Levi Strauss is pushing into new product categories and higher price points as it works to capture a larger share of the premium apparel market.
The San Francisco-based company has expanded beyond its core denim offerings into dresses, skirts, tops, button-down shirts, and sweaters, broadening its appeal across categories.
For the second quarter ended May 31, net revenue rose 8% to $1.56 billion, surpassing analyst estimates of $1.52 billion according to data compiled by LSEG.
CEO Michelle Gass said on a post-earnings call that Levi’s still had an opportunity to capture a “sizable premium segment” it has not yet fully tapped.
The company is expanding its $300 denim line into more stores this year, targeting affluent shoppers who have shown a growing appetite for high-end denim products.
Gass noted that its premium Blue Tab denim line remains in its early stages but is gaining meaningful traction with consumers seeking elevated wardrobe options.
“As the denim leader, we should have our fair share of the premium denim market,” Gass said, signaling confidence in the brand’s upward pricing trajectory.
Women’s clothing sales were a particular bright spot, with Gass citing strong demand for looser silhouettes alongside newer product lines like shirts and knitwear.
The company’s direct-to-consumer business, which now accounts for roughly half of total sales, has been a strategic priority and a key driver of higher margins.
However, that segment continues to skew toward middle- and lower-income shoppers, a group that has pulled back on discretionary spending as food and fuel costs have climbed.
On the marketing front, Levi’s drew significant attention through a campaign tied to FIFA’s temporary removal of branding at Levi’s Stadium during World Cup preparations, generating millions of social media views.
The company also raised its adjusted earnings per share forecast to a range of $1.46 to $1.52, up from its prior outlook of $1.42 to $1.48, reflecting growing confidence in its full-year performance.
Levi’s additionally increased its dividend to shareholders, reinforcing its commitment to returning capital while simultaneously investing in brand and product expansion.
The dual strategy of chasing premium consumers while retaining its mass-market base will be central to how Levi’s positions itself through the remainder of 2026.
