LEVI STRAUSS & CO
For the period ended Aug 30, 2026. Filed Oct 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 30, 2026 · Filed Oct 7, 2026
LEVI$22.87-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-05-31; filed 2026-07-08.
0000094845-26-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-08-30; filed 2026-10-07.
0000094845-26-000047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 216 previous paragraphs and 219 current paragraphs.
155 unchanged; 57 reworded; 7 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 27 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Our Third Quarter 2026 Results
Current report
For the three-month period ended August 30, 2026, DTC revenues increased slightly due to store expansion and growth in e-commerce which were largely offset by slower traffic in our company-operated stores. Wholesale revenues increased due to price increases partially offset by a slight decrease in volume. For the nine-month period ended August 30, 2026, DTC revenues increased from store expansion and performance and growth in e-commerce due to higher demand. We benefited from 42 more company-operated stores in operation in Americas as of August 30, 2026 as compared to August 31, 2025. Wholesale revenues increased primarily from higher volumes and price increases.
Current report
For the three-month period ended August 30, 2026, DTC revenues decreased primarily due to lower store performance driven by softer traffic, and wholesale revenues increased due to higher volumes. For the nine-month period ended August 30,
Current report
2026, DTC revenues increased primarily due to higher e-commerce revenues and higher store performance, and wholesale revenues increased primarily due to higher volumes compared to the prior year period.
Current report
Currency translation had an unfavorable impact on gross profit of approximately $2 million and a favorable impact of approximately $64 million for the three-month and nine-month periods ended August 30, 2026, respectively. For the three-month period ended August 30, 2026, the increase in gross margin includes the IEEPA tariff refund benefit of $78.6 million, which drove 490 basis points of gross margin expansion, as well as the favorable impact of lower product costs. This was partially offset by approximately 70 basis points of unfavorable currency exchange fluctuations, including transaction impacts.
Current report
For the nine-month period ended August 30, 2026, the increase in gross margin includes the IEEPA tariff refund benefit of $80.7 million, which drove 170 basis points of gross margin expansion, as well as the favorable impacts of pricing actions and lower product costs. This was partially offset by the unfavorable impact of tariffs and approximately 20 basis points of unfavorable currency exchange fluctuations, including transaction impacts.
Current report
During the third quarters of both 2026 and 2025, as part of the Company’s annual review of the Beyond Yoga® reporting unit, the Company elected to perform a single step quantitative impairment test on the goodwill and indefinite lived trademark intangible assigned to the Beyond Yoga® reporting unit. The Company engaged third-party valuation specialists and used industry accepted valuation models and criteria that were reviewed and approved by various levels of management. Although the fair values of the Beyond Yoga® reporting unit and the indefinite lived trademark intangible exceeded their carrying values, the fair values of the Beyond Yoga® reporting unit were less than 10% over their carrying values in both 2026 and 2025 and the fair value of the indefinite lived trademark intangible was less than 10% over its carrying value in 2025. Determination of fair values is judgmental in nature and often involves the use of significant estimates and assumptions, which may include revenue growth rates, profit margins, operating expenses, capital expenditures, terminal value, a royalty rate and a discount rate. As our long-term strategies change, planned business performance expectations are not met over time, or specific valuation factors outside of our control, such as discount rates, change significantly, then the estimated fair values of the Beyond Yoga® reporting unit or the Beyond Yoga® indefinite-lived trademark intangible asset, or both might decline and lead to impairment charges in the future. Several factors could impact the Beyond Yoga® brand's ability to achieve expected future cash flows, including the success of retail store and international expansion, store and e-commerce productivity, the impact of promotional activity, continued economic volatility and potential operational challenges related to macroeconomic factors and other strategic initiatives to drive increased profitability.
Removed paragraphs (4)
Previous report
Our Second Quarter 2026 Results
Previous report
The increase in DTC revenues was attributable to growth across all markets, driven by store performance and expansion as well as higher e-commerce revenues driven by higher units per transaction. We benefited from 37 more company-operated stores in operation in Americas as of May 31, 2026 as compared to June 1, 2025. Wholesale revenues increased primarily due to an increase in volumes, with higher sales of Levi’s® women’s products. DTC and wholesale revenues also benefited from price increases.
Previous report
Wholesale revenues decreased on an organic basis for the three-month period ended May 31, 2026 primarily due to lower volumes and increased for the six-month period ended May 31, 2026 primarily due to higher volumes compared to the prior year periods. Volumes decreased during the three-month period ended May 31, 2026 primarily due to higher volume in the prior year period in order to normalize shipping after the transition to the distribution center in Dorsten, Germany. The increase in DTC revenues was primarily due to e-commerce revenues and an increase in revenues from outlet stores.
Previous report
Currency translation had a favorable impact on gross profit of approximately $19 million and approximately $66 million for the three-month and six-month periods ended May 31, 2026, respectively. For the three-month and six-month periods ended May 31, 2026, the change in gross margin reflects the favorable impacts of pricing actions and lower product costs and the unfavorable impact of tariffs. Additionally, gross margin decreased approximately 30 basis points and increased approximately 10 basis points as a result of currency exchange, including transaction impacts, for the three-month and six-month periods ended May 31, 2026, respectively.
