By Kelly Cloonan

Levi Strauss & Co. said sales grew in the fiscal fourth quarter as its turnaround plan gained traction.

Chief Executive Michelle Gass said the results reflect the company's steps to elevate its namesake brand, doubling down on its direct-to-consumer business and narrowing its focus.

"While we still have important work ahead, the company is at an inflection point--emerging as a stronger, more resilient global business," Gass said.

The apparel company on Wednesday posted a profit of $158 million, or 40 cents a share, compared with $182.5 million, or 46 cents a share, a year earlier.

Adjusted earnings per share were 41 cents, ahead of estimates of 39 cents a share according to analysts polled by FactSet.

Revenue rose 1%, to $1.77 billion, topping analyst estimates of $1.71 billion. Organic sales, a figure that strips out acquisition, divestiture and currency effects, rose 5%.

Direct-to-consumer sales grew 8%, while wholesale revenues fell 5%.

The company said gross margin ticked down in the quarter primarily due to tariffs, partially offset by price increases.

For the 2026 fiscal year, the company guided for revenue to rise 5% to 6% and for adjusted earnings of $1.40 to $1.46 a share, including a 4 cent headwind from a higher tax rate. The guidance is based on continuing operations, which excludes Levi's Dockers business that is being sold.

Analysts had forecast revenue of $6.56 billion, or up about 4.5%, and adjusted per-share earnings of $1.48.

The forecast reflects the company's expanded addressable market, which positions it for mid-single-digit growth this year and beyond, Finance Chief Harmit Singh said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

January 28, 2026 16:12 ET (21:12 GMT)

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