A maker of denim and apparel, Levi Strauss & Co. is best known for the Levi's brand — including the iconic 501 jeans — sold through its own stores, online, and at retailers in around 120 countries, alongside athleisure label Beyond Yoga. The company traces to 1853, when Bavarian immigrant Levi Strauss opened a dry goods business in San Francisco during the Gold Rush; in 1873 he teamed with tailor Jacob Davis to patent the riveted work pants that became blue jeans, with the famous copper rivets inspired by horse blankets.
Q2 FY2026 revenue rose 8.0% to $1.56B while operating income rose 13.1% to $122.2M
The Dockers sale is now behind the company and the core business grew across regions. rose 8.0% to $1,562.0M and widened to 62.7% as grew 10.8%, while from continuing operations rose to $94.8M from $79.6M a year earlier. Levi Strauss enters the second half as a leaner brand with $1.8B in liquidity and a $200M completed.
Key takeaways
Net revenues rose 8.0% reported (5.7% organic) to $1,562.0M, with Americas up 9.0% and Asia up 10.1%, while Europe grew 4.2% reported but declined 0.8% organic as the Dockers business was no longer in the base.
net revenues grew 10.8% reported (8.4% organic), driven by store expansion and e-commerce growth of 19%, and wholesale grew 5.3% on higher volumes and price increases.
expanded 10 to 62.7%, benefiting from pricing actions and lower product costs partially offset by tariff impacts, with currency translation adding $19M to .
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net revenues rose 8% to $1.56B, driven by DTC and Americas/Asia growth, with operating margin up 30bps to 7.8%.
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Consolidated net revenues increased 8.0% reported (5.7% organic) to $1.56B, with growth in Americas (+9.0%) and Asia (+10.1%), while Europe grew 4.2% reported but declined 0.8% organic.
SG&A increased 6.6% to $843.4M from DTC store expansion and volume, while rose to $13.5M from $6.8M a year earlier; increased 18.4% to $141.2M.
from continuing operations rose to $94.8M from $79.6M, and for the first six months was $482.3M, up from $238.0M a year earlier.
The company executed a $200M and declared a $0.16 per share , with total liquidity of $1.8B.
What changed
The Dockers sale, flagged to close in stages through January 2026, was completed in July 2025 per the FY2025 10-K; Q2 FY2026 results show no Dockers separation charges and the business is absent from the base.
Project Fuel savings realization was flagged to watch; were $13.5M this quarter versus $6.8M a year earlier, so charges have not yet fallen toward zero as earlier filings anticipated.
Tariff impact on , flagged after Q1 FY2026's 20bps decline to 61.9%, persisted but was contained — gross margin still expanded 10bps to 62.7% on pricing and lower costs.
Share repurchases under the $750M program: after a $200M accelerated in Q1 FY2026 and $120M in Q3 FY2025, this filing shows another $200M accelerated repurchase executed, against no disclosure in FY2024.
Q2 FY2026 of $1,562.0M was down 10.4% from Q1 FY2026's $1,742.5M, a sequential drop after the 14.1% Q1 increase, with down 38.5% quarter over quarter to $122.2M.
What to watch
Q3 FY2026 and as tariff costs and the $13.5M Project Fuel persist into the second half.
Any further staged Dockers sale proceeds or separation charges reported through the January 2026 timeline.
Next disclosure of additional share repurchases under the $750M program after the $200M this quarter.
Q3 FY2026 against the first-half $482.3M to confirm spending stays in check.
DTC channel net revenues grew 10.8% reported (8.4% organic), driven by store expansion and e-commerce growth of 19%, while wholesale grew 5.3% reported (3.1% organic) on higher volumes and price increases.
expanded 10bps to 62.7%, benefiting from pricing actions and lower product costs, partially offset by tariff impacts; currency translation favorably impacted by $19M.
SG&A increased 6.6% to $843.4M, with higher selling and distribution expenses from DTC store expansion and volume, partially offset by lower advertising spend; rose to $13.5M from $6.8M.
from continuing operations rose to $94.8M from $79.6M, and increased 18.4% to $141.2M; was $482.3M for the first six months, up from $238.0M.
Liquidity remained strong with $1.8B in total liquidity; the company executed a $200M and declared a $0.16 per share .
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in our primary market risk exposures or how those exposures are managed from the information disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2025.
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There have been no material changes in our primary market risk exposures or how those exposures are managed from the information disclosed in our Annual Report on Form 10-K for the fiscal year ended November 30, 2025.
For information regarding factors that could affect our results of operations, financial condition and liquidity, see the risk factors discussed in Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended November 30, 2025. There have been no material…
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For information regarding factors that could affect our results of operations, financial condition and liquidity, see the risk factors discussed in Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended November 30, 2025. There have been no material changes to our previously reported Risk Factors.