Reworded paragraphs (57)
Previous wording
We recognize wholesale revenue from sales of our products through third-party retailers such as department stores, specialty retailers, third-party e-commerce sites and franchise locations dedicated to our brands. We also sell our products directly to consumers (“DTC”) through a variety of formats, including our own company-operated mainline and outlet stores, company-operated e-commerce sites and select shop-in-shops that we operate within department stores and other third-party retail locations. As of May 31, 2026, our products were sold in approximately 50,000 retail locations in approximately 120 countries, including approximately 3,300 brand-dedicated stores and shop-in-shops. As of May 31, 2026, we had 1,242 company-operated stores located in 38 countries and approximately 520 company-operated shop-in-shops. The remainder of our brand-dedicated stores and shop-in-shops were operated by franchisees and other partners.
Current wording
We recognize wholesale revenue from sales of our products through third-party retailers such as department stores, specialty retailers, third-party e-commerce sites and franchise locations dedicated to our brands. We also sell our products directly to consumers (“DTC”) through a variety of formats, including our own company-operated mainline and outlet stores, company-operated e-commerce sites and select shop-in-shops that we operate within department stores and other third-party retail locations. As of August 30, 2026, our products were sold in approximately 50,000 retail locations in approximately 120 countries, including approximately 3,300 brand-dedicated stores and shop-in-shops. As of August 30, 2026, we had 1,261 company-operated stores located in 38 countries and approximately 525 company-operated shop-in-shops. The remainder of our brand-dedicated stores and shop-in-shops were operated by franchisees and other partners.
Previous wording
Across all of our brands, pants – including jeans, casual pants, dress pants, shorts, skirts and activewear – represented 67% and 68% of our total units sold in the first six months of 2026 and 2025, respectively. Tops – including shirts, sweaters, jackets, dresses and jumpsuits – represented 29% of our total units sold in the first six months of both 2026 and 2025. The remainder of our products are accessories. Men’s products generated 58% and 60% of our net revenues in the first six months of 2026 and 2025, respectively. Women’s products generated 41% and 39% of our net revenues in the first six months of 2026 and 2025, respectively. The remainder of our products are non-gendered. Products other than denim bottoms – which include tops, accessories and pants excluding jeans – represented 38% of our net revenues in the first six months of both 2026 and 2025.
Current wording
Across all of our brands, pants – including jeans, casual pants, dress pants, shorts, skirts and activewear – represented 66% and 67% of our total units sold in the first nine months of 2026 and 2025, respectively. Tops – including shirts, sweaters, jackets, dresses and jumpsuits – represented 30% and 29% of our total units sold in the first nine months of 2026 and 2025, respectively. The remainder of our products are accessories. Men’s products generated 58% and 60% of our net revenues in the first nine months of 2026 and 2025, respectively. Women’s products generated 40% and 39% of our net revenues in the first nine months of 2026 and 2025, respectively. The remainder of our products are non-gendered. Products other than denim bottoms – which include tops, accessories and pants excluding jeans – represented 38% of our net revenues in the first nine months of both 2026 and 2025.
Previous wording
Our Europe and Asia businesses, collectively, contributed 47% and 46% of our net revenues in the first six months of 2026 and 2025, respectively. Net revenues from our international business, which includes our Europe and Asia segments, as well as Canada and Latin America from our Americas segment, represented 60% and 57% of our net revenues in the first six months of 2026 and 2025, respectively. Sales of Levi’s® brand products represented approximately 94% of our net revenues in the first six months of both 2026 and 2025.
Current wording
Our Europe and Asia businesses, collectively, contributed 46% of our net revenues in the first nine months of both 2026 and 2025. Net revenues from our international business, which includes our Europe and Asia segments, as well as Canada and Latin America from our Americas segment, represented 60% and 58% of our net revenues in the first nine months of 2026 and 2025, respectively. Sales of Levi’s® brand products represented approximately 94% of our net revenues in the first nine months of both 2026 and 2025.
Previous wording
Our wholesale channel generated 48% and 49% of our net revenues in the first six months of 2026 and 2025, respectively. Sales to franchise partners, included as a component of our wholesale channel, generated 6% of our net revenues in the first six months of both 2026 and 2025. Our DTC channel generated 52% and 51% of our net revenues in the first six months of 2026 and 2025, respectively, with our company operated e-commerce business representing 24% and 23% of DTC channel net revenues in the first six months of 2026 and 2025, respectively, and 12% of total net revenues in the first six months of both 2026 and 2025.
Current wording
Our wholesale channel generated 51% of our net revenues in the first nine months of both 2026 and 2025. Sales to franchise partners, included as a component of our wholesale channel, generated 6% and 7% of our net revenues in the first nine months of 2026 and 2025, respectively. Our DTC channel generated 49% of our net revenues in the first nine months of both 2026 and 2025, with our company operated e-commerce business representing 23% and 22% of DTC channel net revenues in the first nine months of 2026 and 2025, respectively, and 11% of total net revenues in the first nine months of both 2026 and 2025.
