Levi’s beats Street in Q1; finance chief to retire
Levi’s is preparing for a change in its C-suite as it reports strong first quarter financial performance.
Levi Strauss & Co. reported net income from continuing operations of $177 million during the first quarter of fiscal 2026, up 26% from $140 million in the prior year quarter.
Net revenues totaled $1.7 billion, up 14% year over year from $1.5 billion. Profit and sales exceeded both Wall Street expectations and the company’s own previously issued guidance.
Direct-to-consumer revenue, or sales from Levi’s website and stores, rose 16%, with a 10% increase in the U.S., a 18% increase in Europe and a 19% increase in Asia, totaling 52% of net revenues for the quarter. Wholesale net revenues increased 12%.
“We delivered very strong financial performance in the first quarter driven by broad-based growth across channels, regions and categories,” said Michelle Gass, president and CEO of Levi Strauss & Co. “Our evolution into a DTC-first denim lifestyle brand is allowing us to capture a much larger addressable market and deliver faster and more consistent growth.”
Levi’s now expects its full year sales to increase 5.5 to 6.5%, up from its prior guidance of between 5% and 6% growth. The company also expects full-year adjusted earnings per share to be between $1.42 and $1.48, up from a prior range of between $1.40 and $1.46 and including an approximate $0.04 per share headwind from a higher tax rate.
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Levi’s finance head transitioning into retirement
Harmit Singh, executive VP and chief financial & growth officer (CFGO) of Levi Strauss & Co. announced plans for retirement. Singh will continue in his role as CFGO until a successor is appointed and then transition to serve as special advisor, following which he will retire.
The company has initiated a search process with the assistance of an executive search firm.
“I want to thank Harmit for his significant contributions to Levi Strauss & Co. over the past 13 years,” said Michelle Gass, president and CEO. “He played an important role in taking the company public, supporting the company’s transformation into a DTC-first retailer, and strengthening our financial foundation and operating rigor, positioning us for long-term profitable growth.”
Singh joined Levi’s. in 2013 as CFO, taking responsibility for the company’s global finance, IT, merger & acquisition, investor relations, strategic sourcing and global business services functions. In 2023, his role expanded to include chief growth officer, where he helped shape corporate strategy, accelerate transformation initiatives and advance efforts including global real estate, franchise expansion and development of the company’s global talent hubs.
Prior to joining Levi’s, Singh served as CFO at Hyatt Hotels Corp. and held divisional CFO roles at Yum! Restaurants International and Pizza Hut.
“It has been a true privilege to work alongside Michelle and the executive leadership team as we’ve driven meaningful, transformative growth,” said Singh. “We have successfully evolved into a more diversified, global, direct-to-consumer business, expanding our addressable market, growing margins and positioning the business for sustainable growth.”
Levi’s 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.
