Levi Strauss & Co. reported third-quarter results that exceeded profit expectations and raised its full-year margin and earnings outlook, sending shares up 1% after hours. The denim maker posted adjusted earnings per share of $0.48 for the quarter ended August 30, beating the analyst consensus of $0.36 by $0.12, while revenue reached $1.61 billion, up 4% year over year from $1.54 billion but slightly below the $1.62 billion analyst estimate. On an organic basis, revenue increased 5%, and the company raised its full-year adjusted EPS guidance to $1.54-$1.56, with a midpoint of $1.55 slightly higher than the analyst consensus of $1.54. Operating margin came in at 13.8%, up from 10.8% a year earlier, adjusted EBIT margin expanded to 15.5% from 11.8%, and gross margin improved 450 basis points to 66.2%, helped by tariff refunds totaling $79 million, about $25 million of which was redeployed back into the business during the quarter. For fiscal 2026, Levi Strauss raised its gross margin guidance to up 130 basis points versus the prior year from previous guidance of up 10 basis points, and increased its adjusted EBIT margin outlook to approximately 12.1%, up 70 basis points versus the prior year.
Levi Strauss & Co Class ALevi Strauss beat Q3 profit estimates and raised full-year margin and EPS guidance, with gross margin up 450bp helped by $79M in tariff refunds.