Previous wording
•Reciprocal tariffs previously imposed on products imported into the U.S. from most jurisdictions, along with retaliatory actions by other countries, have created an uncertain environment for global trade. On February 20, 2026 a U.S. Supreme Court ruling invalidated the tariffs imposed by the U.S. government under the International Emergency Economic Powers Act (“IEEPA”) on products imported into the U.S., which introduced the potential for such previously collected tariffs to be refunded by the U.S. government. Through the first quarter of 2026, the Company paid approximately $80 million of these tariffs. Following the U.S. Supreme Court ruling, the U.S. government imposed new tariffs under a separate authority prospectively. Uncertainty continues to exist regarding current and future tariffs. Many of our products are produced in countries, such as Bangladesh, Cambodia, Pakistan, and Vietnam, that were subject to the recently invalidated U.S. IEEPA tariffs, and are subject to the current prospective tariffs. There may be additional tariff actions or increases to existing tariffs in the future. As a result of these tariff actions, retaliatory actions taken by other countries in response, and ongoing uncertainty regarding U.S. trade policy, the cost of our inventory in the U.S. has generally increased and may increase further in the future. These increased costs could lead to a significant increase in cost of sales and a significant reduction in gross margin and income from operations. We are monitoring the changing tariffs and trade restrictions, assessing the impact on our business and taking steps to mitigate their impact. However, the duration, magnitude and scope of any additional tariffs, trade restrictions, and retaliatory or other measures are difficult to predict, including related unfavorable impacts to consumer demand, along with the extent (if any) to which we will be able to offset the impacts of such actions through our mitigation efforts. These tariff actions, retaliatory measures, or other trade restrictions could materially and adversely affect our business.
Current wording
•Reciprocal tariffs previously imposed on products imported into the U.S. from most jurisdictions, along with retaliatory actions by other countries, have created an uncertain environment for global trade. On February 20, 2026 a U.S. Supreme Court ruling invalidated the tariffs imposed by the U.S. government under the International Emergency Economic Powers Act (“IEEPA”) on products imported into the U.S. During the third quarter of 2026 the Company recorded $78.6 million of refunds of previously paid IEEPA tariffs as a reduction of cost of goods sold, $57.1 million of which were received by August 30, 2026. The Company continues to assess loss recovery on tariff refunds under future phases. During the third quarter of 2026, the Company also recorded $4.7 million of interest income associated with the IEEPA refunds which was included in “Other income (expense), net” in the consolidated statements of income. Following the U.S. Supreme Court ruling, the U.S. government announced on July 23, 2026, new tariffs under Section 301 of the Trade Act of 1974 on most imports from certain countries, effective upon the expiration of the previous temporary Section 122 tariffs. Uncertainty continues to exist regarding current and future tariffs. Many of our products are produced in countries, such as Bangladesh, Cambodia, Pakistan, and Vietnam, that were subject to the invalidated U.S. IEEPA tariffs, and are subject to the new prospective tariffs. There may be additional tariff actions or increases to existing tariffs in the future. As a result of these tariff actions, retaliatory actions taken by other countries in response, and ongoing uncertainty regarding U.S. trade policy, the cost of our inventory in the U.S. has generally increased and may increase further in the future. These increased costs could lead to a significant increase in cost of sales and a significant reduction in gross margin and income from operations. We are monitoring the changing tariffs and trade restrictions, assessing the impact on our business and taking steps to mitigate their impact. However, the duration, magnitude and scope of any additional tariffs, trade restrictions, and retaliatory or other measures are difficult to predict, including related unfavorable impacts to consumer demand, along with the extent (if any) to which we will be able to offset the impacts of such actions through our mitigation efforts. These tariff actions, retaliatory measures, or other trade restrictions could materially and adversely affect our business.
Previous wording
•As part of our effort to optimize our logistics network, we are in the process of transitioning and stabilizing the operation of certain of our global distribution and fulfillment centers to third-party logistics providers. This transition from owner-operated facilities to third-party logistics providers has and may continue to cause interruptions to these centers as we transition or restructure systems, technology and employees. We have and may continue to experience shipping delays, order cancellations and increased costs as a result of this transition and stabilization. We are subject to concentration risks and any disruptions, delays or other events impacting the business of the third-party logistics providers may have a significant impact on our business, including our ability to timely fulfill orders. If we continue to encounter problems with our distribution system, our ability to meet customer and consumer expectations, manage inventory, complete sales and achieve operating efficiencies may be adversely affected.
Current wording
•As part of our effort to optimize our logistics network, we are in the process of transitioning and stabilizing the operation of certain of our global distribution and fulfillment centers to third-party logistics providers. This transition from owner-operated facilities to third-party logistics providers has and may continue to cause disruptions and service level impacts to these centers as we transition or restructure systems, technology and employees. We have and may continue to experience shipping delays, order cancellations and increased costs as a result of this transition and stabilization which has and may continue to impact our relationships with wholesale customers. Additionally, during the quarter there was a fire at one of our distribution centers, which had an impact on our operations. The damage to our inventory is insured and the impact on our financial results was not significant. We are subject to concentration risks and any disruptions, delays or other events impacting the business of the third-party logistics providers may have a significant impact on our business, including our ability to timely fulfill orders. If we continue to encounter problems with our distribution system, our ability to meet customer and consumer expectations, manage inventory, complete sales and achieve operating efficiencies may be adversely affected.
