Levi Strauss (LEVI) Q3 2026 earnings

Levi Strauss on Wednesday increased its profit outlook after it received tariff refunds, but gave less rosy revenue guidance.

The denim retailer raised its adjusted earnings per share expectation for the full fiscal year to between $1.54 and $1.56, from a previous range of $1.46 to $1.52. Analysts were expecting a range of between $1.52 and $1.59, according to LSEG.

The company also lowered its net revenue growth guidance for the full year to 7%, the bottom of its previously provided range of a 7% to 7.5% increase.

For its fiscal third quarter, the denim retailer said it saw a 4% increase in net revenues in the Americas, though revenue in the U.S. decreased 1%. It also reported an operating margin of 13.8% for the quarter, compared to 10.8% in the same quarter last year, boosted by tariff refunds that contributed 4.9% to operating margin and gross margin.

Levi also said its tariff refunds contributed a 16-cent benefit to its earnings per share, of which 5 cents were “redeployed to support the business.” It did not specify how it invested that money.

Here’s how Levi performed in its third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: 48 cents adjusted, it was unclear how that figure compared to the 36 cents Wall Street expected
• Revenue: $1.61 billion vs. $1.62 billion expected

For the three-month period ending Aug. 30, Levi reported net income of $168.6 million, or 43 cents per share, down from $218.1 million, or 55 cents per share, the year prior.

Sales rose roughly 4% to $1.61 billion from $1.54 billion last year.

Levi said direct-to-consumer net revenues increased 2% in the quarter, but comparable sales were roughly flat. DTC comprised 45% of total net revenue in the third quarter, the company said. On the other hand, wholesale revenues increased 6% for the quarter.

“While our direct-to-consumer business fell short of our internal expectations, we moved quickly to address the shortfall and are encouraged by the strength we are seeing heading into the holiday season, including in the U.S.,” CEO Michelle Gass said in a statement. “Based on the acceleration in recent trends, our DTC business is on track to deliver mid-single-digit growth in the fourth quarter.”

The company previously said it’s been seeing broad-based growth across its business segments, including its core Levi’s and its premium blue tab.