Levi Strauss & Co. raised its full-year profit outlook Wednesday after third-quarter revenue rose 4% to $1.6 billion and adjusted earnings climbed to 48 cents a share from 34 cents a year earlier. The company now expects adjusted earnings of $1.54 to $1.56 a share for fiscal 2026, up from $1.46 to $1.52, and plans a new $100 million accelerated share buyback, according to its earnings release. Wholesale grew 6%, Asia grew 10% organically and Beyond Yoga grew 9%.
There’s an asterisk on the margin story. Refunds of tariffs collected under the International Emergency Economic Powers Act added about 16 cents to the quarter’s earnings, and Levi is putting roughly $60 million of that windfall back into promotions and marketing this year. The soft spot was direct-to-consumer, up just 2% with U.S. direct sales down 1%, which CEO Michelle Gass said fell short of internal expectations, though she said trends are picking up heading into the holidays and expects mid-single-digit growth there in the fourth quarter.