Previous wording
•Macroeconomic pressures in the U.S. and the global economy such as changes in tariff regimes, inflation, energy prices and recession fears are creating a complex and challenging retail environment for us and our customers as consumers may reduce discretionary spending. These trends historically have impacted and may impact our future financial results, affecting revenue, margins and net income.
Current wording
•Macroeconomic pressures in the U.S. and the global economy such as changes in tariff regimes, inflation, interest rates, energy prices and recession fears are creating a complex and challenging retail environment for us and our customers. These pressures are weighing on consumer sentiment and may cause consumers to reduce or reallocate discretionary spending. These trends historically have impacted and may impact our future financial results, affecting demand for our products, revenue, margins and net income.
Previous wording
•Tax legislation continues to evolve globally with new laws and regulations that create uncertainty, including an agreement reached by the Organization for Economic Cooperation and Development among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as Pillar Two, and the One Big Beautiful Bill Act (“OBBBA”) enacted by U.S. Congress. We do not expect Pillar Two or the OBBBA to have a material impact to our financial results and we will continue to monitor their impacts as the legislative landscape evolves.
Current wording
•Tax legislation continues to evolve globally with new laws and regulations that create uncertainty, including an agreement reached by the Organization for Economic Cooperation and Development among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as Pillar Two, and the One Big Beautiful Bill Act (“OBBBA”) enacted by U.S. Congress. Pillar Two could adversely impact our effective tax rates, tax liability and cash taxes in 2026 and future years. We do not expect the OBBBA to have a material impact to our financial results.
Previous wording
•There has been increased focus from our stakeholders, including consumers, employees, investors, regulatory organizations and legislatures on corporate environmental, social, and governance (“ESG”) practices, including corporate practices related to the causes and impacts of climate change and corporate statements, practices or products related to a variety of social issues. We expect that stakeholder expectations and actions with respect to ESG practices and social issues and regulatory requirements will continue to evolve rapidly, which may impact our reputation and financial results.
Current wording
•There has been increased focus from our stakeholders, including consumers, employees, investors, regulatory organizations and legislatures on corporate environmental, social, and governance practices, including corporate practices related to the causes and impacts of climate change and corporate statements, practices or products related to a variety of social issues. We expect that stakeholder expectations and actions with respect to these practices and issues and regulatory requirements will continue to evolve rapidly, which may impact our reputation and financial results.
Previous wording
We typically achieve our largest quarterly revenues in the fourth quarter. In fiscal year 2025, our net revenues in the first, second, third and fourth quarters represented 24%, 23%, 25%, 28%, respectively, of our total net revenues for the year.
Current wording
We typically achieve our largest quarterly revenues in the fourth quarter. In fiscal year 2025, our net revenues in the first, second, third and fourth quarters represented 24%, 23%, 25%, and 28%, respectively, of our total net revenues for the year.
Previous wording
•Net revenues. Consolidated net revenues increased 8.0% on a reported basis and 5.7% on an organic net revenues basis compared to the second quarter of 2025 reflecting net revenue growth driven by Americas and Asia and in both DTC and wholesale channels.
Current wording
•Net revenues. Consolidated net revenues increased 4.3% on a reported basis and 4.5% on an organic net revenues basis compared to the third quarter of 2025 reflecting net revenue growth driven by our wholesale channel and our DTC channel in Asia.
Previous wording
•Net income from continuing operations. Compared to the second quarter of 2025, consolidated net income from continuing operations increased to $94.8 million from $79.6 million. The increase was primarily driven by higher gross profit, partially offset by higher selling, general and administrative expenses (“SG&A”). Net income margin from continuing operations was 6.1%, up from 5.5% in the second quarter of 2025. Operating margin was 7.8%, up from 7.5% in the second quarter of 2025.
Current wording
•Net income from continuing operations. Compared to the third quarter of 2025, consolidated net income from continuing operations increased to $168.6 million from $122.0 million. The increase was primarily driven by higher gross profit, which included a benefit of $78.6 million related to IEEPA tariff refunds. This was partially offset by higher selling, general and administrative expenses (“SG&A”). Net income margin from continuing operations was 10.5%, up from 7.9% in the third quarter of 2025. Operating margin was 13.8%, up from 10.8% in the third quarter of 2025. Net tariff refunds contributed 490 basis points of operating margin expansion.
Previous wording
•Adjusted EBIT. Compared to the second quarter of 2025, Adjusted EBIT increased 18.4% to $141.2 million from $119.3 million primarily driven by higher gross profit, partially offset by higher SG&A. Adjusted EBIT margin was 9.0%, 70 basis points higher than the second quarter of 2025 on a reported basis, and 50 basis points higher on a constant-currency basis.
Current wording
•Adjusted EBIT. Compared to the third quarter of 2025, Adjusted EBIT increased 36.4% to $248.7 million from $182.3 million primarily driven by higher gross profit, partially offset by higher SG&A. Adjusted EBIT margin was 15.5%, 370 basis points higher than the third quarter of 2025 on a reported basis, and 380 basis points higher on a constant-currency basis. Net tariff refunds contributed 490 basis points of Adjusted EBIT margin expansion.
