Levi’s sales pop

Levi’s just turned in its fastest quarterly revenue growth in nearly four years, posting $1.74 billion in first-quarter net revenue and then lifting its full-year forecast days later. The company now expects fiscal 2026 sales growth of 5.5% to 6.5%, up from 5% to 6%, and adjusted earnings per share of $1.42 to $1.48, up from $1.40 to $1.46. (investors.levistrauss.com, reuters.com) The surprise was how broad the demand was. Levi’s said first-quarter revenue rose 14% as reported, with the Americas up 9%, Europe up 24%, and Asia up 13%, which means this was not one hot product or one strong country carrying the quarter. (investors.levistrauss.com, reuters.com) Its own stores and website did a lot of the work. Direct-to-consumer sales rose 16%, e-commerce rose 21%, and direct-to-consumer made up 52% of total net revenue, which gives Levi’s more control over pricing than a brand that mostly sells through department stores. (investors.levistrauss.com) Wholesale was strong too, which is the part that says retailers still wanted more Levi’s on their shelves. Levi’s said wholesale revenue rose 12%, so the quarter was not just a story about shoppers buying more on Levi.com. (investors.levistrauss.com) Then one old style suddenly mattered again. Chief executive Michelle Gass said sales of Levi’s 517 jeans rose 25% in the quarter after the bootcut style was featured in “Love Story: John F. Kennedy Jr. & Carolyn Bessette,” which premiered on FX and Hulu on February 12, less than three weeks before Levi’s quarter ended on March 1. (finance.yahoo.com) The 517 is tied to Carolyn Bessette Kennedy because she wore the bootcut jeans in 1990s New York, and the new series put that look in front of a younger audience that did not live through that era. Levi’s still sells the style today, including a women’s version priced around $110. (finance.yahoo.com) That media bump landed on top of a bigger fashion cycle already helping the company. Reuters reported that Levi’s premium Blue Tab line, women’s denim skirts and dresses, and non-denim men’s bottoms were all selling well, while Levi’s also said women’s apparel rose 13% and Beyond Yoga grew 23% in the quarter. (reuters.com, finance.yahoo.com, investors.levistrauss.com) The quarter was strong enough that tariffs did not knock the story off course. Reuters said Levi’s had earlier warned that higher United States import duties could cut fiscal 2026 margins by 150 basis points, or about $100 million, and the company said it was offsetting that hit with price increases, supplier talks, cost controls, and sourcing that relies less on China. (reuters.com) Investors liked the combination of higher guidance, strong wholesale orders, and proof that a 169-year-old denim brand can still get a sales jolt from a television costume. Yahoo Finance reported the stock rose about 12% in premarket trading after the results. (finance.yahoo.com)