Levi Strauss & Co (LEVI) investor relations material

Executive summary

• Q3 net revenue rose 4.3% reported and 4.5% organically to $1.61B; adjusted diluted EPS was $0.48, up from $0.34 YoY.

• Wholesale and international growth, including Asia DTC, offset softer U.S. and European DTC; September DTC trends improved after targeted changes.

• Management reaffirmed its mid-single-digit annual growth algorithm and long-term 15% operating-margin target.

Financial highlights

• Q3 revenue was $1.610B, gross profit $1.066B, operating income $222.3M and continuing-operations net income $168.6M, up from $122.0M YoY.

• Adjusted EBIT was $248.7M vs. $182.3M; adjusted net income was $188.9M vs. $135.7M; adjusted diluted EPS was $0.48 vs. $0.34.

• Excluding the net tariff refund benefit, adjusted diluted EPS grew 9% YoY, driven by EBIT margin expansion and share buybacks.

• Nine-month revenue increased 8.8% reported and 6.5% organically; adjusted diluted EPS was $1.19 vs. $0.94.

Outlook and guidance

• FY26 reported revenue growth is guided at ~7%; organic growth at 5.5%–6.0%, with a stronger U.S. dollar weighing on reported growth.

• FY26 gross margin guidance implies a 130-bps YoY increase to ~63%, including ~80 bps of net tariff benefit; adjusted EBIT margin is ~12.1%, up 70 bps YoY and 40 bps excluding tariff benefits.

• FY26 adjusted diluted EPS guidance rose to $1.54–$1.56 from $1.46–$1.52, including a $0.04 net tariff refund benefit; outlook assumes a ~23% tax rate.

• Q4 organic revenue growth is expected at ~4%, with adjusted EBIT margin of 11.4%–11.6% and adjusted diluted EPS of $0.36–$0.38.

• Q4 DTC is expected to grow mid-single digits; full-year DTC growth is expected at a high-single-digit rate.