LEVI

Tapestry, Inc. TPR enters fiscal 2027 with a tougher earnings test after fourth-quarter adjusted earnings beat the Zacks Consensus Estimate and margins expanded sharply. Management still expects profit growth even as revenue growth moderates.The question is whether operating gains can absorb higher marketing spending and changing tariff pressure. Coach remains the earnings engine, while Kate Spade limits the margin for execution errors. Tapestry, Inc. price-consensus-eps-surprise-chart | Tapestry, Inc. Quote Tapestry expects fiscal 2027 revenues of $8.4-$8.5 billion, representing mid-single-digit growth on a nominal and constant-currency basis. That compares with fiscal 2026 pro forma constant-currency growth of 17%.Coach revenues are projected to rise at a high-single-digit rate, while Kate Spade revenues are expected to decline at a high-single-digit rate. Ralph Lauren Corporation RL provides a sector comparison, with first-quarter fiscal 2027 revenues up 14% reported and 13% in constant currency. Management expects fiscal 2027 operating margin to expand about 50 basis points. The plan includes roughly 30 basis points of gross-margin improvement and 20 basis points of leverage from selling, general and administrative expenses.That follows fourth-quarter fiscal 2026 adjusted operating-margin expansion of 250 basis points to 19.3%. For the full year, adjusted gross margin improved 120 basis points despite a 130-basis-point tariff and duty headwind. The fiscal 2027 outlook embeds a mid-20% tariff rate on U.S. inventory receipts and assumes mitigation will make the year-over-year profit impact roughly neutral. Tariffs are expected to provide a modest first-half benefit before becoming a second-half headwind.Sourcing, product mix and operational offsets therefore matter to the margin target. Levi Strauss & Co. LEVI faced similar pressure in its second quarter of 2026, when gross margin rose 10 basis points despite tariff and foreign-exchange headwinds. Coach represented 86.4% of fiscal 2026 revenues, giving the brand substantial influence over consolidated results. Management expects Coach to maintain an operating margin of nearly 36% in fiscal 2027.Kate Spade remains the counterweight. The brand posted a $27.2 million adjusted operating loss in fiscal 2026, and management expects another modest operating loss in fiscal 2027. Tapestry expects fiscal 2027 adjusted earnings of $7.80-$7.90 per share, representing low-double-digit growth. Adjusted free cash flow is projected to approach $1.7 billion as capital expenditures and cloud-computing costs rise to about $300 million.First-quarter adjusted earnings are expected at about $1.55 per share, up by low teens. Gross margin is projected to expand roughly 120 basis points, but higher marketing spending is expected to keep operating margin in line with the prior-year quarter. Image Source: Zacks Investment Research The fiscal 2027 setup combines a credible margin plan with execution risk. Tariff mitigation, elevated marketing and continued Kate Spade losses leave less room for shortfalls even with Coach providing strong profitability.TPR currently carries a Zacks Rank #3 (Hold), which supports a measured stance rather than a clear near-term buy signal. A Zacks Rank #3 can still be appropriate for holding shares while investors monitor execution and estimate trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The stock also has a Growth Score of A, Momentum Score of A and VGM Score of A, alongside a Value Score of C. The stronger Growth and Momentum Scores point to favorable characteristics in those styles, while the VGM Score reflects the combined weighted style picture and the Value Score is less supportive. Because the Style Scores complement the Zacks Rank, the combined picture argues for patience. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tapestry, Inc. (TPR) : Free Stock Analysis Report Ralph Lauren Corporation (RL) : Free Stock Analysis Report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEW YORK, Aug. 20, 2026 (GLOBE NEWSWIRE) -- G-III Apparel Group, Ltd. (NASDAQ: GIII) today announced that its Board of Directors has declared a quarterly cash dividend of $0.10 per share. The dividend is payable on September 29, 2026 to stockholders of record on September 15, 2026. About G-III Apparel Group, Ltd. G-III Apparel Group, Ltd. is a global fashion leader with expertise in design, sourcing, distribution, and marketing. The Company owns and licenses a portfolio of more than 30 preeminent brands, each differentiated by unique brand propositions, product categories, and consumer touchpoints. G-III owns ten iconic brands, including DKNY, Donna Karan, Karl Lagerfeld, Sonia Rykiel, and Vilebrequin, and licenses over 20 of the most sought-after names in global fashion, including Calvin Klein, Tommy Hilfiger, Levi’s, Halston, Champion, Converse, Cole Haan, BCBG, French Connection, Starter, as well as major sports leagues such as the NFL, NBA, NHL and MLB, among others. Statements concerning G-III's expectations regarding future events are "forward-looking statements" as that term is defined under the federal securities laws. Forward-looking statements are subject to risks, uncertainties and factors which include, but are not limited to, risks related to the reliance on licensed product, risks relating to G-III’s ability to increase revenues from sales of its other products, new acquired businesses or new license agreements as licenses for Calvin Klein and Tommy Hilfiger product expire on a staggered basis, reliance on foreign manufacturers, risks of doing business abroad, supply chain disruptions, risks related to acts of terrorism and the effects of war, the current economic and credit environment risks related to our indebtedness, the nature of the apparel industry, including changing customer demand and tastes, customer concentration, seasonality, risks of operating a retail business, risks related to G-III’s ability to reduce the losses incurred in its retail operations, customer acceptance of new products, the impact of competitive products and pricing, dependence on existing management, possible disruption from acquisitions, the impact on G-III’s business of the imposition of tariffs by the United States government and business and general economic conditions, including inflation and higher interest rates, as well as other risks detailed in G-III's filings with the Securities and Exchange Commission. G-III assumes no obligation to update the information in this release. Investor Relations Contact:Nick BacchusSVP of Investor Relations and Treasurer [email protected]

