On April 7, Levi Strauss & Co. reported its financial results for the first quarter ended March 1, 2026. Net revenues, margins, and EPS all exceeded guidance, and the company raised its full-year outlook. At the same time, it also announced that Chief Financial and Growth Officer Harmit Singh will step down following the appointment of a successor.
Broad-Based Growth Across Regions and Channels, Driven by DTC Strategy
Net revenues for the first quarter reached $1.7 billion, increasing 14% on a reported basis and 9% on an organic basis year-over-year. Regionally, Europe led growth with a 24% increase on a reported basis, while Asia rose 13%, maintaining strong momentum. The U.S., the company’s core market, also delivered a 4% increase.
Direct-to-consumer (DTC) was the primary growth driver. DTC revenues grew 16%, accounting for 52% of total net revenues. E-commerce also expanded by 21%, reflecting continued traction in the company’s “DTC-first” strategy.
Meanwhile, athleisure brand Beyond Yoga posted a 23% increase, highlighting ongoing diversification within the company’s portfolio.
President and CEO Michelle Gass commented: “We delivered very strong financial performance in the first quarter driven by broad-based growth across channels, regions and categories. Our evolution into a DTC-first denim lifestyle brand is allowing us to capture a much larger addressable market and deliver faster and more consistent growth.”
Profit Growth Amid Margin Pressure from Tariffs and Investments
Operating margin came in at 11.4% (down from 12.5% a year earlier), while adjusted EBIT margin was 12.5% (down from 13.4%). The decline was primarily due to the impact of tariffs and increased advertising investments tied to the “Behind Every Original” campaign.
Despite margin pressure, profitability improved. Net income rose to $177 million (from $140 million), and diluted EPS increased to $0.45 (from $0.35), indicating improved efficiency in converting revenue growth into bottom-line profit.
CFGO Harmit Singh stated: “Our strategic transformation is translating into higher returns and more profitable growth. This enables us to convert more of our strong revenue growth into bottom-line profit. Our great start to the year in Q1 and positive quarter-to-date trends give us the confidence to raise our full-year sales, margins and EPS guidance.”
Dockers Divestiture Completed, Portfolio Reshaping Advances
The company also completed the sale of its Dockers business during the first quarter of 2026, following the initial announcement in 2025. After divesting its North American operations, the remaining business was finalized on February 27. This move further sharpens the company’s focus on its core denim and lifestyle segments.
CFO Harmit Singh to Step Down Following Succession
The announcement also confirmed the planned departure of Harmit Singh, who has long led the company’s financial strategy. Singh will remain in his current role until a successor is appointed, after which he will transition to a special advisor position before retiring. A search for his successor is currently underway.
Raised Full-Year Outlook Signals Confidence in Continued Growth
Levi Strauss raised its full-year 2026 guidance, increasing its projected net revenue growth to 5.5%–6.5% and adjusted EPS to $1.42–$1.48.
While acknowledging ongoing uncertainties such as tariffs and macroeconomic conditions, management expressed strong confidence in sustaining growth, supported by Q1 performance and current business trends.
This quarter’s results underscore that the company’s shift toward a DTC-led business model is beginning to translate into tangible revenue growth, while the concurrent CFO transition marks a key inflection point in its leadership structure—together signaling that Levi Strauss is entering its next phase of growth.
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