Levi Strauss Reports Strong Q1 Sales and Profit Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 08 2026
0mins
Should l Buy LEVI?
Source: Fool
- Significant Revenue Growth: Levi Strauss reported a 14% year-over-year increase in net revenue to $1.7 billion for Q1 of fiscal 2026, indicating broad-based growth across brands, regions, and channels, which enhances market competitiveness.
- Strong DTC Performance: Direct-to-consumer revenue surged by 16%, with e-commerce sales skyrocketing by 21%, resulting in DTC sales accounting for over half of Levi's total revenue, thereby improving the company's profitability.
- Improved Profitability: Adjusted net income rose by 11% to $167 million, translating to $0.42 per share, surpassing Wall Street's expectations of $0.37, reflecting enhanced operational efficiency.
- Optimistic Outlook: Levi raised its revenue growth forecast for fiscal 2026 to 5.5%-6.5% and expects earnings per share between $1.42 and $1.48, demonstrating management's confidence in future performance.
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Analyst Views on LEVI
Wall Street analysts forecast LEVI stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 22.210
Low
26.00
Averages
26.50
High
27.00
Current: 22.210
Low
26.00
Averages
26.50
High
27.00
About LEVI
Levi Strauss & Co. is an apparel company. 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. The Company operates through three geographical segments: Americas, Europe and Asia. It designs, markets and sells directly or through third parties and licensees’ products that include jeans, casual and dress pants, activewear, tops, shorts, skirts, dresses, jackets and related accessories for men, women and children around the world. 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. Outside the United States, department stores, specialty retailers, franchised or other brand-dedicated stores and shop-in-shops have traditionally been its primary distribution channels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Levi Strauss Stock Soars on Strong Earnings Performance
- Strong Performance: Levi Strauss reported impressive earnings, with its stock soaring over 10% in a single day and up more than 52% over the past year, reflecting robust market performance and a resurgence of investor confidence.
- Leadership Change: Since Michelle Gass took over as CEO in early 2024, Levi has successfully implemented strategies focusing on direct-to-consumer channels, particularly online sales, driving revenue growth and enhancing brand influence.
- Market Positioning: Levi's price-to-earnings ratio is just over 15 times, compared to 20 times for peers like Ralph Lauren and Tapestry, indicating relative undervaluation and presenting a potential buying opportunity for investors.
- Future Outlook: If Levi can maintain its strong performance, the stock is expected to have further upside potential, especially as the company's strategies begin to yield results, leading to increasing market expectations for future growth.
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Levi Strauss & Co. Successfully Executes Turnaround Strategy
- Strategic Shift with Project Fuel: Since CEO Michelle Gass took over in 2023, Levi Strauss has strategically shifted from wholesale to direct-to-consumer sales through 'Project Fuel,' enhancing profit margins and strengthening customer relationships.
- Significant Revenue Growth: In Q1 2026, Levi's reported a 14% year-over-year increase in net revenues, indicating a strong improvement in business fundamentals following the implementation of its new strategy, which boosts market confidence.
- Upgraded Full-Year Guidance: Levi's has raised its full-year 2026 guidance for net revenue, margins, and earnings per share, reflecting a positive outlook for future growth that is likely to attract more investor interest.
- Strong Stock Performance: Over the past 12 months, Levi's stock has risen by 56%, and although it is trading near its 52-week high, it remains fairly priced at 20 times earnings, indicating its long-term investment potential.
See More
Levi Strauss Surpasses Wall Street Expectations
- Earnings Beat: In Q1 2026, Levi Strauss reported a 14% year-over-year increase in net revenues, demonstrating the positive impact of the ongoing 'Project Fuel' initiative, which is crucial for the company's turnaround.
- Stock Price Surge: Over the past 12 months, Levi's stock has risen by 56%, reflecting strong market confidence in its successful transformation, and despite trading near its 52-week high, it remains fairly valued at 20 times earnings.
- Strategic Shift: Since CEO Michelle Gass joined in 2023, the company has pivoted from wholesale to direct-to-consumer sales, enhancing profit margins and strengthening customer relationships, indicating significant future growth potential.
- Dividend Increase: Levi's announced an annual dividend of $0.56 per share, a 5% increase from the previous year, providing investors with stable returns and highlighting the company's ongoing improvement in profitability.
See More
Levi Strauss & Co. Successfully Transforms Business Model
- Strategic Transformation: Since CEO Michelle Gass took over in 2023, Levi's has strategically shifted towards a direct-to-consumer sales model through 'Project Fuel,' enhancing profit margins and strengthening customer relationships.
- Financial Performance: In Q1 2026, Levi's reported a 14% year-over-year increase in net revenue, while also raising its full-year guidance for net revenue, margins, and earnings per share, indicating a robust business foundation.
- Stock Price Surge: Over the past 12 months, Levi's stock has risen by 56%, primarily driven by positive trends from the brand's turnaround, and despite challenges like tariffs and low consumer confidence, the growth outlook remains optimistic.
- Dividend Returns: Levi's offers an annual dividend of $0.56 per share, which has increased by 5% from the previous year, providing shareholders with attractive returns and further enhancing the investment appeal amidst a solid growth trajectory.
See More
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- Delta Airlines Performance Recovery: Delta Airlines recorded positive unit revenue growth in the economy cabin for the first time in over a year, demonstrating consumer willingness to spend on air travel despite rising fuel costs and inflation pressures, reflecting resilience in the airline industry amid economic recovery.
- New Crypto Opportunities: Iran's plan to establish a formal tollbooth charging $1 per barrel for transit fees, payable in cryptocurrency, has led to a surge in Bitcoin and Ethereum prices, highlighting the crypto market's sensitivity to new use cases and potential regulatory shifts.
