Levi Strauss & Co.’s (LS&Co.) first quarter of 2026 came in stronger than expected on Tuesday with revenue up 14 percent to $1.7 billion. The company raised its full-year guidance, now estimating growth of 5.5 to 6.5 percent, up from 5 to 6 percent.
This optimistic outlook bodes well for the denim industry.
“The denim category remains healthy,” Michelle Gass, LS&Co. president and CEO, said during the company’s earnings call on Tuesday, adding that denim is accelerating in the U.S and outperforming overall apparel. “Clearly, as the leader in the category, we are fueling that growth through all the innovation and fashion cycles we’re bringing.”
Levi’s bottom business grew 7 percent in Q1. Gass credited innovative fabrics, fits and finishing for infusing newness across the brand’s signature and fashion styles. One example of this is the 501 Thermodapt, a new climate adapting fabric innovation. The all-seasons technology uses a hollow-core cotton yarn to enhance breathability, cooling, and moisture-wicking when it’s hot and insulate when it’s cold.
Jeans with wider proportions continue to trend. The women’s segment has been driven by new variations of the Cinch Baggy. In Q1, Levi’s added the Cinch Wide Leg, Barrel and Shorts. Meanwhile, Gass noted that the brand introduced its first barrel jean for men, the Baggy Barrel fit.
One notable expectation to the baggy trend is the women’s 517, which increased 25 percent in Q1. The cropped bootcut style was worn often by Carolyn Bessette-Kennedy and featured in “Love Story: John Kennedy Jr. & Carolyn Besette.”
Levi’s categories beyond denim contributed to approximately one-fourth of the brand’s top-line growth for the quarter. The brand saw momentum with men’s polo, button-down and quarter zip tops, while women’s tops, wovens, blouses and sweaters were segment standouts. “Dresses also continued to perform well as a natural extension of our lifestyle strategy,” Gass said.
Gass emphasized the impact of sharpening Levi’s product strategy by shifting toward a more globally directive assortment. Product commonality increased to nearly 50 percent in the brand’s DTC business, driving greater productivity through SKU reduction. It has also enabled Levi’s to focus on fewer, bigger product stories that showcase head-to-toe collections such as the Grunge Prep collection and Blue Tab.
“As we look to spring and summer, our global product assortment will continue to deliver against our big ideas with a unified lens. We will build on the momentum we’re seeing today by expanding lightweight and linen-blend product across tops, dresses and bottoms, while also leaning into shorts, jorts and other warm weather lifestyle pieces,” she said.
