Levi Strauss & Co. reported better-than-expected earnings for the first quarter of 2026, with direct-to-consumer (DTC) sales surpassing 50% of total revenue for the first time in company history. The apparel giant also raised its full-year guidance, signaling confidence in its ongoing retail strategy despite potential tariff headwinds.
The company’s revenue grew 12% year-over-year to $1.72 billion, beating analyst estimates of $1.65 billion. Earnings per share came in at $0.42, $0.05 higher than projected. ‘The acceleration of our DTC business demonstrates the success of our omnichannel transformation,’ said a company spokesperson in an earnings call.
Analysts note Levi’s has been aggressively expanding its e-commerce platform and company-owned stores while reducing wholesale dependence. ‘This marks a pivotal shift in their business model,’ said a retail analyst at Bernstein. ‘DTC margins are typically 15-20% higher than wholesale.’
However, some caution that the raised guidance doesn’t factor in potential impacts from new tariff proposals by the Trump administration targeting apparel imports. Supply chain experts suggest Levi’s may need to adjust pricing or sourcing if these tariffs take effect.
Looking ahead, investors will watch whether Levi’s can maintain this momentum while navigating macroeconomic uncertainties. The company plans to open 20-30 new stores globally in 2026, with a focus on Asian markets.