Levi Strauss President & CEO Michelle Gass Talks Sales Outlook
Oct 3, 2024
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Michelle Gass, President & CEO of Levi Strauss, dives into the company's sales outlook amid recent market declines. She discusses strategic options for the Dockers brand and how reallocating resources could boost Levi's and Beyond Yoga. Gass highlights Levi's positive sales momentum and innovative pricing strategies. The conversation also touches on the growth potential of Beyond Yoga post-acquisition and emphasizes the importance of cultural partnerships to enhance market presence.
Levi Strauss is focused on long-term growth, aiming for $10 billion in sales while adapting to macroeconomic challenges.
The partnership with Beyoncé signifies Levi's strategy to enhance brand visibility and engagement in women's fashion and cultural relevance.
Deep dives
Levi Strauss's Growth Strategy
Levi Strauss is focused on long-term growth strategies, aiming to reach $10 billion in sales over time. Despite a recent narrowing of the revenue forecast, the company reported a 3% increase in adjusted revenue and a 5% increase in the Levi's brand. The direct-to-consumer model has shown significant strength, with e-commerce seeing nearly a 20% rise, particularly driven by women's fashion. The company believes that expanding its footprint in the women's segment, currently at a third of its business, presents a valuable opportunity for further growth.
Strategic Review of Dockers Brand
Levi Strauss is exploring strategic options for its Dockers brand, including the possibility of a sale. This move aims to refocus resources on its core Levi's brand and Beyond Yoga, which have shown promising growth. The company acknowledged underperformance in certain markets, particularly due to macroeconomic challenges and specific incidents such as a cybersecurity breach affecting its supply chain. There is a strong belief that cultivating the Levi's brand into a comprehensive denim lifestyle brand offers significant potential.
Influential Partnerships and Brand Positioning
The partnership with global icon Beyoncé highlights Levi Strauss's strategy to remain culturally relevant while reaching new audiences. This collaboration, which includes a campaign tied to her music, represents a significant step forward from past celebrity partnerships. The company aims to leverage Beyoncé's extensive influence to enhance visibility and accelerate growth in women's fashion. The initiative underscores Levi's focus on fostering a strong connection with culture and social trends to sustain brand loyalty and consumer engagement.
Levi Strauss CEO Michelle Gass discusses the company's sales outlook after shares declined across markets. She is joined by Bloomberg's Katie Greifeld, Sonali Basak, and Matt Miller.