Levi Strauss & Co. LEVI has given investors more to consider after its recent rally, including stronger earnings, a higher fiscal 2026 outlook and improving cash generation.The operating story has improved, but the stock’s valuation, tariff exposure and execution risks make the investment case less straightforward after the move. Levi Strauss reported adjusted earnings of 28 cents per share in the second quarter of fiscal 2026, beating the Zacks Consensus Estimate of 24 cents by 16.7%. The result also increased from 22 cents in the year-ago quarter.Revenues rose 8% year over year to $1.56 billion and surpassed the consensus mark by 2.5%. Organic revenues advanced 5.7%, reflecting balanced growth across regions, channels and product categories.Momentum was not concentrated in one area. DTC, wholesale, U.S. and international markets, women’s and men’s products, and tops and bottoms all contributed to the quarter’s performance. Levi Strauss & Co. price-consensus-eps-surprise-chart | Levi Strauss & Co. Quote Management raised fiscal 2026 reported revenue-growth guidance to 7%-7.5%, up from the prior 5.5%-6.5% view. Organic revenue growth is now expected at 5.5%-6%, compared with the earlier 4.5%-5.5% range.Adjusted earnings per share guidance increased to $1.46-$1.52 from $1.42-$1.48. The updated outlook includes an estimated 4-cent headwind from a higher tax rate.Levi Strauss also expects an adjusted EBIT margin of 12% for fiscal 2026. The company continues to plan 50-60 net new store openings during the year, with most planned for the second half. Cash flow strengthens the shareholder-return story. Adjusted free cash flow increased nearly 60% year over year to roughly $231 million, helped by stronger earnings and disciplined inventory management.Levi Strauss ended the quarter with $849.3 million in cash and cash equivalents and about $1.8 billion in total liquidity. Inventories declined 7% year over year.The company increased its quarterly dividend 14% to 16 cents per share. It also had about $240 million remaining under its existing share-repurchase authorization. Valuation is the main counterweight after the rally. LEVI shares have risen 17.4% in the past three months and 27.8% over the past year.The stock trades at 15.45X forward 12-month earnings, above its five-year median of 13.26X and slightly ahead of the Zacks sub-industry’s 14.51X. It remains below the Zacks Retail-Wholesale sector’s 22.09X and the S&P 500’s 20.22X.The $27 price target, based on 16.38X forward 12-month earnings, supports a balanced view. It suggests that Levi Strauss’ stronger operating progress may already be partly reflected in the shares.American Eagle Outfitters, Inc. AEO is a relevant apparel comparison because it operates American Eagle and Aerie as youth-focused lifestyle brands. Abercrombie & Fitch Co. ANF also offers a useful comparison as a global omnichannel specialty retailer of apparel and accessories. Image Source: Zacks Investment Research Tariffs and foreign exchange remain pressure points. Tariffs and currency already weighed on second-quarter gross margin, while management’s fiscal 2026 outlook assumes current tariff levels remain in place.Foreign exchange is expected to create an approximately 70-basis-point gross-margin headwind in the third quarter. Higher taxes and currency are also projected to reduce earnings per share by 2-3 cents.Expenses are another watch item. Reported SG&A increased to $843 million from $791 million a year earlier, while duplicate distribution costs tied to the U.S. distribution-network transition could persist until consolidation is completed. Expansion into more fashion-sensitive categories also raises execution risk. The bottom line is that Levi Strauss has a stronger fundamental profile, but the stock no longer looks as inexpensive after its rally. Earnings momentum, guidance and cash flow support investor interest, while valuation and cost risks argue against chasing the shares.The stock currently carries a Zacks Rank #3 (Hold), which aligns with a balanced near-term investment case rather than a clear buying opportunity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.LEVI has a Value Score of B, a favorable composite style signal that combines value, growth and momentum characteristics. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Tractor Supply Company TSCO reported adjusted earnings of 81 cents per share for the second quarter of 2026, unchanged from the year-ago period. The metric lagged the Zacks Consensus Estimate of 83 cents.Net sales rose 2.3% year over year to $4.5 billion, driven by new stores. The top line missed the consensus mark of $4.6 billion. Comparable-store sales (comps) fell 1.5% as transaction count decreased 1.7%, partly offset by a 0.2% increase in average ticket. We had expected comps to rise 1.6% for the reported quarter.Comps were positive in April and June, with underperformance in May contributing to the decrease in the quarter. May results were affected by weaker demand in seasonal merchandise, particularly big-ticket products, along with softer consumer spending across discretionary categories. Although the company's consumable, usable and edible categories remained relatively resilient, the companion animal business continued to underperform the overall company, despite showing improved trends through the quarter. Strength across the balance of the company's consumable, usable and edible categories, along with an increase in digital sales, somewhat offset these headwinds. Tractor Supply Company price-consensus-eps-surprise-chart | Tractor Supply Company Quote This Zacks Rank #4 (Sell) company’s shares have lost 20.1% over the past three months compared with the industry’s 12.6% decline. Adjusted gross profit rose 3% year over year to $1.7 billion, while the adjusted gross margin improved 24 basis points (bps) to 37.2%. Disciplined product cost management and tariff-related benefits more than offset increased freight expenses and incremental price investments. Our model had anticipated gross profit to rise 6.5% and gross margin to expand 60 bps in the reported quarter.Selling, general and administrative (SG&A) expenses, including depreciation, amortization and impairment, jumped 14.4% year over year to $1.2 billion. As a percentage of net sales, SG&A expenses increased 290 bps to 26.8%. On an adjusted basis, SG&A expenses increased 7.3% to $1.1 billion, or 118 bps to 25.1% as a percentage of net sales for the quarter, mainly owing to deleverage from weak comps and higher claims and legal settlement expenses. We had expected SG&A costs to increase 7.6% year over year and to rise 50 bps, as a percentage of net sales, to 21.7%.Operating income decreased 19.2% year over year to $467.1 million. On an adjusted basis, operating income dipped 5.1% year over year to $548.3 million, translating into an adjusted margin of 12.1%. We had expected operating income to increase 5% year over year. Tractor Supply ended the quarter with cash and cash equivalents of $231.6 million, long-term debt of $2.2 billion and total stockholders’ equity of $2.6 billion. In first-half 2026, net cash provided by operating activities was $653.1 million. In the same period, the company incurred capital expenditures of $435.7 million.During second-quarter 2026, Tractor Supply returned $260.9 million to shareholders. This included the repurchase of 3.9 million shares of its common stock for $135.3 million and the payment of $125.6 million in quarterly cash dividends.It opened 28 Tractor Supply stores and three new Petsense by Tractor Supply stores in the reported quarter. Management now expects 2026 net sales growth of 2.5-3.5%, with comps ranging from a 1% decline to flat. The reported operating margin is projected between 8% and 8.3%, while the adjusted rate is expected at 8.5-8.8%. It had earlier projected net sales growth of 4-6% and comps growth of 1-3% for 2026.Adjusted net income is forecast between $990 million and $1.1 billion, with adjusted earnings anticipated at $1.90-$2.00 per share. Tractor Supply also withdrew the long-term financial framework presented at its December 2024 Investor Day and plans to issue an updated framework with its fourth-quarter results. Management had earlier guided operating margin between 9.3% and 9.6% and net income of $1.1-$1.2 billion, with earnings per share anticipated to be $2.13-$2.23. We have highlighted three