Levi Strauss lifts 2026 outlook after logging strong DTC sales
Overview
US apparel maker's Q1 net revenues of $1.7 billion rose 14% on a reported basis yr/yr
Adjusted net income for Q1 beat analyst expectations
Company raised full-year 2026 outlook for revenue, margins and adjusted EPS
Outlook
Levi Strauss raises 2026 reported net revenue growth outlook to 5.5%-6.5%
Company expects 2026 adjusted diluted EPS of $1.42-$1.48
Levi Strauss sees 2026 gross margin flat to slightly up from prior yr
Result Drivers
DTC AND E-COMMERCE GROWTH - Direct-to-consumer net revenues rose 16% and e-commerce grew 21%, contributing to overall sales gains
REGIONAL BROAD-BASED GROWTH - Net revenues increased across all regions, with Europe up 24%, Asia up 13%, and Americas up 9%
TARIFFS AND ADVERTISING SPEND - Gross margin declined slightly due to tariffs, while operating margin was pressured by planned higher advertising costs
Company press release: ID:nBw6YnHN6a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Adjusted EPS |
| $0.42 |
|
Q1 EPS |
| $0.45 |
|
Q1 Adjusted Net Income | Beat | $167 mln | $145.49 mln (13 Analysts) |
Q1 Gross Margin |
| 61.90% |
|
Q1 Adjusted EBIT Margin |
| 12.50% |
|
Q1 EBIT Margin |
| 11.40% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for Levi Strauss & Co is $27.00, about 37.4% above its April 6 closing price of $19.65
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago
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