Levi Strauss ecommerce sales jump 19% as DTC strategy boosts Q2 growth

Levi Strauss & Co. grew ecommerce revenue and overall sales in its fiscal second quarter, as the retailer continued to invest in its direct-to-consumer (DTC) business.

For the quarter ended May 31, Levi Strauss reported net revenue of $1.56 billion, up 8.0% year over year. Online revenue, which is part of Levi Strauss’ DTC channel, grew even faster, rising 19% over the same period.

During the company’s Q2 earnings call, Levi Strauss president and CEO Michelle Gass said website improvements and a more elevated online assortment helped drive ecommerce sales.

The channel benefited from more traffic, stronger conversion, higher units per transaction and higher average prices, Gass said. Notably, that growth came even as Levi Strauss reduced promotional activity on its site.

Levi Strauss is No. 148 in the Top 2000 Database. The market research tool ranks North America’s largest online retailers by their annual ecommerce sales and more.

Levi Strauss DTC revenue outpaces overall growth

Levi Strauss’ ecommerce momentum fits into its DTC-first strategy, which includes company-operated stores as well as online sales through its websites and mobile apps.

In Q2, the company’s DTC net revenue grew 10.8% to $793.6 million. During the quarter, the channel accounted for 51% of total net revenue, up slightly from 50% a year earlier.

Meanwhile, comparable sales in DTC increased 6.0% in Q2. That marked Levi Strauss’ 17th straight quarter of comparable growth across existing stores and owned digital channels, Gass said.

“Our evolution into a DTC-first, denim lifestyle company — with a much larger addressable market — is translating to faster growth and higher profitability,” Gass said in the company’s earnings release.

Within DTC, ecommerce sales benefited from “continued efforts to premiumize the site experience and elevate our online assortment,” Gass said. She noted that the ecommerce business has grown nearly 60% over the past three years but still represents only about 12% of overall revenue — “remaining underpenetrated versus peers and representing a meaningful opportunity for continued growth.”

As for wholesale, net revenue increased 5.3% to $768.4 million. In U.S. wholesale, Gass noted, the women’s business was a standout. She also said wholesale partners are “increasingly leaning into our diversified lifestyle assortment, reflecting strong consumer demand and confidence in our broader offerings.”

Levi Strauss expands beyond denim jeans

Denim bottoms remain Levi Strauss’ foundation. But the company is also expanding beyond that core category, with those newer areas contributing roughly one-third of top-line growth in Q2, Gass said.

Bottoms revenue still increased 6% in the quarter, supported by strength in core fits and newer, looser silhouettes. At the same time, Levi Strauss is pushing further into what Gass called a “head-to-toe denim lifestyle.”

During the quarter, Gass pointed to strength in lightweight denim, linen shirts and dresses. Shorts revenue grew 11%, while tops revenue rose 5%.

The company is also leaning into premium denim through Blue Tab, its top-tier line. Although still relatively small, Blue Tab grew 40% in Q1 and again in Q2, Gass said.

“As the denim leader, we should have our fair share of the premium denim segment,” Gass said. “And we are significantly under-shared in this category.”

Blue Tab bottoms range from $200 to $350, she said. Meanwhile, truckers and outerwear start at $250 and up. Over time, Gass estimated, the line could become a $100 million to $200 million-plus business.

Beyond Yoga, Levi Strauss’ activewear brand, also posted gains. Revenue rose 16% in the quarter, reaching $43 million. Ecommerce remains the largest part of Beyond Yoga’s business and helped lead its growth in Q2, Gass said.

Levi Strauss updates ecommerce and ERP infrastructure

Alongside growth, Levi Strauss is investing in its digital infrastructure to support its DTC business.

Earlier this year, the company selected SCAYLE to power its global ecommerce platform. Migration of its digital commerce sites was expected to begin this year and continue through 2027.

In parallel, Levi Strauss has made changes to its fulfillment network. Chief financial and growth officer Harmit Singh said the company completed the remapping of Europe to an omnichannel distribution network at the end of Q2. As part of that effort, it consolidated ecommerce fulfillment into distribution centers in Germany and the U.K.

Singh also highlighted progress on the company’s global enterprise resource planning (ERP) transformation. ERP systems help manage business data and processes across stores, sales, inventory and distribution.

Levi’s is moving from a “disjointed, customized ERP system to a standardized ERP system that’s on the cloud,” Singh said, which will help Levi Strauss unlock data and scale AI.

During the quarter, Levi Strauss migrated Asia and Beyond Yoga onto its new global ERP platform. North America has already completed its transition. Europe and the remaining Latin American markets are on track for completion by mid-2027, Singh said.

“Once complete, the company will operate on a single ERP, enabling faster decision-making, supporting our DTC-first model, all while creating the foundation to scale AI and automation globally,” Singh said.

Levi Strauss raises full-year outlook

Following the quarter, Levi Strauss raised its full-year outlook. The company now expects reported net revenue to rise 7.0% to 7.5% for fiscal 2026. Previously, it had expected 5.5% to 6.5% growth.

That guidance is based on continuing operations, reflecting Levi Strauss’ sale of the Dockers brand to Authentic Brands Group earlier this year.

The updated outlook also assumes U.S. tariffs remain at 30% for imports from China and 20% for the rest of the world.

Currently, Levi Strauss is not assuming any benefit from potential tariff refunds. To date, Singh said, those refunds total about $80 million paid.

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