Finance
Levi Strauss beats quarterly results estimates on strong denim demand
Published by Global Banking and Finance Review
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Quick Summary
Levi Strauss beat Q4 sales estimates due to strong denim demand, despite tariff pressures. Revenue rose 1% to $1.77 billion.
Levi Strauss Surpasses Q4 Sales Expectations Driven by Denim Demand
Levi Strauss Q4 Sales Performance
Jan 28 (Reuters) - Levi Strauss beat Wall Street estimates for fourth-quarter sales and profit on Wednesday, buoyed by strong demand for its wide-leg denim jeans despite pressure from higher U.S. import tariffs and dampened consumer spending in the country.
Strong Demand for Denim
The denim maker has benefited from strong demand for baggy, loose-fit apparel - particularly among Gen Z and younger millennial shoppers - while also leaning into full-price sales through its direct-to-consumer channel and doubling down on its popular product offerings.
Levi, which expects a hit from U.S. President Donald Trump's shifting tariff policies, in October said it had secured a bulk of its holiday inventory ahead of schedule and was raising prices modestly to ease the margin pressure.
Financial Highlights
It has exited lower-margin businesses such as Denizen and Dockers in North America over the past year, sharpening its focus on the core brand and growing its Beyond Yoga brand.
The retailer reported a 1% rise in net revenue to $1.77 billion for the quarter ended November 30, ahead of the average of analysts' estimates of $1.71 billion, according to data compiled by LSEG.
Future Outlook
Net revenues in Europe rose 8%, while those in the Americas segment fell 4% as consumer spending in the U.S. remains pressured by inflation and macroeconomic uncertainty. Beyond Yoga's revenue increased 37%.
The company posted an adjusted profit per share of 41 cents, beating analysts' estimates of 39 cents per share.
Levi expects fiscal year 2026 reported net revenue growth from continuing operations in the range of 5% to 6%, compared with analysts' average estimate of a 5.4% rise. It expects annual adjusted earnings per share in the range of $1.40 to $1.46, below analysts' average estimate of $1.48.
(Reporting by Koyena Das and Neil J Kanatt in Bengaluru; Editing by Leroy Leo)
Key Takeaways
- •Levi Strauss surpassed Q4 sales and profit estimates.
- •Strong demand for denim, especially among Gen Z.
- •Net revenue rose 1% to $1.77 billion.
- •Levi expects 5-6% revenue growth by 2026.
- •Beyond Yoga's revenue increased by 37%.
Frequently Asked Questions about Levi Strauss beats quarterly results estimates on strong denim demand
1What is net revenue?
Net revenue is the total amount of money generated from sales after deducting returns, allowances, and discounts. It reflects the actual income a company earns from its core business operations.
2What is adjusted profit per share?
Adjusted profit per share is a financial metric that indicates a company's profitability on a per-share basis, adjusted for certain non-recurring items to provide a clearer picture of ongoing performance.
3What is direct-to-consumer sales?
Direct-to-consumer sales involve selling products directly to consumers without intermediaries, such as retailers. This approach allows companies to control branding and customer experience.
