AI Earnings Predictions for Levi Strauss & Co (LEVI)

EX-99.1

2 exhibit991-3q2026pressrele.htm

EX-99.1

Document

Exhibit 99.1

FOR IMMEDIATE RELEASE

Investor Contact:  Aida Orphan  Media Contact: Mark Cazares

Levi Strauss & Co.    Levi Strauss & Co.

(415) 501-6194    (415) 501-7777

Investor-Relations@levi.com

NewsMediaRequests@levi.com

LEVI STRAUSS & CO. REPORTS THIRD-QUARTER RESULTS

REPORTED NET REVENUES UP 4%; ORGANIC NET REVENUES UP 5%

OPERATING MARGIN OF 13.8%; ADJ EBIT MARGIN OF 15.5%

CONTINUING OPERATIONS DILUTED EPS OF $0.43; ADJ DILUTED EPS OF $0.48

RAISES FULL YEAR 2026 MARGIN AND EPS OUTLOOK

SAN FRANCISCO (October 7, 2026) – Levi Strauss & Co. (NYSE: LEVI) today announced financial results for the third quarter ended August 30, 2026.

“Our third-quarter performance highlighted the power of our diversified portfolio and reinforced our confidence that we have the right strategies in place,” said Michelle Gass, President and CEO of Levi Strauss & Co. “We saw strong growth in our international and wholesale businesses, and continued momentum across our lifestyle categories. 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.”

“We delivered another quarter of mid-single-digit revenue growth while navigating a dynamic operating environment,” said Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co. “We made the decision to redeploy a majority of our tariff refund benefit back into the business during Q3 and Q4 to support future growth. Reflecting confidence in our outlook, we are raising our full-year profit guidance and plan to initiate a $100 million accelerated share repurchase program.”

Financial Highlights for the Third Quarter

•Net Revenues of $1.6 billion increased 4% on a reported basis and 5% on an organic basis versus Q3 2025.

•In the Americas, net revenues increased 4% on a reported basis and 2% on an organic basis. Within the Americas, the U.S. decreased 1% on a reported basis.

•In Europe, net revenues increased 4% on a reported basis and 5% on an organic basis.

•In Asia, net revenues increased 5% on a reported basis and 10% on an organic basis.

•Beyond Yoga® increased 9% on a reported and organic basis.

•DTC (Direct-to-Consumer) net revenues increased 2% on a reported and organic basis. DTC growth on a reported basis reflected a 2% increase in the Americas, a 1% decrease in the U.S., a 2% decrease in Europe and an 8% increase in Asia. DTC growth on an organic basis was flat in the Americas and reflected a 1% decrease in Europe and an 11% increase in Asia. Net revenues from e-commerce grew 10% on a reported and organic basis. DTC comparable sales growth was flat. DTC comprised 45% of total net revenues in the third quarter.

•Wholesale net revenues increased 6% on a reported and organic basis, driven by growth in all segments, with particularly strong performance in Europe and Asia.

Net Revenues Operating Income (loss)

Three Months Ended% Increase (Decrease) As Reported% Increase (Decrease) Organic Net RevenuesThree Months Ended% Increase (Decrease) As Reported

($ millions)August 30, 2026August 31, 2025August 30, 2026August 31, 2025

Americas$839 $806 4 %2 %$251 $189 32 %

Europe$442 $426 4 %5 %$101 $91 11 %

Asia$293 $278 5 %10 %$42 $33 25 %

Beyond Yoga® $36 $33 9 %9 %$(5)$(5)(10)%

•Operating margin was 13.8% in Q3 2026 compared to 10.8% in Q3 2025. Adjusted EBIT margin was 15.5% in Q3 2026 compared to 11.8% in Q3 2025.

◦The impact of tariff refunds contributed 490 basis points(1) of margin expansion, of which approximately 160 basis points(2) were redeployed to support the business.

◦The tariff refund benefit, net of redeployment, was 330 basis points.

•Gross margin expanded 450 basis points to 66.2% compared to 61.7% in Q3 2025.

◦The impact of tariff refunds contributed 490 basis points(1) of gross margin expansion, of which approximately 120 basis points(2) were redeployed to support the business.

◦The tariff refund benefit, net of redeployment, was 370 basis points.

•Selling, general and administrative expenses (SG&A) were $836 million compared to $776 million in Q3 2025. Adjusted SG&A was up 6.2% to $817 million compared to $769 million last year.

◦Includes approximately 40 basis points(2) of costs redeployed to support the business.

◦The remaining increase was driven primarily by selling and distribution expenses.

•Interest and other income (expense), net, which includes foreign exchange gains and losses, were expenses of $2 million(1) in Q3 2026 and expenses of $11 million in the aggregate in Q3 2025.

•The effective income tax rate was 23.4%, compared to 21.9% in Q3 2025.

•Net income from continuing operations was $169 million compared to $122 million in Q3 202

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