Q2 2026 Levi Strauss & Co Earnings Call Transcript
Key Points
- Levi Strauss & Co (LEVI) reported a strong quarter with organic net revenues up 6%, exceeding expectations.
- The company's direct-to-consumer business grew by 8%, marking the 17th consecutive quarter of comparable sales growth.
- International markets showed strong momentum, with Asia leading with a 12% increase in revenues.
- Levi Strauss & Co (LEVI) raised its full-year sales and EPS guidance based on strong performance.
- The company's e-commerce channel saw a 17% increase, driven by increased traffic, better conversion, and higher average unit retail (AUR).
- The transition of the US distribution center to Maersk has taken longer than planned, impacting operational efficiency.
- Europe's revenue declined by 1% due to last year's distribution center transition, although underlying trends remain healthy.
- The tariff environment remains uncertain, with potential impacts on costs and pricing strategies.
- The company's inventory levels are expected to be slightly above last year, which could impact future profitability.
- Despite strong revenue growth, the operating margin in the Americas declined by 40 basis points due to unfavorable tariffs.
Good day, ladies and gentlemen, and welcome to the Levi Strauss & Company's Second Quarter Fiscal 2026 Earnings Conference Call for the period ending May 31, 2026. (Operator Instructions) This conference call is being recorded and may not be reproduced in whole or in part without written permission from the company.
This conference call is being broadcast over the Internet, and a replay of the webcast will be accessible for one quarter on the company's website, levistrauss.com. I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Company.
Thank you for joining us on the call today to discuss the results for our second quarter of fiscal 2026. Joining me on today's call are Michelle Goss, our President and CEO, and Harmit Singh, our Chief Financial and Growth Officer. We'd like to remind you that we will be making forward-looking statements based on current expectations, and those statements are subject to certain
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