better-ranked stocks, namely Genesco Inc. GCO, Designer Brands Inc. DBI and Levi Strauss & Co. LEVI.Genesco, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Genesco’s current financial-year EPS indicates growth of 55.2% from the year-ago figure. GCO delivered an average earnings surprise of 3.8% in the trailing four quarters.Designer Brands, designer and producer of footwear and accessories, currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 112.8%, on average. The Zacks Consensus Estimate for Designer Brands’ current financial-year sales indicates growth of 0.5% from the year-ago figure.Levi Strauss, designer and marketer of jeans, casual wear and related accessories, currently has a Zacks Rank of 2. LEVI delivered an average earnings surprise of 11.3% in the trailing four quarters.The consensus estimate for Levi Strauss’ current financial-year sales indicates growth of 6.4% from the year-ago figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tractor Supply Company (TSCO) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report Designer Brands Inc. (DBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Levi Strauss & Co. LEVI reported strong second-quarter fiscal 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The denim apparel maker continued to benefit from healthy consumer demand, robust Direct-to-Consumer (DTC) momentum, broad-based international growth and improving profitability. Management raised its fiscal 2026 revenue and earnings outlook.The global denim leader reported adjusted earnings of 28 cents per share, which beat the Zacks Consensus Estimate of 24 cents by 16.7%. The bottom line also increased 27.3% from the 22 cents reported in the year-ago quarter.Quarterly net revenues increased 8% year over year to $1.56 billion, surpassing the Zacks Consensus Estimate of $1.52 billion by 2.5%. Organic revenues advanced 5.7%, reflecting balanced growth across regions, channels and product categories.Despite the earnings beat and higher full-year guidance, LEVI shares declined 5.5% following the earnings release. While management reaffirmed confidence in the business and highlighted broad-based growth, the company also noted that tariff and foreign exchange pressures remained headwinds and were embedded in its updated fiscal 2026 outlook. Levi Strauss & Co. price-consensus-eps-surprise-chart | Levi Strauss & Co. Quote Levi Strauss' DTC business remained the primary growth engine during the quarter. DTC revenues increased 10.8% on a reported basis and 8.4% organically, benefiting from higher store productivity and strong digital momentum. E-commerce revenues climbed 19% on a reported basis and 17% organically, while DTC comparable sales advanced 6%. The DTC channel accounted for 51% of total company revenues during the second quarter.Wholesale revenues grew 5.3% on a reported basis and 3.1% organically, reflecting healthy demand across retail partners. Beyond Yoga also performed strongly, with revenues increasing 15.8% year over year.The Zacks Consensus Estimate for the DTC and wholesale channels was pegged at $805 million and $734 million, respectively, for the fiscal second quarter.Management emphasized that the company's balanced growth strategy continued to generate momentum across wholesale and DTC, U.S. and international markets, women's and men's businesses, as well as tops and bottoms. Categories beyond denim bottoms contributed roughly one-third of quarterly revenue growth, highlighting Levi Strauss' transformation into a broader denim lifestyle company. The Americas generated revenues of $815.5 million, increasing 9% on a reported basis and 6.8% organically. Within the region, the U.S. business grew 5%, supported by continued strength across both DTC and wholesale channels.Europe reported revenues of $420.2 million, up 4.2% on a reported basis but down 0.8% organically due to the timing impact of last year's distribution center transition. Excluding this temporary disruption, underlying demand remained healthy, supported by strong DTC performance across key markets.Asia continued to outperform, with revenues increasing 10.1% on a reported basis and 11.9% organically to $283.7 million, reflecting double-digit growth across both DTC and wholesale channels. Management also highlighted strong performances across Turkey, Japan and India, while noting early signs of improvement in China. Mexico remained another standout market with 15% growth and Latin America also delivered double-digit gains across Brazil, Colombia and the Andes region. The Levi's brand generated $1.46 billion in revenues during the quarter, increasing 8.1% on a reported basis and 5.6% organically. Total Levi's Brands revenues rose 7.8% on a reported basis and 5.5% organically, while Levi Strauss Signature posted modest growth.Women's revenues advanced 11%, supported by continued demand across seasonal assortments and an expanding lifestyle offering. Bottoms revenues increased 6%, driven by core fits and looser silhouettes, while shorts grew 11%. Tops revenues increased 5%, or 7% excluding the European distribution center transition, benefiting from strength in blouses, wovens, sweaters and polos. Per management, encouraging traction in its premium Blue Tab collection as Levi Strauss expanded beyond its traditional denim franchise.The company added nearly 3 million new loyalty members during the quarter, bringing total global membership to almost 50 million. Meanwhile, e-commerce represents about 12% of company revenues despite growing nearly 60% over the past three years, highlighting a significant long-term growth opportunity. Gross profit increased to $979.1 million from $905.8 million in the year-ago quarter. Gross margin expanded 10 basis points to 62.7%, backed by the lower product costs and pricing actions, partly offset by tariffs and foreign exchange headwinds.Selling, general and administrative expenses were $843.4 million compared with $791 million in the prior-year quarter. Adjusted SG&A increased 6.5% to $837.9 million, mainly due to higher selling expenses and unfavorable foreign exchange impacts. The adjusted SG&A margin declined 80 basis points year over year to 53.6% in the second quarter. Disciplined cost management helped adjusted EBIT margin expand 70 basis points to 9%. LEVI ended the second quarter with $849.3 million in cash and cash equivalents and total liquidity of approximately $1.8 billion, providing ample financial flexibility. Total inventories declined 7% year over year, reflecting disciplined inventory management.Levi Strauss returned $53.9 million to shareholders through dividends during the quarter and continues to have $240 million available under its share repurchase authorization. Adjusted free cash flow increased nearly 60% year over year to $230.9 million. The company announced a quarterly dividend of 16 cents per share, representing a 14% increase from the prior year. The company expects continued business momentum in the third quarter, with reported and organic net revenues projected to increase 4%-5% year over year, despite no anticipated benefit from foreign exchange.Gross margin is expected to expand by approximately 10 basis points to 61.8%, even with an estimated 70-basis-point foreign exchange headwind. Adjusted EBIT margin is projected to improve to 11.9%, reflecting continued operating leverage and disciplined cost management.Adjusted EPS is expected to be in the range of 34-36 cents, including a 2-3 cents per share headwind from a higher tax rate and the impact of