MW Levi's boosts its sales outlook, defying concerns about the impact of the Iran conflict

By Bill Peters

The jeans maker beat earnings expectations as it sells a wider array of denim gear and focuses on selling directly to consumers

Levi Strauss reported quarterly results on Tuesday.

Shares of Levi Strauss climbed in after-hours trading Tuesday after the jeans maker raised its sales and profit outlook despite concerns about surging gas prices and the Iran war - helped by efforts to offer a wider array of denim gear and to sell more directly to consumers.

The company also said that it had started a search for a successor to CFO Harmit Singh, who plans to retire after 13 years in the role. Singh will stay on at Levi Strauss until the company finds a replacement.

The denim giant provided the upbeat outlook, as well as its fiscal first-quarter results, as Wall Street tries to assess the war's impact on consumer demand. The stock tumbled 16.6% in March after the Iran conflict began, its worst monthly performance since it dropped 19.7% in June 2024.

In March, Levi Strauss had downplayed the impact of the Iran war. CFO Singh said then that the Middle East comprised less than 1% of its total business, and that the amount of product it got via the Strait of Hormuz - a key shipping lane that Iran has put under blockade - was "very, very minor." The company's full-year outlook confirmed that view.

Levi's stock $(LEVI)$ jumped 5% in Tuesday's extended trading, after closing the regular session up 0.3%.

The company said it expects sales growth of 5.5% to 6.5% for its current fiscal year, which ends on Nov. 29. That's up from a prior forecast of a 5% to 6% gain.

Levi Strauss also raised its outlook for adjusted earnings per share for the year to $1.42 to $1.48, from $1.40 to $1.46 previously. And it now expects gross margin, a measure of the profitability of sales, to be "flat to slightly up" when compared with the prior year - a bit better than earlier expectations for those margins to be flat.

For the fiscal first quarter to March 1, the company reported adjusted EPS that rose to 42 cents, from 38 cents in the same period last year and above analyst expectations for 37 cents. Sales rose 14% year over year to $1.74 billion, topping expectations for $1.65 billion.

Sales through Levi's own physical and online stores - its direct-to-consumer, or DTC, business - rose 16%, while sales in its business with retailers rose 12%. However, operating margin slipped to 11.4%, due to costs related to tariffs and extra advertising.

"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," said CEO Michelle Gass.

Levi's stock has slipped 5% in 2026 through Tuesday's close, but has jumped 46% over the past 12 months. The company has been looking to expand beyond its iconic jeans selection, rolling out items like tops and dresses.

-Bill Peters

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April 07, 2026 17:24 ET (21:24 GMT)

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