Levi’s Stock Tumbles 4% Despite Q2 Earnings Beat and Raised Guidance— Management Says ‘More Ways to Win T

Shares of Levi Strauss & Co.

(NYSE:LEVI) tumbled 4% on Thursday despite the apparel giant beating second-quarter expectations, raising its full-year fiscal 2026 guidance, and increasing its dividend.

The market's negative reaction stood in sharp contrast to highly optimistic executive commentary, with management declaring the brand has "more ways to win than ever before." Direct-to-Consumer and Lifestyle Pivot The quarter's outperformance was primarily anchored by the brand's ongoing evolution into a direct-to-consumer (DTC) denim lifestyle destination.

Global DTC revenues expanded 8% organically, capturing 51% of total company revenue.

Expansion beyond traditional denim bottoms into categories like tops, shorts, and activewear via Beyond Yoga—which grew 16%—accounted for roughly one-third of the quarter's revenue growth.