Summary of Risk Factors” and “Risk Factors” sections, and its Quarterly Report on Form 10-Q for the quarter ended March 1, 2026, especially in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, section. Other unknown or unpredictable factors also could have material adverse effects on future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release and related conference call may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if no date is stated, as of the date of this press release and related conference call. The company is not under any obligation and does not intend to update or revise any of the forward-looking statements contained in this press release and related conference call to reflect circumstances existing after the date of this press release and related conference call or to reflect the occurrence of future events, even if such circumstances or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.


Key Metrics


DTC Comparable sales growth is used by management to evaluate the performance of our existing Levi’s® brand company owned and operated mainline and outlet store base and owned digital channels by measuring year-over-year changes in net revenues for stores open for at least 12 full fiscal months, excluding the effects of changes in our store portfolio and other events that materially affect comparability such as significant relocations, or expansions and remodels. In fiscal years with 53 weeks, the impact of the additional week is excluded, and prior-year periods are adjusted as necessary to align comparable weeks. DTC Comparable sales growth is presented on a constant currency basis and is intended as a supplemental operating metric, which may not be comparable to similarly titled measures used by other companies.


Non-GAAP Financial Measures


The company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP) and the rules of the SEC. To supplement its financial statements prepared and presented in accordance with GAAP, the company uses certain non-GAAP financial measures, such as Adjusted SG&A, Adjusted SG&A margin, Adjusted EBIT (both reported and on a constant-currency basis), Adjusted EBIT margin (both reported and on a constant-currency basis), Adjusted EBITDA, Adjusted net income (both reported and on a constant-currency basis), Adjusted diluted earnings per share (both reported and on a constant-currency basis), organic net revenues, Adjusted free cash flow, and return on invested capital to provide investors with additional useful information about its financial performance, to enhance the overall understanding of its past performance and future prospects and to allow for greater transparency with respect to important metrics used by management for financial and operating decision-making. The company presents these non-GAAP financial measures to assist investors in seeing its financial performance from management's view and because it believes they provide an additional tool for investors to use in computing the company's core financial performance over multiple periods with other companies in its industry. The tables found below present Adjusted SG&A, Adjusted SG&A margin, Adjusted EBIT (both reported and on a constant-currency basis), Adjusted EBIT margin (both reported and on a constant-currency basis), Adjusted EBITDA, Adjusted net income (both reported and on a constant-currency basis), Adjusted diluted earnings per share (both reported and on a constant-currency basis), organic net revenues, Adjusted free cash flow, and return on invested capital and corresponding reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Certain items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company’s financial position, results of operations and cash flows and should therefore be considered in assessing the company’s actual financial condition and performance. Non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgment by management in determining how they are formulated. Some specific limitations include but are not limited to, the fact that such non-GAAP financial measures: (a) do not reflect cash outlays for capital expenditures, contractual commitments or liabilities including pension obligations, post-retirement health benefit obligations and income tax liabilities; (b) do not reflect changes in, or cash requirements for, working capital requirements; and (c) do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on indebtedness. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. The company urges investors to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate its business. See “RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES” below for reconciliation to the most comparable GAAP financial measures. A reconciliation of non-GAAP forward looking information to the corresponding GAAP measures cannot be provided without unreasonable efforts due to the challenge in quantifying various items including but not limited to, the effects of foreign currency fluctuations, taxes, and any future restructuring, restructuring-related, severance and other charges.


Organic Net Revenues and Constant-Currency


The company reports net revenues in accordance with GAAP, as well as on an organic net revenues basis in order to facilitate period-to-period comparisons of our revenues which excludes the impact of fluctuating foreign currency exchange rates from the change in reported net revenues, net revenues derived from business acquisitions, divestitures or wind downs impacting the comparable reporting date and the estimated impact of any 53rd week. The company reports certain operating results in accordance with GAAP, as well as on a constant-currency basis in order to facilitate period-to-period comparisons of its results without regard to the impact of fluctuating foreign currency exchange rates. These measures exclude the results of our Dockers® business, which is classified as discontinued operations.


The term foreign currency exchange rates refers to the exchange rates used to translate the company's operating results for all countries where the functional currency is not the U.S. Dollar into U.S. Dollars. Because the company is a global company, foreign currency exchange rates used for translation may have a significant effect on its reported results. In general, the company's financial results are affected positively by a weaker U.S. Dollar and are affected negatively by a stronger U.S. Dollar as compared to the foreign currencies in which it conducts its business. References to operating results on a constant-currency basis mean operating results without the impact of foreign currency translation fluctuations.


