Levi Strauss & Co.

Q2 2026 Quarterly Account Review

Review period: April 1 through June 30, 2026
Fiscal-quarter note: Levi Strauss’ fiscal Q2 ended May 31, 2026
Review status: Preliminary, pending USPS account data and July 8 financial results

1. Executive Account Summary

Levi Strauss & Co. is a global apparel company headquartered in San Francisco. Its continuing brand portfolio includes Levi’s, Levi Strauss Signature and Beyond Yoga. The company sells through its own stores, e-commerce sites, department stores, chain retailers and approximately 3,300 stores and shop-in-shops across about 120 countries.

Levi Strauss is increasingly focused on direct-to-consumer sales. In fiscal Q1 2026:

Total net revenue reached $1.742 billion, up 14% as reported and 9% organically.
Direct-to-consumer revenue increased 16% as reported.
E-commerce revenue increased 21% as reported and 17% organically.
Direct-to-consumer represented 52% of total revenue.
U.S. direct-to-consumer revenue increased 10%.
Total inventory increased 4% year over year.

This growth supports a potentially expanding parcel and returns profile, although no proportional USPS increase should be assumed without shipment data.

Levi’s U.S. e-commerce operation confirms a USPS role for:

P.O. box deliveries.
APO, FPO and military-address deliveries.
Ground shipments to addresses that cannot use private carriers.
Priority Mail during certain military holiday cutoff periods.

The customer also supports mailed returns through a Narvar-managed return process and may split customer orders into multiple packages from different fulfillment locations.

The most relevant Q2 2026 developments were:

Strong Q1 e-commerce and direct-to-consumer growth.
Continued transition toward a DTC-first business model.
Completion of a major global ERP migration in 14 Asia-Pacific countries.
Introduction of conversational analytics and additional AI-supported business processes.
Global football-federation partnerships with the United States, Mexico, England and France.
Launch of the multiyear EMERGENT music program.
Planned retirement of Chief Financial and Growth Officer Harmit Singh.
Continued operational separation following the February 27 completion of the Dockers sale.

Preliminary USPS assessment: The clearest verified USPS opportunity is protecting and expanding address-exclusive volume involving P.O. boxes, APO/FPO destinations and other USPS-dependent deliveries. Additional opportunities may exist in Ground Advantage, Priority Mail, returns, split-order reduction, address quality, store and employee shipments, marketing fulfillment and Beyond Yoga parcels. The principal competitive risks are private parcel carriers, omnichannel store returns and internal routing rules that may assign USPS only to limited address types.

2. Quarterly Performance Comparison

USPS account performance

Metric	Q2 2026	Q1 2026	Q2 2025	Change
USPS revenue	Unavailable	Unavailable	Unavailable	Not calculable
USPS package volume	Unavailable	Unavailable	Unavailable	Not calculable
Average revenue per package	Unavailable	Unavailable	Unavailable	Not calculable
Ground Advantage volume	Unavailable	Unavailable	Unavailable	Not calculable
Priority Mail volume	Unavailable	Unavailable	Unavailable	Not calculable
P.O. box volume	Unavailable	Unavailable	Unavailable	Not calculable
APO/FPO volume	Unavailable	Unavailable	Unavailable	Not calculable
Returns volume	Unavailable	Unavailable	Unavailable	Not calculable
Beyond Yoga volume	Unavailable	Unavailable	Unavailable	Not calculable
USPS product mix	Unavailable	Unavailable	Unavailable	Not calculable

Average revenue per package should be calculated as:

USPS revenue ÷ USPS package volume

The Project spreadsheet is required to calculate:

Q2 2026 versus Q1 2026 revenue and volume.
Q2 2026 versus Q2 2025 revenue and volume.
Percentage changes by USPS product.
Average revenue per package.
Levi’s versus Beyond Yoga activity.
Outbound versus returns volume.
P.O. box and APO/FPO trends.
Fulfillment-origin changes.
Account engagement and pricing performance.
USPS versus private-carrier share.

