Levi Strauss Raises Annual Forecast Amid Strong Denim Demand

Levi Strauss & Co. on Wednesday raised its annual forecast for net sales and profit, signaling confidence in sustained demand for its denim and apparel products. The announcement came as the company reported second-quarter financial results that exceeded analyst estimates, even as broader economic uncertainty has led to more cautious consumer spending in other areas of the retail sector.

The San Francisco-based company attributed its strong performance to robust sales of its classic denim as well as newer casual apparel. Baggy and loose-fitting styles have been particularly popular among younger shoppers. According to the company, its strategy to expand beyond jeans into categories like dresses, skirts, and tops, combined with a significant investment in its higher-margin direct-to-consumer (DTC) business, has helped build momentum.

For the second quarter ending May 31, Levi's net revenue grew 8% to $1.56 billion, surpassing Wall Street's expectation of $1.52 billion. Adjusted earnings per share were 28 cents, also topping estimates of 24 cents. Following these results, the company now projects its fiscal 2026 net revenue to grow between 7.0% and 7.5%, an increase from its previous guidance of 5.5% to 6.5%.

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Levi's also lifted its adjusted earnings per share outlook to a range of $1.46 to $1.52, up from a prior forecast of $1.42 to $1.48. CEO Michelle Gass said in a statement that the continued growth was "another proof point that our strategies are working." She added, "Our evolution into a DTC-first, denim lifestyle company... is translating to faster growth and higher profitability."

The company's positive outlook contrasts with reports from some other apparel retailers who have noted uneven demand for non-essential goods. Levi's saw growth across its major markets in the quarter, with sales in the Americas rising 9%, Europe increasing by 4%, and Asia growing by 10%.