The company calculates constant-currency amounts by translating local currency amounts in the prior-year period at actual foreign currency exchange rates for the current period. Constant-currency results do not eliminate the transaction currency impact, which primarily includes the realized and unrealized gains and losses recognized from the measurement and remeasurement of purchases and sales of products in a currency other than the functional currency and of forward foreign exchange contracts.


The company believes disclosure of organic net revenues and Adjusted EBIT constant-currency, Adjusted EBIT Margin constant-currency and Adjusted Net Income constant-currency results is helpful to investors because it facilitates period-to-period comparisons of its results by increasing the transparency of the underlying performance by excluding the impact of fluctuating foreign currency exchange rates. However, organic net revenues and constant-currency results are non-GAAP financial measures and are not meant to be considered in isolation or as a substitute for comparable measures prepared in accordance with GAAP. Organic net revenues and constant-currency results have no standardized meaning prescribed by GAAP, are not prepared under any comprehensive set of accounting rules or principles and should be read in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Organic net revenues and constant-currency results have limitations in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.


Source: Levi Strauss & Co. Investor Relations




LEVI STRAUSS & CO. AND SUBSIDIARIES




CONSOLIDATED BALANCE SHEETS










 



 






 






 






 








 






(Unaudited)

March 1,




2026






 






November 30,

2025








 






 






 






 








 






(Dollars in millions)








ASSETS








Current Assets:






 






 






 








Cash and cash equivalents






$






716.6






 






 






$






757.9






 








Short-term investments in marketable securities






 






95.4






 






 






 






90.9






 








Trade receivables, net






 






728.9






 






 






 






774.7






 








Inventories






 






1,120.6






 






 






 






1,237.7






 








Other current assets






 






248.0






 






 






 






238.5






 








Current assets held for sale






 






—






 






 






 






54.0






 








Total current assets






 






2,909.5






 






 






 






3,153.7






 








Property, plant and equipment, net






 






669.1






 






 






 






681.8






 








Goodwill






 






282.4






 






 






 






280.6






 








Other intangible assets, net






 






193.6






 






 






 






194.4






 








Deferred tax assets, net






 






826.6






 






 






 






830.1






 








Operating lease right-of-use assets, net






 






1,154.4






 






 






 






1,148.2






 








Other non-current assets






 






539.2






 






 






 






538.7






 








Non-current assets held for sale






 






—






 






 






 






21.3






 








Total assets






$






6,574.8






 






 






$






6,848.8






 








 






 






 






 








LIABILITIES AND STOCKHOLDERS’ EQUITY








Current Liabilities:






 






 






 








Accounts payable






$






487.6






 






 






$






597.6






 








Accrued salaries, wages and employee benefits






 






201.5






 






 






 






244.7






 








Accrued sales returns and allowances






 






202.8






 






 






 






226.1






 








Short-term operating lease liabilities






 






266.7






 






 






 






260.7






 








Other accrued liabilities






 






686.7






 






 






 






703.4






 








Total current liabilities






 






1,845.3






 






 






 






2,032.5






 








Long-term debt






 






1,049.4






 






 






 






1,039.2






 








Long-term operating lease liabilities






 






1,000.5






 






 






 






1,005.6






 








Long-term employee related benefits






 






241.2






 






 






 






252.7






 








Other long-term liabilities






 






231.8






 






 






 






240.2






 








Total liabilities






 






4,368.2






 






 






 






4,570.2






 








 






 






 






 








Commitments and contingencies






 






 






 








 






 






 






 








Stockholders’ Equity:






 






 






 








Common stock — $0.001 par value; 1,200,000,000 Class A shares authorized, 98,057,678 shares and 103,620,225 shares issued and outstanding as of March 1, 2026 and November 30, 2025, respectively; and 422,000,000 Class B shares authorized, 286,514,706 shares and 286,756,831 shares issued and outstanding, as of March 1, 2026 and November 30, 2025, respectively






 






0.4






 






 






 






0.4






 








Additional paid-in capital






 






729.5






 






 






 






788.1






 








Retained earnings






 






1,863.4






 






 






 






1,897.3






 








Accumulated other comprehensive loss






 






(386.7






)






 






 






(407.2






)








Total stockholders’ equity






 






2,206.6






 






 






 






2,278.6






 








Total liabilities and stockholders’ equity






$






6,574.8






 






 






$






6,848.8






 







The notes accompanying our consolidated financial statements in our Form 10-Q for the first quarter of fiscal 2026 are an integral part of these consolidated financial statements.