Available company performance context

Company metric	Q1 2026	Q1 2025	Change
Total net revenue	$1.742B	$1.527B	+14%
Organic net revenue	Not separately stated	Not separately stated	+9%
DTC revenue	Not separately stated	Not separately stated	+16% reported
E-commerce revenue	Not separately stated	Not separately stated	+21% reported
Net income from continuing operations	$177M	$140M	+26%
Inventory	Not disclosed in dollars	Not disclosed in dollars	+4%

Important limitation: These are corporate financial results, not USPS account results. Fiscal Q2 results were scheduled for release on July 8, after the review period.

3. Important Changes and Trends

E-commerce growth increases the addressable parcel base

Levi Strauss reported 21% reported e-commerce growth and 16% reported DTC growth in Q1. DTC represented 52% of total company revenue.

Potential USPS significance: A larger e-commerce channel may increase:

Residential parcel volume.
Returns and exchanges.
Split shipments.
replacement orders.
P.O. box and military-address orders.
customer-service recovery shipments.
address-correction requirements.

Actual USPS participation depends on Levi’s carrier-routing logic.

Orders may ship in multiple packages

Levi’s states that customer orders may be divided into multiple shipments so available items can arrive sooner. It also notes that cutoff times vary because the company uses multiple shipping locations.

Potential USPS significance: Split fulfillment can increase package count and transportation expense. USPS should determine:

How frequently orders are split.
Whether carrier selection differs by origin.
Whether items are shipped from stores, distribution centers or third parties.
Whether order consolidation could reduce postage without delaying delivery.
Whether USPS receives only certain portions of split orders.

USPS has exclusive access to selected address types

Levi’s states that P.O. box and APO/FPO orders can only be shipped through USPS Ground service and cannot be expedited.

Potential USPS significance: USPS has a protected role for these addresses. The account team should quantify:

P.O. box volume.
APO/FPO/DPO volume.
military holiday volume.
Alaska and Hawaii volume.
failed private-carrier address attempts.
address-conversion and correction opportunities.

Returns are supported through both stores and mail

Levi’s permits eligible online returns within 30 days. Customers can return merchandise at stores or initiate mailed returns through a Narvar-managed process.

Potential USPS significance: Store returns compete with postal reverse logistics, but mail returns remain relevant for customers without nearby stores, exchanges, replacements and geographically remote buyers.

Technology modernization may change shipping operations

Levi Strauss continued its global SAP S/4 Fashion rollout in Q2. By May, the company had retired more than 90 legacy systems, standardized more than 80% of business processes and moved more than 2,600 employees onto the common platform. Its April migration placed 14 Asia-Pacific countries on the global system.

Potential USPS significance: A unified ERP may affect:

Order routing.
carrier selection.
fulfillment visibility.
inventory availability.
returns.
vendor compliance.
invoice processing.
shipment attribution.

USPS should determine whether postal products and account identifiers are correctly configured in the new global system.

Portfolio simplification following the Dockers sale

The final closing of the Dockers sale occurred on February 27, shortly before Q2. Levi Strauss stated that the divestiture sharpened its focus on Levi’s and Beyond Yoga.

Potential USPS significance: Any year-over-year account comparison must separate:

Continuing Levi’s activity.
Beyond Yoga activity.
Historical Dockers volume.
Dockers postage now controlled by Authentic Brands Group or its licensees.

A decline caused by Dockers separation should not automatically be interpreted as lost Levi’s business.

4. Relevant Company Developments

April 7, 2026: Strong Q1 results and higher outlook

Levi Strauss reported revenue, margin and earnings above guidance and increased its full-year outlook. E-commerce revenue grew 21% as reported, while U.S. DTC revenue grew 10%.

USPS analysis: The result indicates strong consumer-channel momentum and supports a parcel-growth discussion. USPS volume must still be independently verified.

April 7, 2026: CFO transition announced

Levi Strauss announced that Chief Financial and Growth Officer Harmit Singh would retire after a successor is appointed and a transition period is completed.

USPS analysis: This is not a direct shipping trigger, but it may affect executive sponsorship, procurement oversight and major vendor decisions.

April 8, 2026: EMERGENT music program launched

The Levi’s brand partnered with COLORSxSTUDIOS on a multiyear global program supporting emerging artists.

Potential USPS impact:

Artist and influencer product seeding.
event merchandise.
promotional kits.
limited-edition apparel.
media shipments.
campaign materials.

No shipment volume was disclosed.

