Levi's Q2 2026 revenue hit $1.47B, up 8% year-over-year. The company credited an 11% surge in women's apparel and supply chain cost reductions for the beat.
Key facts
- Q2 2026 revenue: $1.47B, up 8% YoY.
- Women's business grew 11% YoY.
- Gross margin expanded 200bps to 58.3%.
- DTC revenue rose 12% to $680M.
- Full-year revenue guidance: 3-4% growth.
Levi Strauss & Co. reported Q2 2026 revenue of $1.47 billion, up 8% year-over-year According to @wwd. The women's segment grew 11%, while direct-to-consumer (DTC) revenue rose 12% to $680 million, now representing 46% of total sales.
Gross margin expanded 200 basis points to 58.3%, driven by supply chain improvements including nearshoring and inventory optimization. Operating income climbed 14% to $195 million, with net income reaching $145 million, or $0.36 per diluted share.
The Women's Growth Engine
The women's business, which includes denim, tops, and dresses, now accounts for 38% of total apparel revenue, up from 35% a year ago. Levi's has invested in dedicated women's marketing campaigns and expanded its women's product lines, including athleisure and workwear. The company did not disclose the exact revenue contribution from women's, but the segment's growth rate of 11% outpaced men's at 6%.
Supply Chain as Margin Driver
Levi's has shifted 15% of its production to nearshore facilities in Mexico and Central America over the past 12 months, reducing lead times by 40% and cutting transportation costs by 12%. The company's CFO, Harmit Singh, noted on the earnings call that these changes contributed 150 of the 200 basis point margin expansion.
Guidance and Risks
Levi's reiterated its full-year revenue growth guidance of 3-4% and adjusted EPS of $1.20-$1.25. However, the company flagged potential headwinds from cotton price volatility and consumer spending shifts in the second half of 2026. Wholesale revenue grew just 2%, suggesting department store demand remains tepid.
What to watch
Watch for Levi's Q3 2026 earnings in October, particularly whether women's growth sustains above 10% and if wholesale revenue rebounds from 2% growth. Also monitor cotton futures, as input cost increases could pressure margins in H2.