LEVI STRAUSS & CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME








 



 






Three Months Ended








 






March 1,

2026






 






March 2,

2025








 






 






 






 








 






(Dollars in millions, except per share amounts)








 






(Unaudited)








Net revenues






$






1,742.5






 






 






$






1,526.8






 








Cost of goods sold






 






664.2






 






 






 






579.2






 








Gross profit






 






1,078.3






 






 






 






947.6






 








Selling, general and administrative expenses






 






871.7






 






 






 






749.3






 








Restructuring charges, net






 






7.9






 






 






 






6.7






 








Operating income






 






198.7






 






 






 






191.6






 








Interest expense






 






(13.1






)






 






 






(10.9






)








Other income (expense), net






 






42.6






 






 






 






(4.1






)








Income from continuing operations before income taxes






 






228.2






 






 






 






176.6






 








Income tax expense






 






51.1






 






 






 






36.4






 








Net income from continuing operations






 






177.1






 






 






 






140.2






 








Net income (loss) from discontinued operations, net of taxes






 






(1.3






)






 






 






(5.2






)








Net income






$






175.8






 






 






$






135.0






 








Earnings (loss) per common share:






 






 






 








Continuing operations - Basic






$






0.45






 






 






$






0.35






 








Discontinued operations - Basic






 






—






 






 






 






(0.01






)








Net income - Basic






$






0.45






 






 






$






0.34






 








 






 






 






 








Continuing operations - Diluted






$






0.45






 






 






$






0.35






 








Discontinued operations - Diluted






 






—






 






 






 






(0.01






)








Net income - Diluted






$






0.45






 






 






$






0.34






 








Weighted-average common shares outstanding:






 






 






 








Basic






 






389,907,760






 






 






 






396,576,662






 








Diluted






 






394,196,801






 






 






 






400,046,382






 







The notes accompanying our consolidated financial statements in our Form 10-Q for the first quarter of fiscal 2026 are an integral part of these consolidated financial statements.



LEVI STRAUSS & CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS








 



 






Three Months Ended








 






March 1,

2026






 






March 2,

2025








 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Cash Flows from Operating Activities:






 






 






 








Net income






$






175.8






 






 






$






135.0






 








Adjustments to reconcile net income to net cash provided by operating activities:






 






 






 








Depreciation and amortization






 






55.6






 






 






 






49.2






 








Goodwill impairment






 






—






 






 






 






2.5






 








Gain on sale of business, prior to costs to sell






 






(35.1






)






 






 






—






 








Stock-based compensation






 






15.8






 






 






 






19.3






 








Deferred income taxes






 






10.5






 






 






 






(5.7






)








Other, net






 






(7.6






)






 






 






17.0






 








Net change in operating assets and liabilities






 






(3.5






)






 






 






(164.8






)








Net cash provided by operating activities






 






211.5






 






 






 






52.5






 








Cash Flows from Investing Activities:






 






 






 








Proceeds from sale of business






 






96.3






 






 






 






—






 








Purchases of property, plant and equipment






 






(59.4






)






 






 






(66.6






)








Payments to acquire short-term investments






 






(26.8






)






 






 






(4.0






)








Proceeds from sale, maturity and collection of short-term investments






 






22.7






 






 






 






—






 








Other investing activities, net






 






(6.5






)






 






 






(0.5






)








Net cash provided by (used for) investing activities






 






26.3






 






 






 






(71.1






)








Cash Flows from Financing Activities:






 






 






 








Accelerated share repurchase






 






(200.0






)






 






 






—






 








Repurchase of common stock






 






—






 






 






 






(30.0






)








Tax withholdings on equity awards






 






(31.1






)






 






 






(18.3






)








Dividends to stockholders






 






(53.8






)






 






 






(51.4






)








Other financing activities, net






 






0.8






 






 






 






2.2






 








Net cash used for financing activities






 






(284.1






)






 






 






(97.5






)








Effect of exchange rate changes on cash and cash equivalents and restricted cash






 






5.0






 






 






 






0.5






 








Net increase (decrease) in cash and cash equivalents and restricted cash






 






(41.3






)






 






 






(115.6






)








Beginning cash and cash equivalents






 






757.9






 






 






 






690.0






 








Ending cash and cash equivalents






$






716.6






 






 






$






574.4






 








 






 






 






 








Noncash Investing Activity:






 






 






 








Property, plant and equipment acquired and not yet paid at end of period






$






27.6






 






 






$






36.3






 








Supplemental Disclosure of Cash Flow Information:






 






 






 








Cash paid for income taxes during the period, net of refunds






 






28.1






 






 






 






18.7






 









____________








Consolidated statements of cash flows include the cash flows from continuing and discontinued operations.




