Levi Strauss beats quarterly expectations, raises guidance and dividend
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- Levi Strauss reported adjusted EPS of 28 cents vs. 24 cents expected and revenue of $1.56 billion vs. $1.52 billion expected, beating on both top and bottom lines in its second fiscal quarter
- Levi raised its full-year adjusted EPS guidance to $1.46–$1.52 (from $1.42–$1.48) and lifted its sales growth outlook to 7–7.5% (from 5.5–6.5%), ahead of LSEG consensus expectations
- Levi also raised its dividend alongside the earnings beat, citing confidence in its outlook
- Levi's shares fell more than 5% in extended trading despite the beat and raised guidance
- CEO Michelle Gass said about two-thirds of the quarter's sales growth came from unit sales rather than higher prices, calling demand "healthy" and noting strength across core, signature, and the new premium blue tab lines
- CFO Harmit Singh said roughly half of expected full-year growth would come from higher prices and half from unit sales
- Levi posted net income of $87.3 million (22 cents per share) for the quarter ended May 31, up from $67 million (17 cents per share) a year earlier, with sales rising about 8% year-over-year
Why it matters: Levi delivered a clean beat and signaled confidence by raising both guidance and its dividend, yet the 5%+ drop in extended trading suggests investors were looking for a bigger raise or weighing the price-vs-volume mix. With Gass crediting unit volume for two-thirds of growth, Levi is making the case it can expand without leaning entirely on price hikes — a critical proof point as gas prices pressure its core consumer.
