The EPS beat and raised profit guidance are clearly positive, but the revenue miss and flat DTC comps signal slowing top-line momentum. Watch Q4 DTC performance closely — management guided for mid-single-digit DTC growth in Q4, which will be the key test of whether the holiday season can re-accelerate the direct channel.
Price Chart
Executive Summary
Levi Strauss & Co. reported Q3 2026 adjusted diluted EPS of $0.48, a 41% YoY increase and a 27% beat vs. the $0.38 consensus, driven by a 450 bps gross margin expansion to 66.2% from tariff refunds. Reported net revenue of $1.61B grew 4% YoY but missed the $1.82B consensus, as DTC comparable sales were flat and U.S. DTC revenue declined 1%. The company raised its full-year adjusted EPS guidance to $1.54-$1.56 (from $1.46-$1.52) and its adjusted EBIT margin outlook to ~12.1%, while narrowing reported revenue growth guidance to approximately 7.0% (from 7.0%-7.5%).
Key Financial Metrics
Key Facts
- Q3 2026 adjusted diluted EPS of $0.48 beat consensus of $0.38 by 27% and grew 41% YoY from $0.34
- Reported net revenue of $1.61B grew 4% YoY but missed consensus of $1.82B
- Gross margin expanded 450 bps to 66.2% (from 61.7%), with 490 bps from tariff refunds partially redeployed
- Adjusted EBIT margin expanded 370 bps to 15.5% (from 11.8%)
- DTC comparable sales growth was flat; DTC comprised 45% of total revenue (down from 52% in Q1 2026)
- Full-year 2026 adjusted EPS guidance raised to $1.54-$1.56 (from $1.46-$1.52); adjusted EBIT margin raised to ~12.1% (from 12%)
- Reported net revenue growth guidance narrowed to approximately 7.0% (from 7.0%-7.5%)
- Company plans to initiate a $100 million accelerated share repurchase program
- Dividend increased 14% to $0.16 per share
Financial Impact
EPS beat of $0.10 vs consensus ($0.48 vs $0.38) drove significant upside; revenue miss of ~$210M vs consensus ($1.61B vs $1.82B) tempers the positive read-through
Risk Factors
- Revenue miss of ~12% vs consensus ($1.61B vs $1.82B) suggests top-line headwinds, particularly in U.S. DTC which declined 1%
- Tariff refunds contributed 490 bps of gross margin expansion — this is a one-time benefit that may not recur
- Flat DTC comparable sales growth and DTC mix declining to 45% of revenue (from 52% in Q1) indicate channel shift challenges
- U.S. revenue declined 1% on a reported basis; Americas organic growth was only 2%
- Foreign exchange headwinds of $2.7M impacted reported revenue growth
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000094845-26-000048 |
| Document: levi-20261007.htm | 0000094845-26-000048 |
| Document: 0000094845-26-000048-index-headers.html | 0000094845-26-000048 |
| Document: 0000094845-26-000048-index.html | 0000094845-26-000048 |
| Document: 0000094845-26-000048.txt | 0000094845-26-000048 |
| 8-K Data (Synthetic) | 0000094845-26-000048 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Institutional Cluster | $21.13 | awaiting T+5 | — | $21.78 (+3.08%) |
Oct 15, 2026 12d ago | SC 13G/A | $20.65 $21.36 | ▲ +3.44% | ▲ +4.45% | $21.78 (+5.47%) |
Oct 7, 2026 20d ago | 8-K | $19.05 $20.65 | ▲ +8.40% | ▲ +8.68% | $21.78 (+14.33%) |
Oct 2, 2026 25d ago | Court Ruling | $20.11 $19.09 | ▼ −5.08% | ▼ −5.50% | $21.78 (+8.28%) |
Sep 30, 2026 27d ago | 8-K | $19.92 $19.05 | ▼ −4.37% | ▼ −5.67% | $21.78 (+9.34%) |
Sep 25, 2026 4w ago | Court Ruling | $19.81 $20.27 | ▲ +2.32% | ▲ +1.12% | $21.78 (+9.94%) |
Sep 21, 2026 5w ago | Court Ruling | $20.06 $19.75 | ▼ −1.55% | ▼ −0.36% | $21.78 (+8.57%) |
Sep 17, 2026 5w ago | Court Ruling | $19.82 $19.73 | ▼ −0.45% | ▼ −1.72% | $21.78 (+9.89%) |
Aug 27, 2026 8w ago | Court Ruling | $21.29 $21.06 | ▼ −1.08% | ▼ −1.19% | $21.78 (+2.30%) |
Aug 7, 2026 11w ago | 8-K | $24.41 $22.55 | ▼ −7.62% | ▼ −8.02% | $21.78 (−10.77%) |
US Market Status
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