 







The notes accompanying our consolidated financial statements in our Form 10-Q for the first quarter of fiscal 2026 are an integral part of these consolidated financial statements.


RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES


FOR THE FIRST QUARTER AND FISCAL YEAR 2026


The following information relates to non-GAAP financial measures, and should be read in conjunction with the investor call held on April 7, 2026, discussing the company’s financial condition and results of operations as of and for the quarter ended March 1, 2026. Because the results of our Dockers® business are classified as discontinued operations, those results are not reflected in our non-GAAP measures.


In the table below, we define the following non-GAAP measures:




Most comparable GAAP measure






 






Non-GAAP measure






 






Non-GAAP measure definition








Selling, general and administrative expenses (“SG&A”)






 






Adjusted SG&A






 






SG&A expenses excluding goodwill impairment charges and restructuring related charges and other, net








SG&A margin






 






Adjusted SG&A margin






 






Adjusted SG&A as a percentage of net revenues








Net income from continuing operations






 






Adjusted EBIT






 






Net income from continuing operations excluding income tax expense, interest expense, other (income) expense, net, goodwill impairment charges, restructuring charges, net, and restructuring related charges and other, net.








Net income margin from continuing operations






 






Adjusted EBIT margin






 






Adjusted EBIT as a percentage of net revenues








Net income from continuing operations






 






Adjusted EBITDA






 






Adjusted EBIT excluding depreciation and amortization expense








Net income from continuing operations






 






Adjusted net income






 






Net income from continuing operations excluding goodwill impairment charges, restructuring charges, net, restructuring related charges and other, net, and gain on legal settlement adjusted to give effect to the income tax impact of such adjustments.








Net income margin from continuing operations






 






Adjusted net income margin






 






Adjusted net income as a percentage of net revenues.








Diluted earnings per share from continuing operations






 






Adjusted diluted earnings per share






 






Adjusted net income per weighted-average number of diluted common shares outstanding.







Adjusted SG&A:


The following table presents a reconciliation of SG&A, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted SG&A for each of the periods presented.




 






Three Months Ended








 






March 1,

2026






 






March 2,

2025








 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Most comparable GAAP measure:






 






 






 








Selling, general and administrative expenses






$






871.7






 






 






$






749.3






 








 






 






 






 








Non-GAAP measure:






 






 






 








Selling, general and administrative expenses






$






871.7






 






 






$






749.3






 








Goodwill impairment charges(1)






 






—






 






 






 






(2.5






)








Restructuring related charges and other, net(2)






 






(11.2






)






 






 






(3.2






)








Adjusted SG&A






$






860.5






 






 






$






743.6






 








 






 






 






 








SG&A margin






 






50.0






%






 






 






49.1






%








Adjusted SG&A margin






 






49.4






%






 






 






48.7






%









_____________








(1)






For the three-month period ended March 2, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia.



(2)






For the three-month period ended March 1, 2026, restructuring related charges and other, net consists primarily of attorney fees related to a gain on legal settlement of $9.8 million.



 






For the three-month period ended March 2, 2025, restructuring related charges and other, net primarily relates to consulting costs associated with our restructuring initiative of $2.1 million.


Adjusted EBIT and Adjusted EBITDA:


The following table presents a reconciliation of net income from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBIT and Adjusted EBITDA for each of the periods presented.




 






Three Months Ended








 






March 1,

2026






 






March 2,

2025








 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Most comparable GAAP measure:






 






 






 








Net income from continuing operations






$






177.1






 






 






$






140.2






 








 






 






 






 








Non-GAAP measure:






 






 






 








Net income from continuing operations






$






177.1






 






 






$






140.2






 








Income tax expense






 






51.1






 






 






 






36.4






 








Interest expense






 






13.1






 






 






 






10.9






 








Other (income) expense, net






 






(42.6






)






 






 






4.1






 








Goodwill impairment charges(1)






 






—






 






 






 






2.5






 








Restructuring charges, net(2)






 






7.9






 






 






 






6.7






 








Restructuring related charges and other, net(3)






 






11.2






 






 






 






3.2






 








Adjusted EBIT






$






217.8






 






 






$






204.0






 








Depreciation and amortization






 






55.3






 






 






 






49.1






 








Adjusted EBITDA






$






273.1






 






 






$






253.1






 








 






 






 






 








Net income margin from continuing operations






 






10.2






%






 






 






9.2






%








Adjusted EBIT margin






 






12.5






%






 






 






13.4






%









____________








(1)






For the three-month period ended March 2, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia.



