We are sharpening our women's business strategy, and it's working, says Levi Strauss CEO

In a Wednesday interview with CNBC’s Jim Cramer, Levi Strauss CEO Michelle Gass said the popularity of “top-to-bottom” denim outfits is growing.

“Our new focus is, yes, continuing to own jeans, but taking that denim top to bottom,” she said. “Things like denim skirts and denim dresses — which, historically, have not been big businesses for us — I mean, they’re exploding, up triple digits in the quarter.”

The jeans maker posted its quarterly report on Wednesday, beating Wall Street’s expectations for earnings but slightly missing on revenue. Shares sank nearly 13% in extended trading.

Besides the “head-to-toe denim lifestyle,” Gass added other trends like baggier and looser items are on the rise. She said that much of this quarter’s success came from the direct-to-consumer business and the women’s category. Sales were especially strong in the U.S. — the company’s biggest market.

Gass suggested that Levi Strauss has moved past supply chain issues it faced last year at this time, saying there’s been a “step change in execution from a year ago.” She also said the company is expecting “momentum to accelerate” in the second half of the year.

“We see our consumers as being really resilient, and we’re excited about the [denim] category,” she said.

Levi Strauss CEO Michelle Gass goes one-on-one with Jim Cramer

Jim Cramer’s Guide to Investing

Source link