April 13, 2026: Football-federation partnerships launched

Levi’s launched global partnerships with the national football federations of the United States, Mexico, England and France ahead of major summer competition.

Potential USPS impact:

Fan merchandise.
limited-edition products.
influencer seeding.
event and retail materials.
promotional kits.
campaign-related e-commerce demand.

The campaigns may create Q2 and Q3 parcel activity, but no carrier or fulfillment details were disclosed.

May 7, 2026: Conversational analytics introduced

Levi Strauss expanded its data transformation through a conversational analytics platform built on its unified cloud environment.

USPS analysis: Better analytics may influence inventory placement, order routing, carrier selection, delivery promises and returns. USPS should seek inclusion in transportation-performance dashboards.

May 12, 2026: Global ERP expansion detailed

The company reported completion of the East Asia Pacific and Greater China migration covering 14 countries. The U.S., Canada, Mexico, India, South Africa and Beyond Yoga were already operating on the common ERP platform.

USPS analysis: The standardized platform may create an opportunity to improve USPS label configuration, reporting, account attribution and product selection across Levi’s and Beyond Yoga.

June 24, 2026: Q2 earnings call scheduled

Levi Strauss scheduled its fiscal Q2 earnings announcement for July 8. No Q2 financial results were available by June 30.

USPS analysis: Final corporate Q2 conclusions should be updated after the earnings release, while USPS-specific conclusions must remain based on postal account data.

5. Potential USPS Impact

Ground Advantage

Potential Ground Advantage candidates include:

Jeans.
shirts.
tops.
underwear.
accessories.
belts.
hats.
selected footwear.
Beyond Yoga apparel.
replacement items.
ordinary returns.
store-transfer parcels.
employee and marketing materials.

Ground Advantage is already required for certain P.O. box and military-address shipments from the U.S. site.

Priority Mail

Priority Mail may support:

Military-address holiday shipments.
customer-service recovery.
replacement items.
time-sensitive gifts.
limited-edition launches.
influencer and media kits.
event merchandise.
urgent store replenishment.
high-value multi-item orders.

Priority Mail Express

Potential applications include:

Last-minute gifts.
urgent customer replacements.
campaign or event materials.
celebrity and influencer seeding.
critical store or headquarters materials.

The current carrier used for Levi’s published overnight service was not identified.

Returns services

The existing Narvar-managed process allows customers to select a return or exchange method and print a label.

Potential USPS opportunities include:

USPS Returns integration.
printerless QR-code returns.
convenient Post Office drop-off.
return tracking.
exchange routing.
consolidation of return data.
rural-customer access.
lower-cost returns for lightweight apparel.

USPS should determine which carrier Narvar currently assigns.

Address quality

Levi’s lists incomplete or incorrect addresses as a possible cause of delivery delays.

Potential USPS tools include:

CASS-certified validation.
ZIP+4 matching.
apartment and unit validation.
National Change of Address processing.
Address Change Service.
APO/FPO formatting support.
P.O. box validation.
returned-package analysis.

Multiple fulfillment locations

Levi’s states that it uses multiple shipping locations and may split orders into several packages.

USPS should map:

Owned distribution centers.
third-party logistics providers.
ship-from-store locations.
Beyond Yoga facilities.
vendor-direct shipping.
return centers.
each origin’s USPS and private-carrier usage.
postage-paying entities and CRIDs.

Marketing and promotional fulfillment

The Q2 music and football partnerships may generate:

Product-seeding kits.
direct-mail invitations.
retail activation materials.
samples.
influencer parcels.
limited-edition product launches.
event supplies.

This is a possible opportunity, not confirmed USPS volume.

6. Opportunities

1. Protect address-exclusive USPS volume

Quantify and protect:

P.O. box shipments.
APO/FPO/DPO shipments.
military holiday parcels.
private-carrier address exceptions.
rural and remote destinations.

2. Expand Ground Advantage beyond mandatory USPS addresses

Use package-level data to identify ordinary residential orders where Ground Advantage can compete with the incumbent carrier.

3. Determine the current returns carrier

Review Narvar routing and compare USPS Returns with the existing network by cost, convenience, transit time and recovery speed.

4. Build a Levi’s and Beyond Yoga account map

Identify:

Every fulfillment origin.
Every USPS account and CRID.
Every return center.
Postage-paying entities.
Third-party logistics providers.
private-carrier contracts.
ship-from-store locations.