(2)






For the three-month period ended March 1, 2026, restructuring charges, net consists primarily of severance and post-employment benefit charges.



 






For the three-month period ended March 2, 2025, restructuring charges, net includes $6.7 million in connection with Project Fuel consisting primarily of severance, post-employment benefit charges, contract terminations and asset impairments.



(3)






For the three-month period ended March 1, 2026, restructuring related charges and other, net consists primarily of attorney fees related to a gain on legal settlement of $9.8 million.



 






For the three-month period ended March 2, 2025, restructuring related charges and other, net primarily relates to consulting costs associated with our restructuring initiative of $2.1 million.


Adjusted Net Income:


The following table presents a reconciliation of net income from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted net income for each of the periods presented.




 






Three Months Ended






 






Twelve Months Ended








 






March 1,

2026






 






March 2,

2025






 






March 1,

2026






 






March 2,

2025








 






 






 






 






 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Most comparable GAAP measure:






 






 






 






 






 






 






 








Net income from continuing operations






$






177.1






 






 






$






140.2






 






 






$






538.9






 






 






$






360.4






 








 






 






 






 






 






 






 






 








Non-GAAP measure:






 






 






 






 






 






 






 








Net income from continuing operations






$






177.1






 






 






$






140.2






 






 






$






538.9






 






 






$






360.4






 








Property, plant and equipment impairment






 






—






 






 






 






—






 






 






 






—






 






 






 






11.1






 








Goodwill impairment charges(1)






 






—






 






 






 






2.5






 






 






 






—






 






 






 






113.9






 








Restructuring charges, net(2)






 






7.9






 






 






 






6.7






 






 






 






25.7






 






 






 






79.2






 








Restructuring related charges and other, net(3)






 






11.4






 






 






 






3.2






 






 






 






23.9






 






 






 






49.0






 








Loss on early extinguishment of debt






 






—






 






 






 






—






 






 






 






1.5






 






 






 






—






 








Gain on legal settlement






 






(33.0






)






 






 






—






 






 






 






(33.0






)






 






 






—






 








Tax impact of adjustments(4)






 






3.3






 






 






 






(2.6






)






 






 






(3.2






)






 






 






(64.4






)








Adjusted net income






$






166.7






 






 






$






150.0






 






 






$






553.8






 






 






$






549.2






 








 






 






 






 






 






 






 






 








Net income margin from continuing operations






 






10.2






%






 






 






9.2






%






 






 






 






 








Adjusted net income margin






 






9.6






%






 






 






9.8






%






 






 






 






 









_____________








(1)






 






For the three-month period ended March 2, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia.








(2)






 






For the three-month period ended March 1, 2026, restructuring charges, net consists primarily of severance and post-employment benefit charges.








 






 






For the three-month period ended March 2, 2025, restructuring charges, net includes $6.7 million in connection with Project Fuel consisting primarily of severance, post-employment benefit charges, contract terminations and asset impairments.








(3)






 






For the three-month period ended March 1, 2026, restructuring related charges and other, net consists primarily of attorney fees related to a gain on legal settlement of $9.8 million.








 






 






For the three-month period ended March 2, 2025, restructuring related charges and other, net primarily relates to consulting costs associated with our restructuring initiative of $2.1 million.








(4)






 






Tax impact calculated using the annual effective tax rate, excluding discrete costs and benefits.







Adjusted Diluted Earnings per Share:


The following table presents a reconciliation of diluted earnings per share from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted diluted earnings per share for each of the periods presented.




 






Three Months Ended








 






March 1,

2026






 






March 2,

2025








 






 






 






 








 






(Unaudited)








Most comparable GAAP measure:






 






 






 








Diluted earnings per share from continuing operations






$






0.45






 






 






$






0.35






 








 






 






 






 








Non-GAAP measure:






 






 






 








Diluted earnings per share from continuing operations






$






0.45






 






 






$






0.35






 








Goodwill impairment charges(1)






 






—






 






 






 






0.01






 








Restructuring charges, net(2)






 






0.02






 






 






 






0.02






 








Restructuring related charges and other, net(3)






 






0.02






 






 






 






0.01






 








Gain on legal settlement






 






(0.08






)






 






 






—






 








Tax impact of adjustments(4)






 






0.01






 






 






 






(0.01






)








Adjusted diluted earnings per share






$






0.42






 






 






$






0.38






 









_____________








(1)






 






For the three-month period ended March 2, 2025, goodwill impairment charges includes the recognition of a $2.5 million goodwill impairment charge related to our business in Bolivia.








