Levi Strauss (LEVI) stock dropped after the company topped earnings estimates. New York, July 8, 2026, 18:03 (EDT)
- Levi ended the session off 1.2% at $24.37. The stock dropped another 5% or so after hours following its report.
- The company topped Q2 sales and profit forecasts and raised its outlook for the year.
- Investors seemed to zero in on the size of the raise, tariffs, and the uneven state of the U.S. apparel market.
Levi Strauss & Co. shares dropped after hours Wednesday. The denim company lifted its full-year outlook and beat estimates, but investors didn’t seem impressed after the stock’s hot streak.
Levi shares closed down 1.2% at $24.37 Monday and slid about 5% more in after-hours trading. Before the report, Levi stock was up 17.5% for the year, according to Reuters.
The move is key as Levi has stood out in what’s been a bumpy apparel sector. The company has bet on looser denim, tops, dresses, and pushing its direct-to-consumer business, shifting more sales through its own shops and sites instead of wholesale, to make up for weak demand in other areas.
Levi reported Q2 net revenue up 8% to $1.56 billion, beating the $1.52 billion estimate. Adjusted earnings per share landed at 28 cents, better than the 24 cents analysts expected.
The company now sees fiscal 2026 net revenue up 7.0% to 7.5%, above its previous 5.5% to 6.5% range. Adjusted diluted EPS guidance moves higher too, to $1.46 to $1.52 from $1.42 to $1.48.
Part of the selling was due to expectations moving up. The Wall Street Journal said Levi’s new adjusted EPS guidance, at the midpoint, came in lower than the $1.51 mean estimate from FactSet analysts.
CEO Michelle Gass called the quarter “another proof point” for Levi’s strategy and described the business as a “DTC-first, denim lifestyle company.” CFO and Growth Officer Harmit Singh said growth hit “markets, channels and categories.” Business Wire
Regional results came in mostly solid. Revenue climbed 9% in the Americas, 10% in Asia, and 4% in Europe. Beyond Yoga jumped 16%. Direct-to-consumer revenue added 11%, with wholesale up 5%.
Levi’s prices and basket trends this year have mostly tracked the rest of the industry, Consumer Edge’s Michael Gunther told Reuters. He called it “notable” because the company is trying to move into more premium products. Reuters
Still, there’s a risk Levi’s strong quarter doesn’t carry over into the second half. The company’s outlook is based on U.S. tariffs holding at 30% for China imports and 20% elsewhere. It’s also built on the idea there won’t be any major hits from consumer spending, inflation, supply issues, new tariffs or currency moves.
Peer retail names took a hit. Gap slid 3.8%, American Eagle Outfitters dropped 1.2% and Ralph Lauren shed 3.7% Wednesday. The consumer discretionary ETF XLY was down 1.8%. Reuters reported Gap and American Eagle saw softness in some women’s apparel back in May.
Levi bumped its quarterly dividend to 16 cents a share, up 14% from last year. The payout lands Aug. 5 for shareholders of record on July 22. The company said its $200 million accelerated share buyback that began in the first quarter should wrap up in the third quarter.
