Why it matters
- Levi Strauss earned $0.48 a share on an adjusted basis in the quarter ended Aug. 30, up from $0.34, as net revenues rose 4% to $1.61 billion, the company said.
- Refunds of U.S. tariffs collected under the IEEPA emergency powers law added about $79 million to gross profit and about 490 basis points to operating margin, part of which Levi put back into the business.
- The company raised its 2026 adjusted EPS outlook to $1.54 to $1.56 from $1.46 to $1.52 and lifted its quarterly dividend 14% to $0.16 a share.
Levi Strauss & Co. raised its full-year 2026 profit forecast on Wednesday, Oct. 7, after third-quarter earnings rose and refunds of U.S. tariffs lifted its margins. The jeans maker now expects adjusted earnings of $1.54 to $1.56 a share, up from $1.46 to $1.52.
Net revenues rose 4% to $1.61 billion in the quarter ended Aug. 30, from $1.54 billion a year earlier, the company said. On an organic basis, revenue rose 5%.
Levi Strauss third-quarter results at a glance
| Q3 2026 (ended Aug. 30) | This year | Year earlier |
|---|---|---|
| Net revenues | $1.61 billion | $1.54 billion |
| Gross margin | 66.2% | 61.7% |
| Operating margin | 13.8% | 10.8% |
| Adjusted EBIT | $248.7 million | $182.3 million |
| Diluted EPS (continuing ops) | $0.43 | $0.31 |
| Adjusted diluted EPS | $0.48 | $0.34 |
Source: Levi Strauss & Co. earnings release.
Net income from continuing operations rose to $168.6 million from $122.0 million, the company said.
How much did tariff refunds help Levi Strauss?
A lot. Refunds of tariffs collected under the International Emergency Economic Powers Act (IEEPA) added about $79 million to cost of goods sold and $5 million to interest income in the quarter, Levi said. That lifted operating margin by about 490 basis points. The company said it put about 160 basis points of that back into the business, leaving a net gain of about 330 basis points.
The refunds added about $0.16 to earnings per share, or about $0.11 after the money Levi reinvested, the company said. It plans to reinvest about $60 million of refunds over the full year, including about $35 million in the fourth quarter.
Where did sales grow?
Revenue rose in every region, according to the release:
- Americas: $839 million, up 4% (U.S. revenue fell 1%)
- Europe: $442 million, up 4%
- Asia: $293 million, up 5%, and up 10% on an organic basis
Wholesale revenue rose 6%, while direct-to-consumer revenue rose 2%. Chief Executive Michelle Gass said in the release that "our DTC business is on track to deliver mid-single-digit growth in the fourth quarter."
For the full year, Levi now expects reported revenue growth of about 7.0%, compared with 7.0% to 7.5% before, and organic growth of about 6.0%, up from 5.5% to 6.0%.
Dividend and buybacks
The board declared a dividend of $0.16 a share, up 14% from a year earlier, payable Nov. 4 to holders of record on Oct. 21. Levi said it has $240 million left under its share repurchase authorization and intends to enter a $100 million accelerated share repurchase.
How did Levi Strauss stock react?
Levi Strauss (LEVI) shares were at about $19.27 at 4:54 p.m. Eastern time, down about 1.2% from the regular-session close of $19.51, according to Yahoo Finance data. The stock fell 5.0% during Wednesday's regular session from $20.53 on Tuesday.
On Tuesday, beer maker Constellation Brands beat estimates but slipped after hours. See more company news in our companies section.
Sources
- Levi Strauss & Co., Levi Strauss & Co. Reports Third-Quarter Results (Form 8-K exhibit, SEC)
- Yahoo Finance, Levi Strauss & Co. (LEVI) quote and price data