(2)






 






For the three-month period ended March 1, 2026, restructuring charges, net consists primarily of severance and post-employment benefit charges.








 






 






For the three-month period ended March 2, 2025, restructuring charges, net includes $6.7 million in connection with Project Fuel consisting primarily of severance, post-employment benefit charges, contract terminations and asset impairments.








(3)






 






For the three-month period ended March 1, 2026, restructuring related charges and other, net consists primarily of attorney fees related to a gain on legal settlement of $9.8 million.








 






 






For the three-month period ended March 2, 2025, restructuring related charges, severance, and other, net primarily relates to consulting costs associated with our restructuring initiative of $2.1 million.








(4)






 






Tax impact calculated using the annual effective tax rate, excluding discrete costs and benefits.







Adjusted Free Cash Flow:


Adjusted free cash flow, a non-GAAP financial measure, includes net cash flow from operating activities less purchases of property, plant and equipment from continuing and discontinued operations. This measure therefore includes the results of our Dockers® business, which is classified as discontinued operations. We believe Adjusted free cash flow is an important liquidity measure of the cash that is available after capital expenditures for operational expenses and investment in our business. We believe Adjusted free cash flow is useful to investors because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth and return capital to stockholders.


The following table presents a reconciliation of net cash flow from operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted free cash flow for each of the periods presented.




 






Three Months Ended








 






March 1,

2026






 






March 2,

2025








 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Most comparable GAAP measure:






 






 






 








Net cash provided by operating activities






$






211.5






 






 






$






52.5






 








Net cash provided by (used for) investing activities






 






26.3






 






 






 






(71.1






)








Net cash used for financing activities






 






(284.1






)






 






 






(97.5






)








 






 






 






 








Non-GAAP measure:






 






 






 








Net cash provided by operating activities






$






211.5






 






 






$






52.5






 








Purchases of property, plant and equipment






 






(59.4






)






 






 






(66.6






)








Adjusted free cash flow






$






152.1






 






 






$






(14.1






)







Return on Invested Capital:


We define Return on invested capital (“ROIC”) as the trailing four quarters of Adjusted net income before interest and after taxes divided by the average trailing five quarters of total invested capital. We define total invested capital as total debt plus shareholders' equity less cash and short-term investments. We believe ROIC is useful to investors as it quantifies how efficiently we generated operating income relative to the capital we have invested in the business.


Our calculation of ROIC is considered a non-GAAP financial measure because we calculate ROIC using the non-GAAP metric Adjusted net income. Although ROIC is a standard financial metric, numerous methods exist for calculating a company's ROIC. As a result, the method we use to calculate our ROIC may differ from the methods used by other companies. This metric is not defined by GAAP and should not be considered as an alternative to earnings measures defined by GAAP.


The table below sets forth the calculation of ROIC for each of the periods presented.




 






Trailing Four Quarters








 






March 1,

2026






 






March 2,

2025








 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Net income from continuing operations






$






538.9






 






 






$






360.4






 








 






 






 






 








Numerator






 






 






 








Adjusted net income(1)






$






553.8






 






 






$






549.2






 








Interest expense






 






50.9






 






 






 






42.7






 








Adjusted income tax expense






 






149.9






 






 






 






111.3






 








Adjusted net income before interest and taxes






$






754.6






 






 






$






703.2






 








Income tax adjustment(2)






 






(160.7






)






 






 






(118.6






)








Adjusted net income before interest and after taxes






$






593.9






 






 






$






584.6






 








_____________



(1)







Adjusted net income is reconciled from net income from continuing operations which is the most comparable GAAP measure. Refer to Adjusted net income table for more information.








(2)







Tax impact calculated using the adjusted annual effective tax rate, excluding discrete costs and benefits.