foreign exchange on gross margin. Management expects margin expansion to continue through the second half, with a more meaningful improvement anticipated in the fourth quarter. Following its strong first-half performance, Levi Strauss raised its fiscal 2026 outlook. Management said the company is taking into account the entire second-quarter beat into its updated guidance, reflecting confidence in continued business momentum.The company now expects reported revenue growth of 7%-7.5%, up from the previous 5.5%-6.5% forecast. Organic revenue growth is projected at 5.5%-6%, compared with the earlier 4.5%-5.5% range.Gross margin is expected to expand by approximately 10 basis points, supported by a favorable sales mix, including higher DTC sales, continued growth in the women's category, stronger international performance, lower promotional activity and ongoing cost-efficiency initiatives. The company expects an adjusted EBIT margin of 12% for the full year.Adjusted EPS guidance was raised to $1.46-$1.52 from the previous $1.42-$1.48 range, despite incorporating an estimated 4-cent-per-share headwind from a higher tax rate. The outlook assumes current tariff levels remain in place and does not anticipate any significant deterioration in macroeconomic conditions, inflation, supply-chain disruptions or currency movements.The company continues to expect 50-60 net new store openings during fiscal 2026, with most openings planned for the second half. Management reaffirmed confidence in achieving its long-term objectives of $10 billion in annual revenues and a 15% operating margin, supported by profitable growth and disciplined execution. LEVI Stock Past Three-Month Performance Image Source: Zacks Investment Research Shares of this Zacks Rank #2 (Buy) company have risen 7.8% over the past three months against the industry’s 1.2% decline. Genesco Inc. GCO is a Nashville-based specialty retail and branded company. It sells footwear and accessories in retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2.The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%.Tapestry, Inc. TPR is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.5% and 13.9%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Tapestry, Inc. (TPR) : Free Stock Analysis Report Designer Brands Inc. (DBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Levi Strauss & Co.? Here are five stocks we like better. Levi Strauss beat Q2 expectations and raised its full-year outlook for the second straight quarter, with organic revenue up 6% and adjusted EPS of $0.28, up 27% year over year. Management said it is “passing the entire Q2 beat” into guidance. Direct-to-consumer growth continued to drive results, with DTC revenue up 8% and comparable sales up 6% for the 17th consecutive quarter of comp growth. Strength was broad-based, led by Asia, the U.S., and women’s products. Margins improved despite tariff and currency pressure, as gross margin rose to 62.7% and adjusted EBIT margin expanded to 9%. The company also lifted its dividend and reported strong cash flow and lower inventory. Why Levi's Digital Strategy Is Paying Off in a Big Way Levi Strauss & Co. (NYSE:LEVI) reported stronger-than-expected fiscal second-quarter results and raised its full-year outlook, citing broad-based growth across channels, geographies, genders and product categories. President and CEO Michelle Gass said the quarter showed that the company’s strategy to become a “DTC-first lifestyle company” is gaining traction. On an organic basis, net revenue rose 6% in the quarter, with direct-to-consumer revenue up 8% and comparable sales up 6%. Gass said the quarter marked the company’s 17th consecutive quarter of comparable sales growth. → SK Hynix’s Nasdaq Listing Could Reset the AI Memory Trade Levi Strauss Gains as DTC Continues to Fuel Revenue Growth “Quarter after quarter, our results demonstrate that our strategies are working and momentum is building,” Gass said. The company said international markets continued to show momentum, with Asia revenue up 12% and the U.S. up 6%. Global wholesale increased 3%, led by strength in the U.S. wholesale channel. → 2 Short Squeezes for Summer Speculation: What the Bears Are Getting Wrong Calvin Klein's Parent May Be the Market's Best Bargain Women’s remained a standout category, with revenue up 11% in the quarter. Gass said Levi’s gained market share in both men’s and women’s bottoms, supported by brand strength, marketing and product innovation. Gass said the company’s push beyond denim bottoms contributed roughly one-third of top-line growth in the quarter. Bottoms revenue increased 6%, while tops were up 5%, or 7% excluding the impact of last year’s European distribution center transition. Shorts rose 11%, and white denim in women’s grew 70%. → How TeraWulf’s Anthropic Deal Booted Up a $19B AI Empire The company highlighted continued demand for looser silhouettes, including the 501 ’90s for women and 501 Loose for men, while noting that core fits such as skinny, slim, boot cut and straight still make up the majority of the bottoms business. Chief Financial and Growth Officer Harmit Singh said reported net revenue increased 8%, while organic revenue rose 6%, despite a two-point drag tied to last year’s European distribution center transition. Gross margin expanded 10 basis points to 62.7%, helped by lower product costs and pricing actions, while tariffs and foreign exchange were headwinds. Adjusted SG&A increased 6.5%, primarily due to higher selling expenses and unfavorable foreign exchange, but leveraged 80 basis points as a percentage of revenue. Adjusted EBIT margin expanded 70 basis points to 9%, while adjusted EBIT dollars grew 18%. Adjusted diluted earnings per share were $0.28, up 27% from a year earlier and ahead of guidance. Inventory ended the quarter down 7%, and adjusted free cash flow increased nearly 60% year over year to $231 million. Singh said the company is increasing its third-quarter dividend by $0.02 to $0.16 per share. Levi Strauss raised its fiscal 2026 outlook, with Singh saying the company is “passing the entire Q2 beat” into full-year guidance. The company now expects reported net revenue to increase 7% to 7.5% and organic net revenue to rise 5.5% to 6%. The company raised its adjusted diluted EPS outlook to a range of approximately $1.46 to $1.52, up from its prior range of $1.42 to $1.48. Gross margin is expected to expand approximately 10 basis points for the full year, while adjusted EBIT margin is expected to be 12%. The guidance assumes incremental U.S. tariffs of 30% on imports from China and 20% on imports from the rest of the world. Singh said the guidance does not include any potential benefit from tariff refunds, which total approximately $80 million paid to date. For the third quarter, the company expects reported and organic net revenue to increase 4% to 5%, with adjusted diluted EPS of approximately $0.34 to $0.36. By segment, the Americas delivered 7% growth, with the U.S. up 5% on momentum in both DTC and wholesale. Europe declined 1% in the quarter due to last year’s distribution center transition, but first-half revenue grew mid-single digits. Singh said Europe’s DTC business grew 7%, and the company is encouraged by high single-digit wholesale pre-order growth for the second half. Asia revenue increased 12%, with double-digit growth in both DTC and wholesale. Singh said performance was strong across markets, and Gass noted progress in China under new leadership. The company also provided updates on