See More
Levi Strauss Stock Soars on Strong Earnings Performance
- Strong Performance: Levi Strauss reported impressive earnings, with its stock soaring over 10% in a single day and up more than 52% over the past year, reflecting robust market performance and a resurgence of investor confidence.
- Leadership Change: Since Michelle Gass took over as CEO in early 2024, Levi has successfully implemented strategies focusing on direct-to-consumer channels, particularly online sales, driving revenue growth and enhancing brand influence.
- Market Positioning: Levi's price-to-earnings ratio is just over 15 times, compared to 20 times for peers like Ralph Lauren and Tapestry, indicating relative undervaluation and presenting a potential buying opportunity for investors.
- Future Outlook: If Levi can maintain its strong performance, the stock is expected to have further upside potential, especially as the company's strategies begin to yield results, leading to increasing market expectations for future growth.
See More
Levi Strauss & Co. Successfully Executes Turnaround Strategy
- Strategic Shift with Project Fuel: Since CEO Michelle Gass took over in 2023, Levi Strauss has strategically shifted from wholesale to direct-to-consumer sales through 'Project Fuel,' enhancing profit margins and strengthening customer relationships.
- Significant Revenue Growth: In Q1 2026, Levi's reported a 14% year-over-year increase in net revenues, indicating a strong improvement in business fundamentals following the implementation of its new strategy, which boosts market confidence.
- Upgraded Full-Year Guidance: Levi's has raised its full-year 2026 guidance for net revenue, margins, and earnings per share, reflecting a positive outlook for future growth that is likely to attract more investor interest.
- Strong Stock Performance: Over the past 12 months, Levi's stock has risen by 56%, and although it is trading near its 52-week high, it remains fairly priced at 20 times earnings, indicating its long-term investment potential.
See More
Levi Strauss Surpasses Wall Street Expectations
- Earnings Beat: In Q1 2026, Levi Strauss reported a 14% year-over-year increase in net revenues, demonstrating the positive impact of the ongoing 'Project Fuel' initiative, which is crucial for the company's turnaround.
- Stock Price Surge: Over the past 12 months, Levi's stock has risen by 56%, reflecting strong market confidence in its successful transformation, and despite trading near its 52-week high, it remains fairly valued at 20 times earnings.
- Strategic Shift: Since CEO Michelle Gass joined in 2023, the company has pivoted from wholesale to direct-to-consumer sales, enhancing profit margins and strengthening customer relationships, indicating significant future growth potential.
- Dividend Increase: Levi's announced an annual dividend of $0.56 per share, a 5% increase from the previous year, providing investors with stable returns and highlighting the company's ongoing improvement in profitability.
See More
Levi Strauss & Co. Successfully Transforms Business Model
- Strategic Transformation: Since CEO Michelle Gass took over in 2023, Levi's has strategically shifted towards a direct-to-consumer sales model through 'Project Fuel,' enhancing profit margins and strengthening customer relationships.
- Financial Performance: In Q1 2026, Levi's reported a 14% year-over-year increase in net revenue, while also raising its full-year guidance for net revenue, margins, and earnings per share, indicating a robust business foundation.
- Stock Price Surge: Over the past 12 months, Levi's stock has risen by 56%, primarily driven by positive trends from the brand's turnaround, and despite challenges like tariffs and low consumer confidence, the growth outlook remains optimistic.
- Dividend Returns: Levi's offers an annual dividend of $0.56 per share, which has increased by 5% from the previous year, providing shareholders with attractive returns and further enhancing the investment appeal amidst a solid growth trajectory.
See More
US Postal Service Faces Severe Financial Crisis
- Postal Service Price Hike: The US Postal Service is looking to raise prices amid a severe financial crisis, which is expected to directly impact mailing costs for consumers and businesses, potentially leading to a decline in postal service usage.
- Oil Price Fluctuations: US oil prices dropped below $100 as tanker traffic through the Strait of Hormuz remains nearly at a standstill, despite a ceasefire agreement with Iran, which may affect the performance of energy-related stocks.
- Inflation Data Release: Recent data shows the personal consumption expenditures price index rose 2.8% year-over-year, with core PCE increasing by 3%, providing the Federal Reserve with crucial economic context that could influence future monetary policy decisions, despite the ongoing economic fallout from the Iran war.
- Intensifying AI Market Competition: OpenAI is attempting to reassure investors of its market position against rival Anthropic, while both Meta and Amazon are significantly increasing their investments in AI infrastructure, indicating a growing competitive landscape within the industry.
See More
Iran Ceasefire Influences Market Dynamics
- Oil Price Fluctuations: The ceasefire between the US and Iran has pushed oil prices back to the mid-$90s, leading to improved market sentiment as the S&P 500, Nasdaq, and Dow Jones indices rose by 2.5%, 2.8%, and 2.9% respectively, indicating investor optimism for market stability.
- Shipping Safety Uncertainty: Despite the ceasefire, Iran continues to restrict ship traffic through the Strait of Hormuz, claiming only a limited number of vessels will be allowed to transit daily, which may have lasting implications for global oil and gas transportation and increase market risks.
- Delta Airlines Performance Recovery: Delta Airlines recorded positive unit revenue growth in the economy cabin for the first time in over a year, demonstrating consumer willingness to spend on air travel despite rising fuel costs and inflation pressures, reflecting resilience in the airline industry amid economic recovery.
- New Crypto Opportunities: Iran's plan to establish a formal tollbooth charging $1 per barrel for transit fees, payable in cryptocurrency, has led to a surge in Bitcoin and Ethereum prices, highlighting the crypto market's sensitivity to new use cases and potential regulatory shifts.
See More