 






Average Trailing Five Quarters








 






March 1,

2026






 






March 2,

2025








 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Denominator






 






 






 








Total debt, including operating lease liabilities






$






2,339.4






 






 






$






2,174.9






 








Shareholders' equity






 






2,083.2






 






 






 






1,842.1






 








Cash and Short-term investments






 






(663.0






)






 






 






(599.9






)








Total invested Capital






$






3,759.6






 






 






$






3,417.1






 








 






 






 






 








Net income to Total invested capital






 






14.3






%






 






 






10.5






%








Return on Invested Capital







15.8






%






 






 






17.1






%







Organic Net Revenues:


The table below sets forth the calculation of net revenues by segment on an organic net revenues basis for each of the periods presented.




 






Three Months Ended








 






March 1,

2026






 






March 2,

2025






 






% Increase




(Decrease)








 






 






 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Total net revenues(1)






 






 






 






 






 








As reported






$






1,742.5






 






$






1,526.8






 






 






14.1






%








Impact of foreign currency exchange rates






 






—






 






 






70.8






 






 






 








Net revenues from Denizen® wind down(2)






 






—






 






 






(2.3






)






 






 








Organic net revenues






$






1,742.5






 






$






1,595.3






 






 






9.2






%








Americas






 






 






 






 






 








As reported






$






855.7






 






$






783.0






 






 






9.3






%








Impact of foreign currency exchange rates






 






—






 






 






18.4






 






 






 








Net revenues from Denizen® wind down(2)






 






—






 






 






(2.3






)






 






 








Organic net revenues - Americas






$






855.7






 






$






799.1






 






 






7.1






%








Europe






 






 






 






 






 








As reported






$






496.0






 






$






400.5






 






 






23.8






%








Impact of foreign currency exchange rates






 






—






 






 






51.3






 






 






 








Organic net revenues - Europe






$






496.0






 






$






451.8






 






 






9.8






%








Asia






 






 






 






 






 








As reported






$






347.5






 






$






308.1






 






 






12.8






%








Impact of foreign currency exchange rates






 






—






 






 






1.1






 






 






 








Organic net revenues - Asia






$






347.5






 






$






309.2






 






 






12.4






%








Beyond Yoga®






 






 






 






 






 








As reported






$






43.3






 






$






35.2






 






 






23.0






%








Organic net revenues - Beyond Yoga®






$






43.3






 






$






35.2






 






 






23.0






%








_____________



(1)







These measures exclude the results of our Dockers® business, which is classified as discontinued operations.








(2)







Foreign currency did not significantly impact net revenues from Denizen® wind down for the three months ended March 2, 2025.







The table below sets forth the calculation of net revenues by channel on an organic net revenues basis for each of the periods presented.




 






Three Months Ended








 






March 1,

2026






 






March 2,

2025






 






% Increase




(Decrease)








 






 






 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Total net revenues(1)






 






 






 






 






 








As reported






$






1,742.5






 






$






1,526.8






 






 






14.1






%








Impact of foreign currency exchange rates






 






—






 






 






70.8






 






 






 








Net revenues from Denizen® wind down(2)






 






—






 






 






(2.3






)






 






 








Organic net revenues






$






1,742.5






 






$






1,595.3






 






 






9.2






%








Wholesale






 






 






 






 






 








As reported






$






831.0






 






$






739.3






 






 






12.4






%








Impact of foreign currency exchange rates






 






—






 






 






29.5






 






 






 








Net revenues from Denizen® wind down(2)






 






—






 






 






(2.3






)






 






 








Organic net revenues - Wholesale






$






831.0






 






$






766.5






 






 






8.4






%








DTC






 






 






 






 






 








As reported






$






911.5






 






$






787.5






 






 






15.7






%








Impact of foreign currency exchange rates






 






—






 






 






41.3






 






 






 








Organic net revenues - DTC






$






911.5






 






$






828.8






 






 






10.0






%








_____________



(1)







These measures exclude the results of our Dockers® business, which is classified as discontinued operations.








(2)







Foreign currency did not significantly impact net revenues from Denizen® wind down for the three months ended March 2, 2025.







The table below sets forth the calculation of net revenues by brand on an organic net revenues basis for each of the periods presented.