operational initiatives. Singh said Levi Strauss completed the remap of Europe to an omnichannel distribution network, consolidating e-commerce fulfillment into distribution centers in Germany and the U.K. In the U.S., the company remains on track to transition its Hebron distribution center to Maersk by the beginning of the fourth quarter. Levi Strauss also migrated Asia and Beyond Yoga onto its new global ERP platform, following North America. Europe and the remaining Latin American countries are expected to move to the platform by mid-2027. Singh said the ERP system is intended to unlock better data access, faster decision-making and the ability to scale AI and automation. During the call, Gass emphasized marketing initiatives including the company’s “Behind Every Original” campaign and collaborations tied to music, sports and fashion. She also discussed the company’s soccer-related product collaborations and a viral marketing moment involving Levi’s Stadium, which she said generated approximately 1 billion press impressions. Beyond Yoga revenue rose 16%, led by e-commerce. Gass said the brand is expanding beyond traditional activewear into lifestyle categories such as casual pants, travelwear, linen, tops, sweaters and dresses. She said the company has fewer than 20 Beyond Yoga stores and is still learning from that format. In response to analyst questions, management said the consumer remains resilient across value, core and premium price points. Signature, the company’s value-focused brand, grew at a low single-digit rate in the quarter and 9% in the first half. Gass said the company expects Signature to accelerate in the second half. Singh said two-thirds of second-quarter revenue growth came from units and one-third from average unit retail, with the company expecting a more balanced contribution for the full year. He cited full-price selling, DTC growth, premium offerings such as Blue Tab and women’s category expansion as factors supporting average unit retail growth. Gass said the company remains optimistic about the denim category and its broader move into head-to-toe denim lifestyle offerings. “We have more ways to win than we’ve ever had,” she said. Levi Strauss & Co is a global apparel company best known for its denim jeans and casual wear. Founded in 1853 in San Francisco by Bavarian immigrant Levi Strauss, the company pioneered the modern blue jean with the introduction of rivet-reinforced work pants. Over its more than 160-year history, Levi Strauss has evolved into a lifestyle brand, offering a broad portfolio that includes denim for men, women and children, as well as tops, outerwear, footwear and accessories. The company's flagship label, Levi's®, is recognized worldwide for its iconic styles such as the 501® Original Fit Jeans, while additional brands, including Dockers®, Target core metric, and Denizen® by Levi's, cater to diverse price points and consumer segments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Levi Strauss & Co. Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Few American brands have a legacy to match Levi Strauss Inc., which recently celebrated the 150th anniversary of its 501 jeans — and, by extension, the birth of one of the few true iconic styles. There’s enough brand there that, even though the company needed to cover its logo on Levi’s Stadium during the World Cup because it wasn’t an official sponsor, everyone knew the secret as the covered logo retained its well-known batwing shape. More from WWD Footwear's Looking at a Five Percent Spike in Prices Per Pair of Shoes This Year, FDRA Says Carbitex Founder on Why Flexible Carbon Fiber Matters in More Than Just Performance Footwear Luxury Consumers Seen Prioritizing Product, AI, Price-value Ratio, and Looking Past Star Creative Directors “We had to cover it up,” said Michelle Gass, president and chief executive officer, in an interview as the company topped second-quarter profit and sales expectations and raised its outlook. “The team recognized that, saw the moment, was super fast and agile, leaned in, posted it on social media. The rest is history, but we’re up to about a billion impressions on that.” Getting that much credit for not being there is a trick. But the company has proven it’s good at learning new tricks as it continues to transition from a primarily men’s bottoms business to a head-to-toe fashion brand. Levi’s second-quarter net income from continuing operations — Dockers is being held for sale — rose 18.8 percent to $95 million from $80 million a year earlier. Adjusted profits tallied $110 million with earnings per share of 28 cents, 4 cents ahead of the 24 cents analysts forecast, according to Yahoo Finance. Revenues for the quarter ended May 31 rose 8 percent to $1.6 billion. But it was a tough day on Wall Street for fashion generally and Levi’s stock fell 5.6 percent to $23 in after-hours trading. Organic sales increased by 6 percent with the Americas up 7 percent, Europe down 1 percent due to a distribution center change and Asia up 12 percent. The Beyond Yoga business, bought in 2021, grew by 16 percent. Gass said that “momentum’s building and we’re continuing to deliver consistent results.” “It is about the strategies,” Gass said. “I’d say over the last couple of years, we’ve spoken to you about strengthening the foundation, making strategic choices and really amplifying the power of the Levi’s brand. “We recognize that it continues to be a pretty dynamic time here in the U.S. and around the world,” she said. “But the starting point for us is at times like these, consumers do turn to brands that they know and that they trust. And for millions of people around the world, that’s Levi’s. People are still shopping, but what they’re going to gravitate towards is what’s new, the innovation, etc. And that’s what we’re bringing. We’ve had a deeper pipeline than probably we’ve ever had.” She pointed to the summer offering, with lightweight fabrics, linen tops and more. “We are executing and the consumer is responding,” Gass said. And the CEO said Levi’s still has plenty of room to grow. “Some of these opportunities that are key to our strategy, we’re still very underpenetrated,” she said. “Take tops as a category. That’s relatively new for us. So it’s a much bigger space for us to play in. And we’re seeing great growth in these new categories. We’re also starting to have all of this upside for a brand that has as much history and heritage, but we’re really changing the business model.” That new, more retail-centric business model — 51 percent of the company’s sales come from its direct-to-consumer operation — is proving to be a better business model. Harmit Singh, chief financial and growth officer, said: “We’ve probably generated in the first half more cash than we did all of last year. Inventory is down [7 percent on a dollar basis]. We’re growing, but inventory is down because we are really managing that well.” And he argued that that discipline is extending throughout the operation. “Every quarter, we talk about our brand — this is the strongest it’s ever been,” Singh said. “We don’t take that for granted. We have to go from strength to strength. I mean, last year, for example, people said, ‘Oh, Beyoncé, how do you lap it?’ And you’ve seen how we have lapped it. You can’t just sit back.” Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange Sign up for WWD's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.

