Strong growth in direct sales, online shopping and women's apparel showed consumers continue to spend.
- Levi's Q2 results indicated a shift in consumer spending patterns, with direct-to-consumer sales surpassing half of total revenue.
- E-commerce revenue rose 19%, comparable store sales increased 6%, and women's apparel and Beyond Yoga grew 11%.
- CEO Michelle Gass said Levi's shift to a denim lifestyle brand continued to drive growth.
Levi Strauss & Co. (LEVI) stock dropped overnight even after the company topped fiscal second-quarter (Q2) expectations, with CEO Michelle Gass saying its shift toward becoming a denim lifestyle brand is driving growth across women's apparel, digital channels and company-owned stores.
Levi Q2 Earnings Give Peek Into Consumer Spending Trends
Beyond the Q2 earnings beat, Levi's operating performance highlighted several shifts in consumer shopping habits. The quarter pointed to growing demand for direct brand engagement, stronger digital purchasing, resilient store traffic and expanding interest in lifestyle apparel beyond traditional denim.
Q2 results showed shoppers are choosing Levi's own retail channels over wholesale partners, with direct-to-consumer sales accounting for 51% of total revenue for the first time. The results also underscored continued momentum in online shopping and premium pricing.
E-commerce revenue advanced 19% year-on-year, while comparable sales across company-operated stores increased 6%, extending Levi's streak of positive comparable-store growth to seventeen consecutive quarters.
Women's apparel revenue rose 11%, while the Beyond Yoga brand posted 16% growth, reflecting continued consumer interest in broader lifestyle and athleisure products.
Net revenue increased 8% to $1.56 billion, and earnings per share increased to $0.28, both of which exceeded analysts’ consensus estimates of $1.51 billion and $0.24, respectively, according to Fiscal AI data. The Americas remained the largest contributor, with revenue climbing 9%, including a 5% increase in the U.S.
Levi Strauss stock traded more than 5% lower overnight ahead of Thursday.
Levi’s Denim Lifestyle Push Fuels Market Share Gains
Speaking during the Q2 earnings call, Gass said the apparel maker’s transformation into a broader denim lifestyle brand continued to strengthen its competitive position across key categories.
“Our evolution into a denim lifestyle brand is enabling us to continue to drive outsized performance in women's, up 11% in the quarter, and we further extended our leading market share position in both men's and women's, reflecting the strength of our brand, impactful marketing and a steady pipeline of product innovation,” said Gass.
Levi’s raised its fiscal 2026 reported revenue growth outlook to 7%-7.5%, up from the previous 5.5%-6.5% range, while increasing adjusted EPS guidance to $1.46-$1.52. Levi's also boosted its quarterly dividend by 14% to $0.16 per share.
What LEVI Retail Traders Are Saying
On Stocktwits, retail sentiment for LEVI improved to ‘extremely bullish’ from ‘bullish’ territory the previous day, with a 5,000% jump in message volume in 24 hours.
A user said, “These earnings were good for their company and raised guidance. Probably went down due to war concern and whole market was red anyway. This should ease tomorrow or next day and be back up.”
Another user said, “Potentially a reversal on market open like we saw with Nke. The numbers were good so I don’t see why not.”
LEVI stock has gained over 17% year-to-date.
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