- Levi Strauss reported fiscal Q3 net income of $168.6 million, or 43 cents per share, down from $218.1 million, or 55 cents per share, a year earlier. Sales rose about 4% to $1.61 billion from $1.54 billion, versus $1.62 billion expected.
- Tariff refunds contributed 4.9% to Q3 operating margin and gross margin, and added 16 cents to EPS, of which 5 cents were redeployed to support the business.
- Levi Strauss raised FY26 adjusted EPS guidance to $1.54–$1.56 from a prior $1.46–$1.52 range, but lowered FY net revenue growth guidance to 7%, the bottom of its prior 7%–7.5% range.
- Q3 Americas net revenues rose 4%, though U.S. revenue fell 1%. Direct-to-consumer net revenues increased 2% with roughly flat comparable sales, while wholesale revenues rose 6%; DTC was 45% of total net revenue.
- CEO Michelle Gass said the direct-to-consumer business fell short of internal expectations, but recent trends put DTC on track for mid-single-digit growth in Q4.
Quotes
“While our direct-to-consumer business fell short of our internal expectations, we moved quickly to address the shortfall and are encouraged by the strength we are seeing heading into the holiday season, including in the U.S.”
“Based on the acceleration in recent trends, our DTC business is on track to deliver mid-single-digit growth in the fourth quarter.”