For the quarter ended May 2026, Levi Strauss (LEVI) reported revenue of $1.56 billion, up 8% over the same period last year. EPS came in at $0.28, compared to $0.22 in the year-ago quarter. The reported revenue represents a surprise of +2.52% over the Zacks Consensus Estimate of $1.52 billion. With the consensus EPS estimate being $0.24, the EPS surprise was +16.67%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Levi Strauss performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Geographic Revenues- Americas: $815 million versus $785.03 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9% change. Geographic Revenues- Beyond Yoga: $43 million compared to the $39.46 million average estimate based on four analysts. Geographic Revenues- Asia: $284 million versus the four-analyst average estimate of $275.26 million. The reported number represents a year-over-year change of +10.1%. Geographic Revenues- Europe: $420 million compared to the $423.58 million average estimate based on four analysts. The reported number represents a change of +4.2% year over year. Total Levi?s Brands Net Revenues: $1.52 billion versus $1.48 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.8% change. View all Key Company Metrics for Levi Strauss here>>> Shares of Levi Strauss have returned +4.6% over the past month versus the Zacks S&P 500 composite's +1.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Reported Net Revenues up 8%; Organic Net Revenues up 6% Operating Margin of 7.8%, up 35 BPS to PY; Adj EBIT Margin of 9.0%, up 70 BPS to PY Continuing Operations Diluted EPS of $0.24, up 20% YoY; Adj Diluted EPS of $0.28, up 27% YoY Raises Full Year 2026 Net Revenue and EPS Outlook; Increases Quarterly Dividend SAN FRANCISCO, July 08, 2026--(BUSINESS WIRE)--Levi Strauss & Co. (NYSE: LEVI) today announced financial results for the second quarter ended May 31, 2026. "The Levi’s® brand is connecting with consumers around the world in more powerful ways than ever before, and our Q2 results are another proof point that our strategies are working and our team is executing," said Michelle Gass, President and CEO of Levi Strauss & Co. "Our evolution into a DTC-first, denim lifestyle company—with a much larger addressable market—is translating to faster growth and higher profitability. While we are pleased with the progress, we are still in the early stages of our long-term growth journey, with more ways to win than ever before." "We delivered another strong quarter driven by broad-based growth across markets, channels and categories," said Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co. "That growth translated into higher profitability through gross margin expansion and disciplined SG&A leverage, demonstrating the strength and scalability of our operating model. Given our strong first-half results, we are passing through our full Q2 beat and raising our full-year guidance. We are also increasing our dividend, reflecting confidence in the strength of our business, our cash flow generation and our ability to create long-term shareholder value." Financial Highlights for the Second Quarter Net Revenues of $1.6 billion increased 8% on a reported basis and 6% on an organic basis versus Q2 2025. DTC (Direct-to-Consumer) net revenues increased 11% on a reported basis and 8% on an organic basis. DTC growth on a reported basis reflected a 5% increase in the U.S., a 12% increase in Europe and a 12% increase in Asia. DTC growth on an organic basis reflected a 7% increase in Europe and a 12% increase in Asia. Net revenues from e-commerce grew 19% on a reported basis and 17% on an organic basis. DTC comparable sales growth was 6%. DTC comprised 51% of total net revenues in the second quarter. Wholesale net revenues increased 5% on a reported basis and 3% on an organic basis. Operating margin was 7.8% in Q2 2026 compared to 7.5% in Q2 2025. Adjusted EBIT margin was 9.0% in Q2 2026 compared to 8.3% in Q2 2025. Interest and other income (expense), net, which includes foreign exchange gains and losses, were zero in the aggregate in Q2 2026 and expenses of $6 million in the aggregate in Q2 2025. The effective income tax rate was 22.4%, compared to 22.3% in Q2 2025. Net income from continuing operations was $95 million compared to $80 million in Q2 2025. Adjusted net income was $110 million compared to $89 million in Q2 2025. Diluted earnings per share from continuing operations was $0.24 compared to $0.20 in Q2 2025. Adjusted diluted earnings per share was $0.28 compared to $0.22 in Q2 2025. Highlights include: Additional information regarding DTC Comparable sales growth, a key metric, is provided at the end of this press release. Additional information regarding Adjusted SG&A, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, Adjusted diluted earnings per share, Adjusted free cash flow, as well as amounts presented on an organic net revenues basis and constant currency basis, all of which are non-GAAP financial measures, is provided at the end of this press release. Balance Sheet Review as of May 31, 2026 Cash and cash equivalents were $849 million, while total liquidity was approximately $1.8 billion. Total inventories decreased 7% on a dollar basis compared to Q2 2025. Shareholder Returns In the second quarter, the company returned $53.9 million in the form of dividends to shareholders, a 5% increase over prior year, representing a dividend of $0.14 per share. The $200 million accelerated share repurchase program launched in the first quarter of 2026 is expected to be settled in the third quarter. As of May 31, 2026, the company had $240 million remaining under its current share repurchase authorization, which has no expiration date. The company declared a dividend of $0.16 per share, a 14% increase over prior year, totaling approximately $62 million, payable in cash on August 5, 2026 to the holders of record of Class A common stock and Class B common stock at the close of business on July 22, 2026. Fiscal 2026 Guidance Guidance for 2026 is based on continuing operations, reflecting the Dockers® business being reported in discontinued operations. Guidance assumes U.S. tariffs on imports from China remain at 30% and Rest-of-World at 20%. The following guidance is provided for the year ending November 29, 2026: This outlook also assumes no significant worsening of macro-economic pressures on the consumer, inflationary pressures, supply chain disruptions, potential tariffs or currency fluctuations. A reconciliation of non-GAAP forward looking information to the corresponding GAAP measures cannot be provided without unreasonable efforts due to the challenge in quantifying various items including but not limited to, the effects of foreign currency fluctuations, taxes, potential tariffs and rebates, and any future restructuring, restructuring-related, severance and other charges. Investor Conference Call To access the conference call, please pre-register on https://register-conf.media-server.com/register/BIaa579b9dc68f4e8b85f3a07e93aae5b8 and you will receive confirmation with dial-in details. A live webcast of the event can be accessed on https://edge.media-server.com/mmc/p/kopa6vxc. A replay of the webcast will be available on http://investors.levistrauss.com starting approximately two hours after the event and archived on the site for one quarter. About Levi Strauss & Co. Levi Strauss & Co. (LS&Co.) is one of the world's largest brand-name apparel companies and a global leader in jeanswear. The company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's®, Levi Strauss Signature™, and Beyond Yoga® brands. Its