Previous wording
•Adjusted net income. Compared to the second quarter of 2025, Adjusted net income increased to $109.8 million from $88.5 million due to higher Adjusted EBIT described above.
Current wording
•Adjusted net income. Compared to the third quarter of 2025, Adjusted net income increased to $188.9 million from $135.7 million due to higher Adjusted EBIT described above.
Previous wording
•Diluted earnings per share from continuing operations. Compared to the second quarter of 2025, diluted earnings per share from continuing operations increased to $0.24 from $0.20, mainly due to the higher Net income from continuing operations described above.
Current wording
•Diluted earnings per share from continuing operations. Compared to the third quarter of 2025, diluted earnings per share from continuing operations increased to $0.43 from $0.31, mainly due to the higher Net income from continuing operations described above.
Previous wording
•Adjusted diluted earnings per share. Compared to the second quarter of 2025, Adjusted diluted earnings per share increased to $0.28 from $0.22, mainly due to the higher Adjusted net income described above. Currency translation favorably affected Adjusted diluted earnings per share by $0.01.
Current wording
•Adjusted diluted earnings per share. Compared to the third quarter of 2025, Adjusted diluted earnings per share increased to $0.48 from $0.34, mainly due to the higher Adjusted net income described above. Currency translation unfavorably affected Adjusted diluted earnings per share by $0.01.
Previous wording
•Net revenues. Consolidated net revenues increased 11.2% on a reported basis and 7.5% on an organic net revenues basis compared to the first six months of 2025. Net revenues grew across all regions and in both our DTC and wholesale channels.
Current wording
•Net revenues. Consolidated net revenues increased 8.8% on a reported basis and 6.5% on an organic net revenues basis compared to the first nine months of 2025. Net revenues grew across all regions and in both our DTC and wholesale channels.
Previous wording
•Net income from continuing operations. Compared to the first six months of 2025, consolidated net income from continuing operations increased to $271.9 million from $219.8 million, primarily due to higher gross profit and a legal settlement gain, partially offset by higher SG&A and higher income taxes. Operating margin was 9.7% compared to 10.1% in the first six months of 2025.
Current wording
•Net income from continuing operations. Compared to the first nine months of 2025, consolidated net income from continuing operations increased to $440.5 million from $341.8 million, primarily due to higher gross profit, which included a benefit of $80.7 million related to IEEPA tariff refunds, and a legal settlement gain, partially offset by higher SG&A and higher income taxes. Operating margin was 11.1% compared to 10.3% in the first nine months of 2025. Net tariff refunds contributed 170 basis points of operating margin expansion.
Previous wording
•Adjusted EBIT. Compared to the first six months of 2025, Adjusted EBIT increased 11.0% to $359.0 million from $323.3 million, primarily due to higher gross profit, partially offset by higher SG&A. Adjusted EBIT margin was 10.9%, unchanged from the first six months of 2025 on a reported basis and 40 basis points lower on a constant-currency basis.
Current wording
•Adjusted EBIT. Compared to the first nine months of 2025, Adjusted EBIT increased 20.2% to $607.7 million from $505.6 million, primarily due to higher gross profit, partially offset by higher SG&A. Adjusted EBIT margin was 12.4%, up from 11.2% from the first nine months of 2025 on a reported basis and 100 basis points higher on a constant-currency basis. Net tariff refunds contributed 170 basis points of Adjusted EBIT margin expansion.
Previous wording
•Adjusted net income. Compared to the first six months of 2025, Adjusted net income increased 15.9% to $276.5 million from $238.5 million, primarily due to higher Adjusted EBIT described above, partially offset by higher income taxes in the current year.
Current wording
•Adjusted net income. Compared to the first nine months of 2025, Adjusted net income increased 24.4% to $465.4 million from $374.2 million, primarily due to higher Adjusted EBIT described above, partially offset by higher income taxes in the current year.
Previous wording
•Diluted earnings per share from continuing operations. Compared to the first six months of 2025, diluted earnings per share increased to $0.69 from $0.55, mainly due to higher net income from continuing operations described above.
Current wording
•Diluted earnings per share from continuing operations. Compared to the first nine months of 2025, diluted earnings per share increased to $1.12 from $0.86, mainly due to higher net income from continuing operations described above.
Previous wording
•Adjusted diluted earnings per share. Compared to the first six months of 2025, Adjusted diluted earnings per share increased to $0.70 from $0.60, due to higher Adjusted net income described above. Currency translation favorably affected Adjusted diluted earnings per share by $0.02.
Current wording
•Adjusted diluted earnings per share. Compared to the first nine months of 2025, Adjusted diluted earnings per share increased to $1.19 from $0.94, due to higher Adjusted net income described above. Currency translation favorably affected Adjusted diluted earnings per share by $0.01.
Previous wording
Total net revenues increased on both a reported and organic net revenues basis for the three-month and six-month periods ended May 31, 2026, as compared to the same periods in 2025. Currency translation had a favorable impact on total net revenues of approximately $32 million and approximately $102 million for the three-month and six-month periods ended May 31, 2026, respectively.