 






Three Months Ended








 






March 1,

2026






 






March 2,

2025






 






% Increase




(Decrease)








 






 






 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Total Levi’s Brands net revenues






 






 






 






 






 








As reported






$






1,699.2






 






$






1,491.6






 






 






13.9






%








Impact of foreign currency exchange rates






 






—






 






 






70.8






 






 






 








Net revenues from Denizen® wind down(1)






 






—






 






 






(2.3






)






 






 








Organic net revenues






$






1,699.2






 






$






1,560.1






 






 






8.9






%








 






 






 






 






 






 








Levi’s®






 






 






 






 






 








As reported






$






1,633.5






 






$






1,432.8






 






 






14.0






%








Impact of foreign currency exchange rates






 






—






 






 






70.6






 






 






 








Organic net revenues - Levi’s®






$






1,633.5






 






$






1,503.4






 






 






8.7






%








 






 






 






 






 






 








Levi Strauss SignatureTM






 






 






 






 






 








As reported






$






65.7






 






$






56.5






 






 






16.3






%








Impact of foreign currency exchange rates






 






—






 






 






0.2






 






 






 








Organic net revenues - Levi Strauss SignatureTM






$






65.7






 






$






56.7






 






 






15.9






%








 






 






 






 






 






 








Denizen®






 






 






 






 






 








As reported






$






—






 






$






2.3






 






 






(100.0






)%








Impact of foreign currency exchange rates






 






—






 






 






—






 






 






 








Net revenues from Denizen® wind down(1)






 






—






 






 






(2.3






)






 






 








Organic net revenues - Denizen®






$






—






 






$






—






 






 






*








___________



(1)







Foreign currency did not significantly impact net revenues from Denizen® wind down for the three months ended March 2, 2025.










 







* Not meaningful


Constant-Currency Adjusted EBIT and Constant-Currency Adjusted EBIT margin:


The table below sets forth the calculation of Adjusted EBIT and Adjusted EBIT margin on a constant-currency basis for each of the periods presented.




 






Three Months Ended








 






March 1,

2026






 






March 2,

2025






 






% Increase (Decrease)








 






 






 






 






 






 








 






(Dollars in millions)








 






(Unaudited)








Adjusted EBIT(1)






$






217.8






 






 






$






204.0






 






 






6.8






%








Impact of foreign currency exchange rates






 






—






 






 






 






17.3






 






 






*








Constant-currency Adjusted EBIT






$






217.8






 






 






$






221.3






 






 






(1.6






)%








 






 






 






 






 






 








Adjusted EBIT margin






 






12.5






%






 






 






13.4






%






 






(6.7






)%








Impact of foreign currency exchange rates






 






—






%






 






 






0.5






%






 






*








Constant-currency Adjusted EBIT margin(2)






 






12.5






%






 






 






13.9






%






 






(10.1






)%









_____________








(1)






 






Adjusted EBIT is reconciled from net income from continuing operations which is the most comparable GAAP measure. Refer to Adjusted EBIT and Adjusted EBITDA table for more information.








(2)






 






We define constant-currency Adjusted EBIT margin as constant-currency Adjusted EBIT as a percentage of constant-currency net revenues from continuing operations.









 



* Not meaningful







Constant-Currency Adjusted Net Income and Constant-Currency Adjusted Diluted Earnings per Share:


The table below sets forth the calculation of Adjusted net income and Adjusted diluted earnings per share on a constant-currency basis for each of the periods presented.




 






Three Months Ended








 






March 1,

2026






 






March 2,

2025






 






% Increase (Decrease)








 






 






 






 






 






 








 






(Dollars in millions, except per share amounts)








 






(Unaudited)








Adjusted net income(1)






$






166.7






 






 






$






150.0






 






 






11.1






%








Impact of foreign currency exchange rates






 






—






 






 






 






6.0






 






 






*








Constant-currency Adjusted net income






$






166.7






 






 






$






156.0






 






 






6.9






%








Constant-currency Adjusted net income margin(2)






 






9.6






%






 






 






9.8






%






 






 









 






 






 






 






 








Adjusted diluted earnings per share






$






0.42






 






 






$






0.38






 






 






10.5






%








Impact of foreign currency exchange rates






 






—






 






 






 






0.01






 






 






*








Constant-currency Adjusted diluted earnings per share






$






0.42






 






 






$






0.39






 






 






7.7






%









_____________








(1)






 






Adjusted net income is reconciled from net income from continuing operations which is the most comparable GAAP measure. Refer to Adjusted net income table for more information.








(2)






 






We define constant-currency Adjusted net income margin as constant-currency Adjusted net income as a percentage of constant-currency net revenues from continuing operations.









 



* Not meaningful







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260407863315/en/
Investor Contact:

Aida Orphan

Levi Strauss & Co. (415) 501-6194

Investor-Relations@levi.com
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Levi Strauss & Co.

(415) 501-7777

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Original: Levi Strauss & Co. Reports First-Quarter Results