Q1 2026 Levi Strauss & Co Earnings Call Transcript
Key Points
- Levi Strauss & Co (LEVI) exceeded expectations in Q1 2026 with 9% organic net revenue growth and 14% on a reported basis.
- The company saw double-digit top-line growth in Europe and Asia, and 7% growth in the Americas.
- Direct-to-consumer (DTC) channel grew by 10%, with comparable sales up 7%, reflecting strong demand.
- Women's segment accelerated with 13% growth, and tops grew by 13%, contributing significantly to overall growth.
- Levi Strauss & Co (LEVI) raised its full-year guidance due to strong early performance and positive trends.
- The company faces an uncertain macroeconomic environment, particularly in Europe and North America.
- SG&A expenses grew by 16%, driven by higher advertising and promotion (A&P) costs and foreign exchange impacts.
- Gross margin contracted by 20 basis points year over year, primarily due to tariffs.
- The transition of distribution centers in the US is ongoing, with associated costs expected to taper off later in the year.
- Despite strong performance, the company maintains a prudent outlook due to potential macroeconomic challenges.
Good day, ladies and gentlemen, and welcome to the Levi Strauss & Co's first-quarter fiscal 2026 earnings conference call for the period ending March 1, 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 & Co.
Thank you for joining us on the call today to discuss the results for our first quarter of fiscal 2026. Joining me on today's call are Michelle Gass, 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 risks
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