products are sold in approximately 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,300 retail stores and shop-in-shops. Levi Strauss & Co.'s reported 2025 net revenues were $6.3 billion. For more information, go to http://levistrauss.com, and for financial news and announcements go to http://investors.levistrauss.com. Forward-Looking Statements This press release and related conference call contains, in addition to historical information, forward-looking statements, including statements related to: future financial results, including the company’s expectations for the full fiscal year 2026 net revenues (both reported and on an organic net revenues basis), gross margin, adjusted EBIT margins, adjusted SG&A, adjusted diluted earnings per share and effective tax rate; business and market outlook; consumer preferences; progress against strategic priorities; the ongoing restructuring of our operations and our ability to achieve any anticipated cost savings associated with such restructuring; trajectory of direct-to-consumer business; macroeconomic conditions, including impacts of and uncertainties around U.S. tariffs and potential rebates and any additional retaliatory measures by impacted exporting countries; impacts of foreign currency exchange; capital expenditures; pricing initiatives; inventory growth; new store openings; investments in high growth initiatives; future dividend payments and share repurchases; and efforts to diversify product categories and distribution channels, and the related revenue projections. The company has based these forward-looking statements on its current reasonable assumptions, expectations and projections about future events. Words such as, but not limited to, "believe," "will," "may," "so we can," "when," "anticipate," "intend," "estimate," "expect," "project," "could" and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessary estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties, some of which are beyond our control, that could cause actual results to differ materially from those suggested by the forward-looking statements. Investors should consider the information contained in the company's filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for fiscal 2025, especially in the "Management's Discussion and Analysis of Financial Condition and Results of Operations", "Summary of Risk Factors" and "Risk Factors" sections, and its Quarterly Report on Form 10-Q for the quarter ended May 31, 2026, especially in the "Management’s Discussion and Analysis of Financial Condition and Results of Operations", section. Other unknown or unpredictable factors also could have material adverse effects on future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release and related conference call may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if no date is stated, as of the date of this press release and related conference call. The company is not under any obligation and does not intend to update or revise any of the forward-looking statements contained in this press release and related conference call to reflect circumstances existing after the date of this press release and related conference call or to reflect the occurrence of future events, even if such circumstances or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Key Metrics DTC Comparable sales growth is used by management to evaluate the performance of our existing Levi’s® brand company owned and operated mainline and outlet store base and owned digital channels by measuring year‑over‑year changes in net revenues for stores open for at least 12 full fiscal months, excluding the effects of changes in our store portfolio and other events that materially affect comparability such as significant relocations, or expansions and remodels. In fiscal years with 53 weeks, the impact of the additional week is excluded, and prior‑year periods are adjusted as necessary to align comparable weeks. DTC Comparable sales growth is presented on a constant currency basis and is intended as a supplemental operating metric, which may not be comparable to similarly titled measures used by other companies. Non-GAAP Financial Measures The company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP) and the rules of the SEC. To supplement its financial statements prepared and presented in accordance with GAAP, the company uses certain non-GAAP financial measures, such as Adjusted SG&A, Adjusted SG&A margin, Adjusted EBIT (both reported and on a constant-currency basis), Adjusted EBIT margin (both reported and on a constant-currency basis), Adjusted EBITDA, Adjusted net income (both reported and on a constant-currency basis), Adjusted diluted earnings per share (both reported and on a constant-currency basis), organic net revenues, Adjusted free cash flow, and return on invested capital to provide investors with additional useful information about its financial performance, to enhance the overall understanding of its past performance and future prospects and to allow for greater transparency with respect to important metrics used by management for financial and operating decision-making. The company presents these non-GAAP financial measures to assist investors in seeing its financial performance from management's view and because it believes they provide an additional tool for investors to use in computing the company's core financial performance over multiple periods with other companies in its industry. The tables found below present Adjusted SG&A, Adjusted SG&A margin, Adjusted EBIT (both reported and on a constant-currency basis), Adjusted EBIT margin (both reported and on a constant-currency basis), Adjusted EBITDA, Adjusted net income (both reported and on a constant-currency basis), Adjusted diluted earnings per share (both reported and on a constant-currency basis), organic net revenues, Adjusted free cash flow, and return on invested capital and corresponding reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Certain items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company’s financial position, results of operations and cash flows and should therefore be considered in assessing the company’s actual financial condition and performance. Non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgment by management in determining how they are formulated. Some specific limitations include but are not limited to, the fact that such non-GAAP financial measures: (a) do not reflect cash outlays for capital expenditures, contractual commitments or liabilities including pension obligations, post-retirement health benefit obligations and income tax liabilities; (b) do not reflect changes in, or cash requirements for, working capital requirements; and (c) do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on indebtedness. