DTC surge drives Levi Strauss to raise annual guidance

US-based denim leader Levi Strauss & Co. has reported robust financial results for the first quarter ended March 1, 2026, prompting the group to increase its full-year outlook. The company saw broad-based growth across all regions and channels, bolstered by its strategic pivot toward a direct-to-consumer (DTC) denim lifestyle model.

Quarterly revenue and regional performance

Net revenues reached 1.7 billion dollars, representing a 14 percent increase on a reported basis and 9 percent on an organic basis compared to the first quarter of 2025. This performance was supported by a double-digit rise in international markets.

In Europe, net revenues grew 24 percent on a reported basis and 10 percent on an organic basis. Asia followed with a 13 percent reported increase, while the Americas saw a 9 percent rise. Within the US market, revenues increased by 4 percent. The group’s activewear brand, Beyond Yoga, also performed well, seeing a 23 percent increase in net revenues.

Channel evolution and digital growth

The company’s shift toward a direct-to-consumer (DTC) model remains a primary growth engine. DTC net revenues rose 16 percent on a reported basis, now accounting for 52 percent of total net revenues for the quarter. Within this channel, e-commerce grew by 21 percent, while DTC comparable sales saw a 7 percent increase.

Wholesale net revenues also performed better than anticipated, rising 12 percent on a reported basis. Levi Strauss president and chief executive officer, Michelle Gass, noted during the earnings call that the wholesale segment is benefiting from increased partner investment in women’s categories and tops, which remain under-penetrated areas for the brand.

Profitability and shareholder returns

Net income from continuing operations rose to 177 million dollars, up from 140 million dollars in the previous year. Adjusted diluted earnings per share (EPS) reached 0.42 dollars, surpassing initial guidance.

During the quarter, the group returned 214 million dollars to shareholders through 54 million dollars in dividends and a 200 million dollars accelerated share repurchase program. The company has also completed the divestment of its Dockers business, which is now reported under discontinued operations.

Leadership transition and future outlook

The company announced that executive vice president and chief financial and growth officer, Harmit Singh, will retire after a successor is appointed. Singh will remain as a special advisor during the transition.

Reflecting on the positive start to the year, the group has adjusted its fiscal 2026 guidance. Reported net revenue growth is now expected to be between 5.5 percent and 6.5 percent, while organic growth is projected at 4.5 percent to 5.5 percent. Adjusted diluted EPS has been raised to a range of 1.42 dollars to 1.48 dollars.

"Our strategic transformation is translating into higher returns and more profitable growth," Singh stated. The updated guidance accounts for potential macro-economic pressures and assumes import tariffs from China remain at 30 percent and rest-of-world at 20 percent.

Under its premiumisation strategy, the group continues to focus on full-price selling and innovation, with its high-end Blue Tab line seeing a 40 percent increase in the quarter.