5. Separate Dockers from continuing operations

Remove Dockers volume from like-for-like account comparisons or clearly identify its transfer to a new owner.

6. Reduce split shipments

Analyze how often orders are divided among multiple packages and whether better inventory positioning or consolidation rules could reduce transportation expense.

7. Support campaign and product-launch fulfillment

Engage marketing and e-commerce teams regarding:

Football partnerships.
EMERGENT artists.
influencer product seeding.
limited-edition drops.
media kits.
retail-event materials.

8. Integrate USPS data with the new ERP

Confirm that SAP and related transportation systems can:

Identify USPS products accurately.
apply correct pricing.
preserve CRID attribution.
produce shipment reporting.
route P.O. box and military orders correctly.
compare carrier performance.
support USPS Returns.

9. Prepare for peak season

Develop forecasts for:

Back-to-school.
fall product launches.
Black Friday and Cyber Monday.
holiday gifting.
military-address cutoff dates.
January returns.

7. Risks and Concerns

USPS revenue and package-volume data were unavailable.
Fiscal Q2 financial results had not been released by June 30.
Private parcel carriers likely handle a substantial portion of ordinary e-commerce orders.
USPS may currently be limited primarily to P.O. boxes and APO/FPO addresses.
Ship-from-store and multi-origin fulfillment may fragment USPS revenue.
Narvar may control return-carrier selection.
In-store returns reduce postal reverse-logistics volume.
Multiple shipments increase transportation cost and delivery complexity.
Dockers divestiture may distort year-over-year comparisons.
ERP migration could temporarily affect routing, account attribution or label configuration.
Apparel returns can be high because of sizing, fit and style preferences.
Free shipping for qualifying loyalty orders may pressure parcel costs.
Tariffs and higher advertising expenses were already affecting margins.
Current USPS agreements, expiration dates, carrier allocations, service issues and previous commitments remain unknown.

8. Customer Questions

What were Q2 2026 USPS revenue and package volume compared with Q1 2026 and Q2 2025?
How much historical USPS volume was associated with Dockers?
Which entities now control former Dockers shipping activity?
Which carriers handle ordinary Levi.com ground, two-day and overnight orders?
What percentage of U.S. e-commerce packages moves through USPS?
How much USPS volume comes from:
- P.O. boxes?
- APO/FPO/DPO addresses?
- Alaska and Hawaii?
- ordinary residential addresses?
- returns?
- Beyond Yoga?
Which fulfillment centers and stores generate USPS labels?
Who controls carrier-routing rules?
How frequently are customer orders split into multiple packages?
What are the average package weight, dimensions, zone and value?
Which carrier does Narvar assign to mailed returns?
How many online returns are mailed versus returned to stores?
Are printerless USPS returns available?
Are there recurring P.O. box or military-address service issues?
Has the SAP migration changed carrier routing or reporting?
Are all USPS CRIDs, payment accounts and pricing agreements correctly loaded into the new ERP?
Will the football and EMERGENT campaigns generate special fulfillment requirements?
Which company manages influencer and promotional shipments?
Are there known USPS pickup, scanning, delivery, claims, billing or returns issues?
When does the current USPS pricing agreement expire?
Which previous commitments remain open?

9. Recommended Actions

USPS actions

Retrieve Q2 2026, Q1 2026 and Q2 2025 USPS revenue and package volume.
Update the review after Levi Strauss releases fiscal Q2 results on July 8.
Separate Levi’s, Beyond Yoga and historical Dockers activity.
Identify every fulfillment origin, return center, CRID and postage-paying entity.
Obtain a representative all-carrier shipment file.
Quantify P.O. box, APO/FPO, Alaska, Hawaii and ordinary residential volume.
Analyze Ground Advantage for eligible apparel parcels currently moving through competitors.
Review Narvar and determine the current return carrier.
Evaluate USPS Returns and printerless return options.
Analyze split shipments and opportunities for consolidation.
Confirm USPS configuration in SAP and transportation systems.
Review campaign, influencer and retail-event fulfillment.
Build back-to-school, fall and holiday forecasts.
Confirm pricing-agreement expiration and renewal requirements.
Document service issues, previous commitments, responsible parties and due dates.