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. The company urges investors to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate its business. See "RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES" below for reconciliation to the most comparable GAAP financial measures. A reconciliation of non-GAAP forward-looking information to the corresponding GAAP measures cannot be provided without unreasonable efforts due to the challenge in quantifying various items including but not limited to, the effects of foreign currency fluctuations, taxes, and any future restructuring, restructuring-related, severance and other charges. Organic Net Revenues and Constant-Currency The company reports net revenues in accordance with GAAP, as well as on an organic net revenues basis in order to facilitate period-to-period comparisons of our revenues which excludes the impact of fluctuating foreign currency exchange rates from the change in reported net revenues, net revenues derived from business acquisitions, divestitures or wind downs impacting the comparable reporting date and the estimated impact of any 53rd week. The company reports certain operating results in accordance with GAAP, as well as on a constant-currency basis in order to facilitate period-to-period comparisons of its results without regard to the impact of fluctuating foreign currency exchange rates. These measures exclude the results of our Dockers® business, which is classified as discontinued operations. The term foreign currency exchange rates refers to the exchange rates used to translate the company's operating results for all countries where the functional currency is not the U.S. Dollar into U.S. Dollars. Because the company is a global company, foreign currency exchange rates used for translation may have a significant effect on its reported results. In general, the company's financial results are affected positively by a weaker U.S. Dollar and are affected negatively by a stronger U.S. Dollar as compared to the foreign currencies in which it conducts its business. References to operating results on a constant-currency basis mean operating results without the impact of foreign currency translation fluctuations. The company calculates constant-currency amounts by translating local currency amounts in the prior-year period at actual foreign currency exchange rates for the current period. Constant-currency results do not eliminate the transaction currency impact, which primarily includes the realized and unrealized gains and losses recognized from the measurement and remeasurement of purchases and sales of products in a currency other than the functional currency and of forward foreign exchange contracts. The company believes disclosure of organic net revenues and Adjusted EBIT constant-currency, Adjusted EBIT Margin constant-currency and Adjusted Net Income constant-currency results is helpful to investors because it facilitates period-to-period comparisons of its results by increasing the transparency of the underlying performance by excluding the impact of fluctuating foreign currency exchange rates. However, organic net revenues and constant-currency results are non-GAAP financial measures and are not meant to be considered in isolation or as a substitute for comparable measures prepared in accordance with GAAP. Organic net revenues and constant-currency results have no standardized meaning prescribed by GAAP, are not prepared under any comprehensive set of accounting rules or principles and should be read in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Organic net revenues and constant-currency results have limitations in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Source: Levi Strauss & Co. Investor Relations RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE SECOND QUARTER AND FISCAL YEAR 2026 The following information relates to non-GAAP financial measures, and should be read in conjunction with the investor call held on July 8, 2026, discussing the company’s financial condition and results of operations as of and for the quarter ended May 31, 2026. Because the results of our Dockers® business are classified as discontinued operations, those results are not reflected in our non-GAAP measures. In the table below, we define the following non-GAAP measures: Adjusted SG&A: The following table presents a reconciliation of SG&A, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted SG&A for each of the periods presented. Adjusted EBIT and Adjusted EBITDA: The following table presents a reconciliation of net income from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBIT and Adjusted EBITDA for each of the periods presented. Adjusted Net Income: The following table presents a reconciliation of net income from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted net income for each of the periods presented. Adjusted Diluted Earnings per Share: The following table presents a reconciliation of diluted earnings per share from continuing operations, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted diluted earnings per share for each of the periods presented. Adjusted Free Cash Flow: Adjusted free cash flow, a non-GAAP financial measure, includes net cash flow from operating activities less purchases of property, plant and equipment from continuing and discontinued operations. This measure therefore includes the results of our Dockers® business, which is classified as discontinued operations. We believe Adjusted free cash flow is an important liquidity measure of the cash that is available after capital expenditures for operational expenses and investment in our business. We believe Adjusted free cash flow is useful to investors because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth and return capital to stockholders. The following table presents a reconciliation of net cash flow from operating activities, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted free cash flow for each of the periods presented. Return on Invested Capital: We define Return on invested capital ("ROIC") as the trailing four quarters of Adjusted net income before interest and after taxes divided by the average trailing five quarters of total invested capital. We define total invested capital as total debt plus shareholders' equity less cash and short-term investments. We believe ROIC is useful to investors as it quantifies how efficiently we generated operating income relative to the capital we have invested in the business. Our calculation of ROIC is considered a non-GAAP financial measure because we calculate ROIC using the non-GAAP metric Adjusted net income. Although ROIC is a standard financial metric, numerous methods exist for calculating a company's ROIC. As a result, the method we use to calculate our ROIC may differ from the methods used by other companies. This metric is not defined by GAAP and should not be considered as an alternative to earnings measures defined by GAAP. The table below sets forth the calculation of ROIC for each of the periods presented. Organic Net Revenues: The table below sets forth the calculation of net revenues by segment on an organic net revenues basis for each of the periods presented. The table below sets forth the calculation of net revenues by channel on an organic net revenues basis for each of the periods presented. The table below sets forth the calculation of net revenues by brand on an organic net revenues basis for each of the periods presented. Constant-Currency Adjusted EBIT and Constant-Currency Adjusted EBIT margin: The table below sets forth the calculation of Adjusted EBIT and Adjusted EBIT margin on a constant-currency basis for each of the periods presented. Constant-Currency Adjusted Net Income and Constant-Currency Adjusted Diluted Earnings per Share: The table below sets forth the calculation of Adjusted net income and Adjusted diluted earnings per share on a constant-currency basis for each of the periods presented. View source version on businesswire.com: https://www.businesswire.com/news/home/20260708278591/en/ Contacts Investor Contact:Aida OrphanLevi Strauss & Co.(415) [email protected] Media Contact:Mark CazaresLevi Strauss & Co.(415) [email protected]