Levi Strauss & Co. (LEVI) delivered a pretty solid fourth quarter, but investors decided to focus on what's ahead instead. Shares dipped in Wednesday's after-hours session after the iconic denim maker issued fiscal 2026 guidance that came in below Wall Street's hopes.

The Quarter That Was

Levi Strauss posted earnings of 41 cents per share for the quarter, beating the Street estimate of 39 cents. Revenue came in at $1.77 billion, which topped the $1.71 billion consensus but still represented a decline from last year's $1.84 billion.

CEO Michelle Gass put a positive spin on the results, noting the company's strategic pivot. "Over the past few years, we've taken bold steps toward becoming a DTC-first, head-to-toe denim lifestyle brand," she said.

"We have narrowed our focus, improved operational execution and built greater agility across the organization. As a result, we've elevated the Levi's brand and delivered faster growth and higher profitability, as reflected by our Q4 and full year 2025 results," Gass added.

The Guidance Problem

Here's where things got tricky. Levi Strauss expects fiscal 2026 adjusted earnings between $1.40 and $1.46 per share. Analysts were looking for $1.48, so even the high end of that range falls short.

LEVI stock slipped 1.42% to $20.18 in extended trading Wednesday.