Levi’s Stock Tumbles 4% Despite Q2 Earnings Beat and Raised Guidance— Management Says ‘More Ways to Win Than Ever’

Shares of Levi Strauss & Co. (NYSE: LEVI ) tumbled 4% on Thursday despite the apparel giant beating second-quarter expectations, raising its full-year fiscal 2026 guidance, and increasing its dividend.

The market’s negative reaction stood in sharp contrast to highly optimistic executive commentary, with management declaring the brand has “more ways to win than ever before.” Direct-to-Consumer and Lifestyle Pivot The quarter’s outperformance was primarily anchored by the brand’s ongoing evolution into a direct-to-consumer (DTC) denim lifestyle destination.

Global DTC revenues expanded 8% organically, capturing 51% of total company revenue.

Expansion beyond traditional denim bottoms into categories like tops, shorts, and activewear via Beyond Yoga—which grew 16%—accounted for roughly one-third of the quarter’s revenue growth. “The Levi’s brand is connecting with consumers around the world in more powerful ways than ever before,” said Michelle Gass, President and CEO of Levi Strauss & Co, during the earnings call. “Our evolution into a DTC-first, denim lifestyle company—with a much larger addressable market—is translating to faster growth and higher profitability.

While we are pleased with the progress, we are still in the early stages of our long-term growth journey, with more ways to win than ever before.” Read Also: Levi Strauss Flips FIFA Branding Restrictions Into ‘Guerilla Marketing Moment,’ Says Analyst Financial Highlights and Earnings Beat For the second quarter ended May 31, 2026, Levi Strauss reported net revenues of $1.56 billion, up 8% on a reported basis and 6% on an organic basis.

Driven by broad-based growth across channels, adjusted diluted earnings per share (EPS) jumped 27% year-over-year to $0.28, outpacing company expectations.

Gross margin expanded 10 basis points to 62.7%, navigating pressures from unfavorable foreign exchange and tariffs through lower product costs and disciplined pricing.

Meanwhile, adjusted EBIT margins reached 9.0%, representing a 70-basis-point improvement over the prior year.

Raised Full-Year Guidance and Dividend Increase Backed by first-half momentum, the company raised its full-year 2026 reported net revenue growth outlook to between 7.0% and 7.5%, up from its previous 5.5% to 6.5% range.

Adjusted diluted EPS guidance was also boosted to a range of $1.46 to $1.52.

Highlighting robust cash generation, Chief Financial and Growth Officer Harmit Singh noted that the company is “passing through our full Q2 beat” and increasing the quarterly dividend by 14% to $0.16 per share.

How Has LEVI Performed In 2026? Levi’s shares were up 17.50% year-to-date, 5.82% over the last month, and higher by 24.85% over the year.

It closed 1.18% lower at $24.37 per share on Thursday, and it was down 4% as last check on Thursday. ’s Edge Stock Rankings indicate that LEVI maintains a strong price trend in the short, long, and medium terms, with a solid value score.

Read Also: Levi Strauss Stock Rises On Strong Q1 Earnings Driven By Broad-Based Growth Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors.

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