Current wording
Total net revenues increased on both a reported and organic net revenues basis for the three-month and nine-month periods ended August 30, 2026, as compared to the same periods in 2025. Currency translation had an unfavorable impact on total net revenues of approximately $3 million and a favorable impact of approximately $100 million for the three-month and nine-month periods ended August 30, 2026, respectively.
Previous wording
Americas. Currency translation had a favorable impact on net revenues of approximately $16 million and approximately $34 million for the three-month and six-month periods ended May 31, 2026, respectively. Net revenues in the Americas increased for the three-month and six-month periods ended May 31, 2026 on both a reported and organic net revenues basis compared to the prior-year period driven by growth in both DTC and wholesale channels.
Current wording
Americas. Currency translation had a favorable impact on net revenues of approximately $12 million and approximately $46 million for the three-month and nine-month periods ended August 30, 2026, respectively. Net revenues in the Americas increased for the three-month and nine-month periods ended August 30, 2026 on both a reported and organic net revenues basis compared to the prior-year periods.
Previous wording
Europe. Currency translation had a favorable impact on net revenues of approximately $20 million and approximately $72 million for the three-month and six-month periods ended May 31, 2026, respectively. For the three-month period ended May 31, 2026, net revenues in Europe increased on a reported basis and decreased on an organic basis compared to the prior-year period. Net revenues for the six-month period ended May 31, 2026 increased on both a reported and organic net revenues basis compared to the prior-year period.
Current wording
Europe. Currency translation had an unfavorable impact on net revenues of approximately $4 million and a favorable impact of approximately $67 million for the three-month and nine-month periods ended August 30, 2026, respectively. Net revenues in Europe increased on a reported basis and organic basis compared to the prior-year periods.
Previous wording
Asia. Currency translation had an unfavorable impact on net revenues of approximately $4 million and approximately $3 million for the three-month and six-month periods ended May 31, 2026, respectively. Net revenues in Asia increased for the three-month and six-month periods ended May 31, 2026 compared to the prior year period on both a reported and organic net revenues basis and in both our DTC and wholesale channels.
Current wording
Asia. Currency translation had an unfavorable impact on net revenues of approximately $11 million and approximately $14 million for the three-month and nine-month periods ended August 30, 2026, respectively. Net revenues in Asia increased for the three-month and nine-month periods ended August 30, 2026 compared to the relevant prior year period on both a reported and organic net revenues basis and in both our DTC and wholesale channels.
Previous wording
The increase in DTC revenues was primarily due to store performance and expansion in our company-operated stores, and higher e-commerce revenues. We benefited from 17 more company-operated stores in operation in Asia as of May 31, 2026 as compared to June 1, 2025. The increase in wholesale revenues was primarily due to an increase in units sold.
Current wording
For the three-month period ended August 30, 2026 the increase in DTC revenues was primarily due to store performance and expansion in our company-operated stores, and higher e-commerce revenues primarily due to higher demand. The increase in wholesale revenues was primarily due to price increases. For the nine-month period ended August 30, 2026, the increase in DTC revenues was primarily due to store performance and store expansion. We benefited from 16 more company-operated stores in operation in Asia as of August 30, 2026 as compared to August 31, 2025. The increase in wholesale revenues was primarily due to an increase in units sold.
Previous wording
Beyond Yoga®. Net revenues in Beyond Yoga® increased on a reported and organic net revenues basis for the three-month and six-month periods ended May 31, 2026 compared to the prior year periods, primarily due to growth in e-commerce net revenues reflecting higher demand. Currency translation did not have an impact on net revenues.
Current wording
Beyond Yoga®. Net revenues in Beyond Yoga® increased on a reported and organic net revenues basis for the three-month period ended August 30, 2026 due primarily to store expansion and for the nine-month period ended August 30, 2026 primarily due to growth in e-commerce net revenues, reflecting higher demand, and store expansion. Beyond Yoga benefited from six more company-operated stores in operation as of August 30, 2026 as compared to August 31, 2025. Currency translation did not have an impact on net revenues.
Previous wording
Wholesale. Currency translation had a favorable impact on net revenues of approximately $16 million and approximately $45 million for the three-month and six-month periods ended May 31, 2026, respectively. Net revenues in our wholesale channel increased for the three-month and six-month periods ended May 31, 2026 compared with the prior-year periods on a reported and organic net revenues basis primarily due to higher volumes, with higher sales of Levi’s®women’s products, and benefited from price increases. For the three-month period ended May 31, 2026, lower volumes in Europe were due primarily to normalization of shipping in the prior year period after the transition to the distribution center in Dorsten, Germany.
Current wording
Wholesale. Currency translation had an unfavorable impact on net revenues of approximately $2 million and a favorable impact of approximately $43 million for the three-month and nine-month periods ended August 30, 2026, respectively. Net revenues in our wholesale channel increased for the three-month period ended August 30, 2026 compared with the prior-year period on a reported and organic net revenues basis primarily due to price increases and higher volumes and increased for the nine-month period ended August 30, 2026 primarily due to higher volumes.
