Levi Strauss (LEVI) Q3 FY2026 Earnings Call: Margin Expansion, DTC Reset and Updated Guidance
Source Tradingkey
Key Takeaways
- Levi Strauss & Co. (NYSE: LEVI) reported fiscal Q3 2026 net revenue growth of 4% on a reported basis and 5% organically. Year-to-date organic revenue increased 7%.
- Gross margin expanded 450 basis points to 66.2%. Tariff refunds, net of reinvestment, contributed 370 basis points; the remaining 80-basis-point improvement reflected lower product costs, partly offset by foreign exchange.
- Global direct-to-consumer revenue grew 2%, with comparable sales flat, as weaker traffic in the U.S. and Europe offset double-digit e-commerce growth and continued strength in Asia and Latin America.
- Global wholesale revenue increased 6%, while international revenue grew 8%. Asia posted its third consecutive quarter of double-digit growth, with revenue up 10%, and China grew 13%.
- Management expects fiscal 2026 organic revenue growth of approximately 6%, reported growth of approximately 7%, and adjusted diluted EPS of $1.54 to $1.56.
- The company recorded approximately $80 million in tariff refunds and plans to reinvest roughly three-quarters of the benefit in marketing, supply-chain capabilities and targeted holiday promotions.
Core Financial Data
| Metric | Fiscal Q3 2026 result | Change or context |
|---|---|---|
| Reported net revenue | — | Up 4% year over year |
| Organic net revenue | — | Up 5% year over year |
| Gross margin | 66.2% | Up 450 basis points |
| Adjusted SG&A as a percentage of revenue | 50.8% | Included about $6 million, or 40 basis points, of tariff-benefit reinvestment |
| Adjusted EBIT margin | 15.5% | Net tariff benefit contributed 330 basis points |
| Adjusted diluted EPS | $0.48 | Included an $0.11 net benefit from tariff refunds; excluding it, EPS grew 9% |
| Inventory | — | Down 3% year over year |
| Dividends paid | $62 million | Up 11% year over year |
| Additional planned share repurchase | $100 million | To be executed through an accelerated share repurchase program |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Gold holds steady below $4,150 amid elevated US yields Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
WTI rises to near $89.50 as Middle East supply threats offset Persian Gulf recoveryWest Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
West Texas Intermediate (WTI) oil price extends its gains for the second successive day, trading around $89.50 per barrel during the Asian hours on Wednesday. Crude oil climbed as persistent risks to Middle East energy flows overshadowed signs of rising supply from the region.
Gold Price Forecast: XAU/USD retraces gains and nears two-month lows at $4,104Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and resumes its broader bearish trend, with the US Dollar (USD) appreciating across the board, as investors brace for the release of the minutes of the latest Federal Reserve (Fed) meeting.
Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and resumes its broader bearish trend, with the US Dollar (USD) appreciating across the board, as investors brace for the release of the minutes of the latest Federal Reserve (Fed) meeting.
Euro slides to a 17-month low as France's budget crisis spreads — can 1.12 hold?EUR/USD touched 1.1162 on 5 October, its weakest level in 17 months, as France's budget standoff pushed the 10-year OAT above 5% and the OAT-Bund spread to roughly 160bp — the widest since the 2011-12 eurozone debt crisis. The euro now trades near 1.1215 ahead of US jobless claims and a $22 billion 30-year Treasury auction. Here are the levels and the two scenarios to watch.
EUR/USD touched 1.1162 on 5 October, its weakest level in 17 months, as France's budget standoff pushed the 10-year OAT above 5% and the OAT-Bund spread to roughly 160bp — the widest since the 2011-12 eurozone debt crisis. The euro now trades near 1.1215 ahead of US jobless claims and a $22 billion 30-year Treasury auction. Here are the levels and the two scenarios to watch.
