Levi Strauss raises FY margin and EPS outlook after strong Q3, plans $100 million buyback
LEVI•Levi Strauss reported Q3 revenue growth of 4% year over year and adjusted diluted EPS of $0.48, up from $0.34 a year earlier. It raised its FY 2026 outlook and plans a $100 million accelerated share repurchase program.
1. Q3 results
Levi Strauss said international and wholesale growth drove its Q3 revenue gains, while direct-to-consumer performance fell short of internal expectations. E-commerce net revenues grew 10%. Adjusted diluted EPS was $0.48, compared with $0.34 a year earlier; gross margin was 66.2% and adjusted EBIT margin was 15.5%.
2. Raised outlook
The company raised its FY 2026 adjusted diluted EPS outlook to $1.54-$1.56 and expects gross margin to increase by up to 130 basis points from the prior year. It expects adjusted EBIT margin to expand to about 12.1%. Levi Strauss attributed much of its margin expansion to tariff refunds, with a portion reinvested in the business, and plans a $100 million accelerated share repurchase program.