Previous wording
DTC (Direct to Consumer). Currency translation had a favorable impact on net revenues of approximately $16 million and approximately $57 million for the three-month and six-month periods ended May 31, 2026, respectively. Net revenues in our DTC channel increased on both a reported and organic net revenues basis for the three-month and six-month periods ended May 31, 2026. The increase was driven by store performance and expansion, and higher e-commerce revenues. DTC revenues also benefited from price increases. For the three-month and six-month periods ended May 31, 2026 net revenues from e-commerce on a reported basis grew 19% and 20%, respectively. As a percentage of net revenues on a reported basis for the three-month and six-month periods ended May 31, 2026 DTC comprised 51% and 52% of total net revenues, respectively.
Current wording
DTC (Direct to Consumer). Currency translation did not have a significant impact and had a favorable impact on net revenues of approximately $57 million for the three-month and nine-month periods ended August 30, 2026, respectively. Net revenues in our DTC channel increased on both a reported and organic net revenues basis for the three-month and nine-month periods ended August 30, 2026. For the three-month period ended August 30, 2026 DTC revenue increased primarily due to higher e-commerce revenues and store expansion, partially offset by lower store performance driven by softer traffic. For the nine-month period ended August 30, 2026 DTC revenue increased primarily due to higher e-commerce revenues, store expansion and store performance. For the three-month and nine-month periods ended August 30, 2026 net revenues from e-commerce on a reported basis grew 10% and 17%, respectively. As a percentage of net revenues on a reported basis for the three-month and nine-month periods ended August 30, 2026 DTC comprised 45% and 49% of total net revenues, respectively.
Previous wording
Levi’s®. Currency translation had a favorable impact on net revenues of approximately $31 million and approximately $102 million for the three-month and six-month periods ended May 31, 2026, respectively. Net revenues for the Levi’s® brand increased on both a reported and organic net revenues basis for the three-month and six-month periods ended May 31, 2026. The increase was a result of higher revenue in our DTC channel, primarily due to increases in store performance and expansion, and higher e-commerce revenues, and an increase in wholesale revenues due primarily to higher volumes, with higher sales of Levi’s® women’s products. Net revenues for the Levi’s® brand also benefited from price increases.
Current wording
Levi’s®. Currency translation had an unfavorable impact on net revenues of approximately $3 million and a favorable impact of approximately $99 million for the three-month and nine-month periods ended August 30, 2026, respectively. Net revenues for the Levi’s® brand increased on both a reported and organic net revenues basis for the three-month and nine-month periods ended August 30, 2026. For the three-month period ended August 30, 2026 Levi’s Brands revenues increased due to higher revenues in our wholesale channel, primarily due to price increases, and higher revenues in our DTC channel, primarily due to higher e-commerce revenues and store expansion. For the nine-month period ended August 30, 2026 Levi’s Brands revenues increased due to higher revenue in our DTC channel, primarily due to higher e-commerce revenues, store expansion, and store performance, and higher revenues in our wholesale channel primarily due to higher volumes and price increases.
Previous wording
Levi Strauss Signature™. Currency translation did not have a significant impact on net revenues for the three-month and six-month periods ended May 31, 2026. Net revenues for the Levi Strauss Signature™ brand increased on both a reported and organic net revenues basis for the three and six months ended May 31, 2026 due primarily to more units sold.
Current wording
Levi Strauss Signature™. Currency translation did not have a significant impact on net revenues for the three-month and nine-month periods ended August 30, 2026. Net revenues for the Levi Strauss Signature™ brand increased on both a reported and organic net revenues basis due primarily to price increases for the three-month period ended August 30, 2026 and due to price increases and more units sold for the nine-month period ended August 30, 2026.
Previous wording
Currency translation had an unfavorable impact on SG&A of approximately $14 million and approximately $43 million for the three-month and six-month periods ended May 31, 2026, respectively.
Current wording
Currency translation did not have a significant impact and had an unfavorable impact on SG&A of approximately $43 million for the three-month and nine-month periods ended August 30, 2026, respectively.
Previous wording
Selling. Currency translation had an unfavorable impact on selling expenses of approximately $7 million and approximately $25 million for the three-month and six-month periods ended May 31, 2026, respectively. Excluding the effects of currency, selling expenses increased for the three-month and six-month periods ended May 31, 2026 primarily due to higher DTC store expenses in the current year as compared to the prior-year periods, including from store expansion.
Current wording
Selling. Currency translation did not have a significant impact and had an unfavorable impact on selling expenses of approximately $25 million for the three-month and nine-month periods ended August 30, 2026, respectively. Excluding the effects of currency, selling expenses increased for the three-month and nine-month periods ended August 30, 2026 primarily due to higher DTC store expenses in the current year as compared to the prior-year periods, including from store expansion. For the three-month period ended August 30, 2026 selling expenses as a percent of revenue increased compared to the prior-year period in part due to lower revenues in our company-operated stores due to slower traffic.
Previous wording
Advertising and promotion. Currency translation had an unfavorable impact on advertising and promotion expenses of approximately $2 million and approximately $5 million for the three-month and six-month periods ended May 31, 2026, respectively. Excluding the effects of currency, the decrease in advertising and promotion expenses for the three-month period ended May 31, 2026 was primarily due to normalization of current year expense during the quarter. Advertising and promotion expenses were higher for the six-month period ended May 31, 2026 primarily due to increased spending related to the launch of the Behind Every Original campaign, including a commercial during Super Bowl LX which was held at Levi’s® Stadium.
