Levi Strauss surpassed Wall Street’s expectations in its second-quarter earnings report released on July 8, 2026. The apparel company reported adjusted earnings per share of 28 cents, beating the anticipated 24 cents, while revenue reached $1.56 billion, exceeding the forecast of $1.52 billion. Net income climbed to $87.3 million, or 22 cents per share, up from $67 million a year earlier. Sales rose approximately 8% compared to the same quarter in the previous year.

Following the positive results, Levi Strauss raised its full-year guidance, projecting adjusted earnings per share between $1.46 and $1.52, surpassing the prior range of $1.42 to $1.48. The updated outlook also anticipates annual sales growth between 7% and 7.5%, above the earlier estimate of 5.5% to 6.5%. According to Chief Financial Officer Harmit Singh, about half of this sales growth is expected to come from increased prices, with the other half driven by higher unit sales.

Despite the upbeat earnings and stronger guidance, Levi Strauss shares dropped more than 5% in after-hours trading. CEO Michelle Gass expressed confidence in the company’s resilient core consumer base, noting that two-thirds of recent sales growth resulted from unit increases rather than price hikes alone. Gass highlighted strength across key product segments, including the core Levi’s brand, signature lines, and the premium Blue Tab collection.

Levi Strauss also announced an increase in its dividend, reflecting optimism about sustained demand and profitability. The company’s performance demonstrates solid momentum amid challenging economic conditions, including rising gas prices. Investors will be watching to see how Levi continues to capture growth as it balances pricing strategies with expanding unit sales across its various offerings.