Levi’s accelerates growth as ‘DTC-first’ strategy pays off

US denim giant Levi Strauss & Co. has reported net revenues up 14% year-on-year to $1.7 billion (£1.26 billion) for the first quarter ended 1 March 2026, “surpassing guidance for sales, margins and EPS”.

The company has subsequently raised its full-year 2026 outlook, attributing its “strategic pivot to a DTC-first denim lifestyle brand” as the main driver for robust performance across channels, regions and categories.

Michelle Gass, President and CEO of Levi Strauss, said: “We delivered very strong financial performance in the first quarter driven by broad based growth across channels, regions and categories.

“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. Today we are operating from a stronger foundation, executing with focus and intention, with more ways to win than ever before.”

Direct-to-consumer (DTC) net revenues increased 16%, comprising 52% of total net revenues, while e-commerce grew 21%.

In terms of regional growth, the Americas were up 9%, with US-only sales up 4%, Europe up 24% and Asia up 13%.

As a result, full-year net revenues are now predicted to be up 6% (as opposed to 5% previously estimated), with adjusted EBIT margin raised to approximately 12% from 11.8%. Meanwhile, gross margin is expected to “rise slightly” from being “flat the prior year.”

Harmit Singh, Chief Financial & Growth Officer of Levi Strauss, who will soon transition to the role of Special Advisor before retiring, said: “We are pleased to report first quarter revenue, margins and EPS above our guidance.

“Our strategic transformation is translating into higher returns and more profitable growth, enabling us to convert more of our strong revenue growth into bottom line profit. Our great start to the year in Q1, and positive quarter-to-date trends, gives us the confidence to raise our full-year sales, margins and EPS guidance even as we remain prudent about the external environment.”

Levi’s has this week opened a 5,704 sq ft store at 42 Grafton Street in Dublin, marking its largest store in Ireland. It features a gallery-style first floor, where central roof lanterns allow natural light throughout the space - complemented by a signature indigo denim wall feature.