Current wording
Advertising and promotion. Currency translation did not have a significant impact and had an unfavorable impact on advertising and promotion expenses of approximately $5 million for the three-month and nine-month periods ended August 30, 2026, respectively. Excluding the effects of currency, the increases in advertising and promotion expenses for the three-month and nine-month periods ended August 30, 2026 were primarily due to increased media spending. Advertising and promotion expenses for the nine-month period ended August 30, 2026 included increased spending related to the launch of the Behind Every Original campaign, including a commercial during Super Bowl LX which was held at Levi’s® Stadium.
Previous wording
Distribution. Currency translation had an unfavorable impact on distribution expenses of approximately $2 million and approximately $7 million for the three-month and six-month periods ended May 31, 2026, respectively. Excluding the effects of currency, the increase in distribution expenses was primarily due to increased volume, partially offset by the impact of owned and operated distribution center closures in the prior year.
Current wording
Distribution. Currency translation did not have a significant impact and had an unfavorable impact on distribution expenses of approximately $7 million for the three-month and nine-month periods ended August 30, 2026, respectively. Excluding the effects of currency, the increase in distribution expenses was primarily due to increased volume and higher rates, partially offset during the nine-month period ended August 30, 2026 by the impact of owned and operated distribution center closures in the prior year.
Previous wording
Other. Other expenses include functional administrative and organization costs, information resources, and marketing organization costs. Currency translation did not have a significant impact and had an unfavorable impact on other expenses of approximately $6 million for the three-month and six-month periods ended May 31, 2026, respectively. The increase in other SG&A for the three-month and six-month periods ended May 31, 2026 included higher technology costs. The increase in other SG&A for the six-month period ended May 31, 2026 also includes the impact of attorney fees of $10.0 million related to a gain on legal settlement, partially offset by a decrease in incentive compensation.
Current wording
Other. Other expenses include functional administrative and organization costs, information resources, and marketing organization costs. Currency translation did not have a significant impact and had an unfavorable impact on other expenses of approximately $6 million for the three-month and nine-month periods ended August 30, 2026, respectively. The increase in other SG&A for the three-month period ended August 30, 2026 included higher restructuring-related consulting fees and higher technology costs. The increase in other SG&A for the nine-month period ended August 30, 2026 included the impact of higher technology costs, higher restructuring-related consulting fees and attorney fees of $10.0 million related to a gain on legal settlement, partially offset by a decrease in incentive compensation.
Previous wording
During the three-month and six-month periods ended May 31, 2026 we recognized restructuring charges of $13.5 million and $21.4 million, respectively, consisting primarily of severance and other post-employment benefit charges, contract terminations, and asset impairments related to certain discontinued technology projects. During the three-month and six-month periods ended June 1, 2025 we recognized restructuring charges of $6.8 million and $13.5 million, respectively, in connection with Project Fuel, a multi-year global productivity initiative that was substantially complete as of November 30, 2025, consisting primarily of severance and other post-employment benefit charges and asset impairments and contract terminations in connection with closures of distribution centers which were largely offset by a gain on sale of a previously closed distribution center.
Current wording
During the three-month and nine-month periods ended August 30, 2026 we recognized restructuring charges of $7.6 million and $29.0 million, respectively, consisting primarily of severance and other post-employment benefit charges, asset impairments related to certain discontinued technology projects and contract terminations. During the three-month and nine-month periods ended August 31, 2025 we recognized restructuring charges of $8.6 million and $22.1 million, respectively, in connection with Project Fuel, a multi-year global productivity initiative that was substantially complete as of November 30, 2025, consisting primarily of severance and other post-employment benefit charges, asset impairments and contract terminations in connection with closures of distribution centers which were largely offset by a gain on sale of a previously closed distribution center.
Previous wording
Currency translation had a favorable impact on total operating income of approximately $5 million and approximately $23 million for the three-month and six-month periods ended May 31, 2026, respectively.
Current wording
Currency translation did not have a significant impact and had a favorable impact on total operating income of approximately $21 million for the three-month and nine-month periods ended August 30, 2026, respectively.
Previous wording
•Americas. Currency translation had a favorable impact on operating income in the segment of approximately $2 million and approximately $5 million for the three-month and six-month periods ended May 31, 2026, respectively. Excluding the effects of currency, the increase in operating income for the three-month period ended May 31, 2026 was due primarily to higher revenues, which were partially offset by higher SG&A and lower gross margins. For the six-month period ended May 31, 2026 operating income increased slightly as higher revenues were substantially offset by higher SG&A, which increased as a percent of revenue, and lower gross margins.
Current wording
•Americas. Currency translation had a favorable impact on operating income in the segment of approximately $3 million and approximately $7 million for the three-month and nine-month periods ended August 30, 2026, respectively. Excluding the effects of currency, the increase in operating income for the three-month period ended August 30, 2026 was due primarily to higher gross margins, which included IEEPA tariff refunds, and higher revenues, which were partially offset by higher SG&A, which increased as a percent of revenues. The increase in operating income for the nine-month period ended August 30, 2026 was due primarily to higher revenues and higher gross margins, which included IEEPA tariff refunds, partially offset by higher SG&A, which increased as a percent of revenues.
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