Levi Strauss & Co posts solid sales despite slowdown in domestic, DTC businesses

Levi's denim — Analyst said Levi’s third-quarter results remain solid. (Source: Levi's)

By Sean Cao October 8, 2026

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Levi Strauss & Co has reported another quarter of sales growth despite some weakness in its US and direct-to-consumer (DTC) businesses.

The company’s net revenues rose 4 per cent to $1.6 billion in the third quarter ended August 30, slowing from the 8 per cent growth in the second quarter.

In the Americas, sales increased 4 per cent, including a 1 per cent decrease in the US. Europe sales grew 4 per cent and Asia sales improved 5 per cent.

DTC revenues increased 2 per cent, compared with the 11 per cent jump in the second quarter. In the US, DTC sales fell 1 per cent.

Although some of the recent heat has come out of the growth figures, GlobalData MD Neil Saunders said Levi’s third-quarter results remain solid.

“The slightly slower growth doesn’t take away from the fact that Levi’s has a very sound underlying strategy. While it is an iconic label with a very rich history, it also feels very youthful and fast-moving. Much of this comes from the energy inside the business, which has changed the way the brand presents itself to consumers,” he said.

According to the analyst, the assortment has strengthened over time, and current ranges are more fashion-forward and interesting than those of last year.

“We expect this will become more visible in the final quarter when some of the more expressive winter lines hit the shop floor. This will fit particularly well with the consumer tilt towards more structured styles and away from athleisure,” he said.

On the bottom line, net income from continuing operations rose from $122 million a year ago to $169 million.

“The tariff refund has been helpful to profits this quarter, but the fact that Levi’s intends to reinvest some of the windfall is notable, as it clearly sees some further headroom to boost sales.

“However, with that commitment, it will be important for Levi’s to deliver a slightly punchier set of numbers to round off the year,” Saunders said.

For the full year, the company expects net revenues to grow approximately 7 per cent on a reported basis and 6 per cent on an organic basis.