What is an accelerated share repurchase (ASR), and how does it differ from open-market buybacks?

An ASR is a structured transaction in which a company purchases a large block of its own shares upfront from an investment bank, which then gradually sells its own shares into the market to hedge its position. Unlike Rule 10b-18 open-market purchases, which occur gradually over time at market prices, ASRs allow a company to retire shares more quickly while the investment bank manages execution risk. Levi Strauss's $200 million ASR was launched in Q1 2026 and is expected to settle by Q3 2026.

How much cash did Levi Strauss spend on the ASR, and did it include taxes?

The company recorded a $201.0 million cash outflow for the ASR program in the first six months of 2026, which includes an excise tax. This indicates the total economic cost of the repurchase was approximately $201 million. The filing does not specify the exact share count or average price per share executed.

How much repurchase authority does Levi Strauss have remaining?

As of May 31, 2026, Levi Strauss had $240 million remaining under its current share repurchase authorization, with no expiration date. This open-ended authorization gives management ongoing flexibility to return capital to shareholders if business conditions support it.

Did Levi Strauss increase its dividend at the same time as the buyback?

Yes. In Q2 2026, the company paid a dividend of $0.14 per share (5% increase YoY) and declared a new quarterly dividend of $0.16 per share (14% increase YoY), totaling approximately $62 million and payable in August 2026. This signals management confidence in cash generation and long-term business strength alongside the capital returned via share repurchase.

What does the company say about its ability to sustain these shareholder returns?

CFO Harmit Singh stated that the dividend increase reflects "confidence in the strength of our business, our cash flow generation and our ability to create long-term shareholder value." The company raised full-year 2026 net revenue and earnings guidance, citing strong first-half results and expecting continued momentum in DTC and international markets.

When will the $200 million ASR settle?

Levi Strauss expects the $200 million ASR program, which was launched in Q1 2026, to be settled in Q3 2026. Settlement means the investment bank will have finished its hedging sales and the company will have retired the full share count under the program.

LEVI 8-K Filed 2026-07-08 Execution disclosure

Levi Strauss completed $200M accelerated repurchase program in Q2

ASR launched in Q1 2026 on track to settle in Q3; company has $240M remaining authorization with no expiration.

Remaining$240M

What the filing says

Levi Strauss & Co. reported in its second-quarter 2026 earnings filing that the $200 million accelerated share repurchase (ASR) program it launched in the first quarter is expected to be settled in the third quarter of 2026. The filing indicates the company executed the full ASR amount during the first half of fiscal 2026, as evidenced by a $201.0 million cash outflow in financing activities for the six-month period ended May 31, 2026 (including excise tax).

As of May 31, 2026, Levi Strauss had $240 million remaining under its current share repurchase authorization, which carries no expiration date. In the second quarter alone, the company returned $53.9 million to shareholders in the form of dividends at $0.14 per share, representing a 5% increase over the prior year. Additionally, the company declared a new quarterly dividend of $0.16 per share, a 14% increase year-over-year, payable in August 2026.

The ASR execution reflects management's confidence in the company's cash generation and its ability to create long-term shareholder value, as stated by Harmit Singh, Chief Financial and Growth Officer. The company raised full-year 2026 net revenue and earnings guidance alongside the buyback activity, citing strong operational performance across all geographic segments and channels.

Accelerated Share Repurchase

The $200 million accelerated share repurchase program launched in the first quarter of 2026 is expected to be settled in the third quarter. As of May 31, 2026, the company had $240 million remaining under its current share repurchase authorization, which has no expiration date. — LEVI STRAUSS & CO 8-K filing · View on SEC EDGAR →

What this means

Levi Strauss is executing opportunistic share repurchases while maintaining steady dividend growth, signaling management confidence in near-term cash flows and operational momentum. The $200 million ASR deployed in H1 2026 represents a notable capital return to shareholders alongside the company's reported 24% year-over-year increase in adjusted net income and 11% organic revenue growth. With $240 million of authorization remaining and no expiration date, the company retains flexibility to continue buybacks if market conditions and business performance remain favorable. The combination of ASR execution and a 14% dividend increase reflects a balanced shareholder-return strategy aligned with improving profitability.

Frequently asked questions

What is an accelerated share repurchase (ASR), and how does it differ from open-market buybacks?: An ASR is a structured transaction in which a company purchases a large block of its own shares upfront from an investment bank, which then gradually sells its own shares into the market to hedge its position. Unlike Rule 10b-18 open-market purchases, which occur gradually over time at market prices, ASRs allow a company to retire shares more quickly while the investment bank manages execution risk. Levi Strauss's $200 million ASR was launched in Q1 2026 and is expected to settle by Q3 2026.
How much cash did Levi Strauss spend on the ASR, and did it include taxes?: The company recorded a $201.0 million cash outflow for the ASR program in the first six months of 2026, which includes an excise tax. This indicates the total economic cost of the repurchase was approximately $201 million. The filing does not specify the exact share count or average price per share executed.
How much repurchase authority does Levi Strauss have remaining?: As of May 31, 2026, Levi Strauss had $240 million remaining under its current share repurchase authorization, with no expiration date. This open-ended authorization gives management ongoing flexibility to return capital to shareholders if business conditions support it.
Did Levi Strauss increase its dividend at the same time as the buyback?: Yes. In Q2 2026, the company paid a dividend of $0.14 per share (5% increase YoY) and declared a new quarterly dividend of $0.16 per share (14% increase YoY), totaling approximately $62 million and payable in August 2026. This signals management confidence in cash generation and long-term business strength alongside the capital returned via share repurchase.
What does the company say about its ability to sustain these shareholder returns?: CFO Harmit Singh stated that the dividend increase reflects "confidence in the strength of our business, our cash flow generation and our ability to create long-term shareholder value." The company raised full-year 2026 net revenue and earnings guidance, citing strong first-half results and expecting continued momentum in DTC and international markets.
When will the $200 million ASR settle?: Levi Strauss expects the $200 million ASR program, which was launched in Q1 2026, to be settled in Q3 2026. Settlement means the investment bank will have finished its hedging sales and the company will have retired the full share count under the program.

execution asr dividend-increase apparel-sector shareholder-returns

Source. This editorial summary is based on the SEC filing linked above. BuybackStocks aggregates and editorializes publicly available SEC EDGAR filings. Not investment advice. Past authorization announcements do not guarantee future repurchase activity or share price performance. See our full disclosures policy.