LEVI slips AH despite Q3 beat ($0.48 vs ~$0.36) and FY raise — tariff refunds help, DTC comps flat, US soft
Posted: Thu Oct 08, 2026 6:26 am
Levi Strauss reported after the close Wednesday. Another "beat and raise" that the tape doesn't like, at least in extended hours.
The numbers (Q3, quarter ended Aug 30):
- Adj EPS $0.48 vs ~$0.36 consensus (last year $0.34).
- Revenue $1.61B, +4% reported / +5% organic, a hair under ~$1.62B.
- FY adj EPS guide raised to $1.54–1.56 from $1.46–1.52. Consensus was ~$1.54, so the new range only starts at the street number.
- The raise includes $79M of IEEPA tariff refunds booked in the quarter (roughly +$0.11/share net per TickerGrove's breakdown). Levi plans to put part of that back into promotions and marketing.
- Weak spot: DTC comps were flat. CEO Michelle Gass said US sales fell and warm weather hurt traffic in Europe. Reported revenue growth for the year was trimmed to ~7% because of FX.
- Also: a new $100M accelerated buyback, the dividend up 14% to $0.16, and CFO Harmit Singh retiring (John Vandemore from Skechers starts Nov 1).
Price action: the stock closed at $19.51 (-5%) before the print and traded ~$19.2–19.3 after hours. The 52-week low is $17.72. It has also sold off after three of its last four reports despite beating.
How I'd trade it:
- Treat it as a quality-of-beat story. Strip out the tariff refund and the beat looks a lot smaller, which is why the market is focused on DTC and the US.
- A gap down into the $19 area with no follow-through could set up a reclaim trade toward $19.5. If it can't hold $19 on volume, the low-$18s are next.
- Liquidity is fine but nothing like a mega-cap. Use limits in the first minutes.
Sources (public): [Levi Strauss Q3 press release](https://www.levistrauss.com/press-relea ... -earnings/), [Reuters via Investing.com](https://www.investing.com/news/stock-ma ... nd-4937465)
Would you buy a tariff-refund-driven raise, or does the flat DTC number decide it for you? Anyone watching LEVI at the open?
The numbers (Q3, quarter ended Aug 30):
- Adj EPS $0.48 vs ~$0.36 consensus (last year $0.34).
- Revenue $1.61B, +4% reported / +5% organic, a hair under ~$1.62B.
- FY adj EPS guide raised to $1.54–1.56 from $1.46–1.52. Consensus was ~$1.54, so the new range only starts at the street number.
- The raise includes $79M of IEEPA tariff refunds booked in the quarter (roughly +$0.11/share net per TickerGrove's breakdown). Levi plans to put part of that back into promotions and marketing.
- Weak spot: DTC comps were flat. CEO Michelle Gass said US sales fell and warm weather hurt traffic in Europe. Reported revenue growth for the year was trimmed to ~7% because of FX.
- Also: a new $100M accelerated buyback, the dividend up 14% to $0.16, and CFO Harmit Singh retiring (John Vandemore from Skechers starts Nov 1).
Price action: the stock closed at $19.51 (-5%) before the print and traded ~$19.2–19.3 after hours. The 52-week low is $17.72. It has also sold off after three of its last four reports despite beating.
How I'd trade it:
- Treat it as a quality-of-beat story. Strip out the tariff refund and the beat looks a lot smaller, which is why the market is focused on DTC and the US.
- A gap down into the $19 area with no follow-through could set up a reclaim trade toward $19.5. If it can't hold $19 on volume, the low-$18s are next.
- Liquidity is fine but nothing like a mega-cap. Use limits in the first minutes.
Sources (public): [Levi Strauss Q3 press release](https://www.levistrauss.com/press-relea ... -earnings/), [Reuters via Investing.com](https://www.investing.com/news/stock-ma ... nd-4937465)
Would you buy a tariff-refund-driven raise, or does the flat DTC number decide it for you? Anyone watching LEVI at the open?