Levi Strauss & Co. reported sales at Beyond Yoga increased 23 percent on a reported and organic basis in the fiscal first quarter ended March 1, to $46 million. On an analyst call, Michelle Gass, Levi’s CEO and president, attributed the gains to Beyond Yoga’s DTC result continuing to “show solid momentum.” Beyond Yoga’s operating loss in the quarter shrank to $1 million from a loss of $3 million a year ago.

Gass added on Beyond Yoga, “The brand expands our addressable market into premium activewear, complementing our denim lifestyle portfolio. Our recently launched Seek Beyond marketing campaign and broader product offerings are gaining traction with consumers and fueling growth. While we continue to invest in the business, our operating loss narrowed in the quarter, driven by strong top line growth and gross margin expansion, reinforcing our path toward profitability.”

Beyond Yoga, acquired by Levi’s in 2021 and based in Culver City, CA, has been aggressively opening stores. It has 14 locations, including seven in California in San Jose, Century City, Santa Monica, Larchmont Village, Irvine, Walnut Creek and Corte Madera. Other stores are located in Fulton Market and Old Orchard, IL; Greenwich and Westport, CT; Houston, TX, Bellevue Square, WA; and Seaport Boston, MA. A store at Westfield Montgomery Mall in Bethesda, MD is opening soon.

First-Quarter Sales
Companywide, net revenues of $1.7 billion increased 14 percent on a reported basis and 9 percent on an organic basis versus Q1 2025.

By region for the Levi’s brand, Americas’ net revenues increased 9 percent on a reported basis and increased 7 percent on an organic basis. Within the Americas, the U.S. increased 4 percent on a reported basis and organic basis. In Europe, net revenues increased 24 percent on a reported basis and 10 percent on an organic basis. In Asia, net revenues increased 13 percent on a reported basis and 12 percent on an organic basis.

By channel, DTC (Direct-to-Consumer) net revenues increased 16 percent on a reported basis and 10 percent on an organic basis. DTC growth on a reported basis reflected a 10 percent increase in the U.S., a 19 percent increase in Europe and an 18 percent increase in Asia. DTC growth on an organic basis reflected a 10 percent increase in the U.S., a 5 percent increase in Europe and a 16 percent increase in Asia. Net revenues from e-commerce grew 21 percent on a reported basis and 17 percent on an organic basis. DTC comparable sales growth was 7 percent. DTC comprised 52 percent of total net revenues in the first quarter.

Wholesale net revenues increased 12 percent on a reported basis and 8 percent on an organic basis.


First-Quarter Profitability
Operating margin was 11.4 percent in Q1 2026 compared to 12.5 percent in Q1 2025. Adjusted EBIT margin was 12.5 percent in Q1 2026 compared to 13.4 percent in Q1 2025, reflecting the impact of tariffs and planned increases in advertising.

Gross margin was 61.9 percent compared to 62.1 percent in Q1 2025 primarily due to the impact of tariffs, partially offset by price increases and less promotional activity.

Selling, general and administrative (SG&A) expenses were $872 million compared to $749 million in Q1 2025. Adjusted SG&A expenses were up 15.7 percent to $861 million compared to $744 million last year primarily due to the planned higher advertising costs in connection with the launch of the Behind Every Original campaign, the higher-than-expected sales volume and foreign exchange.

Interest and other income (expense), net, which includes foreign exchange gains and losses, were income of $30 million and expenses of $15 million in the aggregate in Q1 2026 and Q1 2025, respectively.

The effective income tax rate was 22.4 percent, compared to 20.6 percent in Q1 2025.

Net income from continuing operations was $177 million compared to $140 million in Q1 2025. Adjusted net income was $167 million compared to $150 million in Q1 2025.

Diluted earnings per share from continuing operations was 45 cents in Q1, compared to 35 cents in Q1 2025. Adjusted diluted earnings per share was $0.42 compared to $0.38 in Q1 2025.

Management Commentary
“We delivered very strong financial performance in the first quarter driven by broad-based growth across channels, regions and categories,” said Gass in a press release. “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. Today we are operating from a stronger foundation, executing with focus and intention, with more ways to win than ever before.”
“We are pleased to report first quarter revenue, margins and EPS above our guidance,” said Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co. “Our strategic transformation is translating into higher returns and more profitable growth, enabling 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 even as we remain prudent about the external environment.”
Balance Sheet Review as of March 1, 2026
  • Cash and cash equivalents were $717 million, while total liquidity was approximately $1.6 billion.
  • Total inventories increased 4 percent on a dollar basis compared to Q1 2025.
Dockers Sale
On July 31, 2025, the company sold the Dockers intellectual property and operations in the U.S. and Canada. The company completed the sale of the remaining Dockers operations in multiple closings during the first quarter of 2026, with the final closing on February 27, 2026.
Leadership Update
LS&Co. also announced that Executive Vice President and Chief Financial & Growth Officer (CFGO) Harmit Singh will continue in his role as CFGO until a successor is appointed and then transition to serve as Special Advisor, following which he will retire. LS&Co. has initiated a search for his successor.
Shareholder Returns
In the first quarter, the company returned $214 million to shareholders, a 163 percent increase over prior year, including:
  • Dividends of $54 million, representing a dividend of $0.14 per share, up 5 percent from prior year;
  • The company launched a $200 million accelerated share repurchase program, and took delivery of and retired approximately 8 million shares which had an aggregate cost of $160 million based on the January 29, 2026 closing share price. The remaining shares are expected to be settled at the end of the program.

As of March 1, 2026, the company had $240 million remaining under its current share repurchase authorization, which has no expiration date.

The company declared a dividend of 14 cents per share totaling approximately $54 million, payable in cash on May 6, 2026 to the holders of record of Class A common stock and Class B common stock at the close of business on April 22, 2026.

Fiscal 2026 Guidance
Guidance for 2026 is based on continuing operations, reflecting the Dockers® business being reported in discontinued operations. The guidance assumes U.S. tariffs on imports from China remain at 30 percent and Rest-of-World at 20 percent.
The following guidance is provided for the year ending November 29, 2026:
  • Reported net revenues growth: Raised to 5.5 percent to 6.5 percent, up from 5 percent to 6 percent
  • Organic net revenues growth: Raised to 4.5 percent to 5.5 percent, up from 4 percent to 5 percent
  • Gross margin: Raised to flat to slightly up to prior year, up from flat to prior year
  • Adjusted EBIT margin: Raised to expanding to approximately 12 percent, up from 11.8 percent to 12 percent
  • Tax rate: Approximately 23 percent, 2 points higher than prior year
  • Adjusted diluted EPS: Raised to $1.42 to $1.48, up from $1.40 to $1.46. This includes an approximate $0.04 headwind from a higher tax rate.

Photo and chart courtesy Levi Strauss & Co.