Levi's posted a positive first quarter, with management attributing the strong performance to broad-based growth across product categories, regions, and channels. CEO Michelle Gass emphasized that the company’s shift toward a direct-to-consumer (DTC)-first strategy and a diversified denim lifestyle offering drove both revenue and earnings momentum. Gass noted, “Our evolution into a head-to-toe lifestyle brand is fueling accelerated growth in tops, up 13%.” The company also highlighted robust demand in both men’s and women’s segments, and particularly strong progress in expanding its addressable market beyond core denim.
Is now the time to buy LEVI? Find out in our full research report (it’s free for active Edge members).
Levi's (LEVI) Q1 CY2026 Highlights:
- Revenue: $1.74 billion vs analyst estimates of $1.65 billion (14.1% year-on-year growth, 5.6% beat)
- Adjusted EPS: $0.42 vs analyst estimates of $0.37 (13.6% beat)
- Adjusted EBITDA: $273.1 million vs analyst estimates of $249.7 million (15.7% margin, 9.4% beat)
- Management raised its full-year Adjusted EPS guidance to $1.45 at the midpoint, a 1.4% increase
- Operating Margin: 11.4%, down from 12.5% in the same quarter last year
- Locations: 1,232 at quarter end, up from 1,201 in the same quarter last year
- Constant Currency Revenue rose 9% year on year, in line with the same quarter last year
- Market Capitalization: $8.59 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Levi's’s Q1 Earnings Call
- Laurent Vasilescu (BNP Paribas) asked about sustaining momentum in an uncertain macro environment. CEO Michelle Gass cited broad-based growth and consumer response to innovation as reasons for confidence in guidance.
- Oliver Chen (TD Cowen) questioned the conservatism in outlook given strong trends, and sought clarity on U.S. wholesale drivers. CFO Harmit Singh cited prudence due to macro risks and underpenetrated categories like women's and tops.
- Irwin Boruchow (Wells Fargo) inquired about the impact of distribution center transitions and leverage expectations. Singh explained that European distribution costs are stabilizing, and U.S. costs are expected to taper as the year progresses.
- Brooke Roach (Goldman Sachs) asked about pricing power and markdown strategies. Gass explained that premiumization and full-price selling are priorities, and that no adverse demand impact has been seen from recent price increases.
- Paul Lejuez (Citi) asked about regional performance trends and macro shifts. Singh highlighted Asia’s strong start and resilience in the U.S. and Europe, with consumer demand holding steady across geographies.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will closely watch (1) the pace of DTC and e-commerce growth, especially among younger demographics; (2) the impact of product innovation and premium brand extensions on category mix; and (3) continued cost discipline and supply chain execution, particularly as tariff policy evolves. The company’s performance in key international markets and progress on direct-to-consumer initiatives will be critical to sustaining growth.
Levi's currently trades at $22.47, up from $19.71 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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