Levi Strauss & Co. LEVI continues to gain traction in the international markets, strengthening its position as a global denim lifestyle brand. International markets represented approximately 60% of the company’s revenues in the first half of fiscal 2026, up from 57% a year ago. In the second quarter of fiscal 2026, international revenues increased 6% organically, led by double-digit growth in Asia and Latin America.
Asia remained a key growth engine, with second-quarter revenues increasing 12% organically. Growth was broad-based across direct-to-consumer (DTC) and wholesale channels, while the operating margin expanded 350 basis points to 15%. Turkey, Japan and India led growth across the region. Meanwhile, China showed early signs of recovery, supported by new leadership and improvements in product and execution, with management encouraged by a return to growth.
Latin America continued to build momentum. Mexico, Levi Strauss’ second-largest market globally, delivered 15% growth in the quarter. Across Latin America, Brazil, the Andes and Colombia posted double-digit growth. Management sees additional opportunities to build on this momentum through store openings, e-commerce and wholesale expansion.
Europe’s reported revenues increased 4%, while organic revenues declined 1% due entirely to the impacts of last year’s distribution-center transition. Underlying trends remained healthy, with DTC revenues increasing 7% and strength in Germany and the U.K. The completed European distribution-network remap is already supporting operational efficiency, distribution expense leverage and profitability. Management is encouraged by high-single-digit wholesale pre-order growth for the second half.
Levi Strauss’ expanding international footprint provides meaningful runway for future growth, particularly as several markets remain in the early stages of development. Management’s confidence is reflected in its raised fiscal 2026 outlook, with organic net revenues expected to increase 5.5-6% compared with the previous 4.5-5.5%. Higher DTC penetration, continued international expansion and broader lifestyle offerings are expected to support the company’s growth trajectory.
LEVI’s Price Performance, Valuation & Estimates
Shares of Levi Strauss have gained 3.3% in the year-to-date period against the industry’s 13.4% decline.
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From a valuation standpoint, LEVI trades at a trailing price-to-sales ratio of 1.18X, below the industry’s average of 1.63X. It has a Value Score of B.
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The Zacks Consensus Estimate for Levi Strauss’ fiscal 2026 earnings implies year-over-year growth of 14.9%, while the same for fiscal 2027 indicates an uptick of 11.3%. Estimates for fiscal 2026 and 2027 have been revised upward by 4 cents each over the past 60 days.
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Levi Strauss currently carries a Zacks Rank #3 (Hold).
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