Recommended customer follow-up

Schedule a QAR involving:

E-commerce operations.
Global logistics and transportation.
Distribution-center operations.
Beyond Yoga logistics.
Returns and customer experience.
Information technology and SAP leadership.
Procurement.
Finance.
Marketing fulfillment.
Third-party logistics and Narvar representatives.

The initial discussion should focus on carrier allocation, mandatory USPS address volume, returns, fulfillment origins, Dockers separation, split shipments and ERP configuration.

10. Salesforce-Ready Account Update

Q2 2026 QAR: Levi Strauss & Co. continued its transition into a DTC-first apparel company. Fiscal Q1 net revenue reached $1.742 billion, up 14% as reported, while DTC revenue increased 16% and e-commerce revenue increased 21%. DTC represented 52% of total revenue.

Levi’s U.S. e-commerce policy confirms that P.O. box and APO/FPO orders can only be shipped through USPS Ground service. The company uses multiple shipping locations, may split orders into multiple packages and supports mailed returns through a Narvar-managed process.

Q2 developments included the EMERGENT music partnership, football-federation partnerships with the United States, Mexico, England and France, a major Asia-Pacific ERP migration and continued AI and analytics modernization. Fiscal Q2 results were not available by June 30 and were scheduled for July 8.

Potential USPS opportunities include protecting P.O. box and military-address volume, expanding Ground Advantage to ordinary residential apparel shipments, Priority Mail for time-sensitive orders, USPS Returns, printerless returns, address-quality services, promotional fulfillment and integration with Levi Strauss’ new SAP environment.

Risks: USPS account performance and carrier share were unavailable. Private carriers likely handle most standard orders, in-store returns compete with postal returns, split shipments increase complexity and the Dockers divestiture may distort year-over-year results.

Next steps: Retrieve quarterly USPS data, map all fulfillment and return origins, separate Levi’s, Beyond Yoga and Dockers activity, obtain all-carrier shipment data, review Narvar return routing, validate SAP configuration and schedule a transportation review.

Follow-up date: Not provided.

11. Information Required to Finalize the QAR

Q2 2026 USPS revenue and package volume.
Q1 2026 USPS revenue and package volume.
Q2 2025 USPS revenue and package volume.
Average revenue per package.
USPS product-level activity.
Levi’s versus Beyond Yoga volume.
Historical Dockers volume.
Current parcel-carrier mix.
Fulfillment origins.
Return centers.
USPS CRIDs and payment accounts.
Package weights, dimensions, zones and values.
P.O. box volume.
APO/FPO/DPO volume.
Alaska and Hawaii volume.
Split-shipment rate.
Return and exchange volume.
Narvar carrier configuration.
Pickup arrangements.
Current pricing agreement.
Agreement expiration date.
Known service issues.
Previous commitments.
Open opportunities.
Last meeting date.
Next action and follow-up date.

12. Sources

Levi Strauss & Co., April 7, 2026: Q1 revenue, DTC and e-commerce growth, inventory, margins, profitability and business outlook.
Levi Strauss & Co., April 7, 2026: Planned retirement and transition of Chief Financial and Growth Officer Harmit Singh.
Levi Strauss & Co., April 8, 2026: Launch of the EMERGENT global music program with COLORSxSTUDIOS.
Levi Strauss & Co., April 13, 2026: Partnerships with the U.S., Mexican, English and French football federations.
Levi Strauss & Co., May 7, 2026: Introduction of conversational analytics.
Levi Strauss & Co., May 12, 2026: SAP modernization, retirement of legacy systems and migration of 14 Asia-Pacific countries.
Levi’s U.S. Shipping Information, reviewed June 30, 2026: Ground, two-day and overnight options, multiple fulfillment locations, split shipments and USPS-only service for P.O. boxes and APO/FPO addresses.
Levi’s Returns and Exchanges, reviewed June 30, 2026: Thirty-day return period, store returns and Narvar-managed mailed returns.
Levi Strauss & Co., March 3, 2026: Final completion of the Dockers sale on February 27. Used as essential pre-quarter context.
Levi Strauss & Co., June 24, 2026: Fiscal Q2 earnings release and conference call scheduled for July 8, 2026.

Levi Strauss