Podcast Summary: Levi Strauss CFO Harmit Singh Talks Tariffs

Podcast: Bloomberg Talks
Host(s): Bloomberg (Carol and Bailey)
Guest: Harmit Singh, Chief Financial and Growth Officer, Levi Strauss
Date: October 13, 2025

Episode Overview

This episode features Harmit Singh, CFO & Growth Officer at Levi Strauss, discussing the challenges and opportunities facing the iconic denim brand. The conversation centers on the company's recent earnings, tariff impacts, supply chain strategy, product innovation, international growth (particularly China), and long-term ambitions for market leadership amidst economic uncertainty.

Key Discussion Points and Insights

Levi Strauss Performance & Consumer Trends

[01:27 - 03:02]

• Strong Quarterly Performance:
  • Four consecutive quarters of high single-digit growth, record gross margins, and raised full-year guidance.
  • "As a company, we're a stronger and higher performing company defined by accelerated growth, expanding margins and higher return on invested capital." — Harmit Singh [01:39]
• Resilient Consumer Demand:
  • Successfully selling across premium (Blue Tab), high-income (Red Tab), and value (Signature at Walmart) segments.
  • "Consumer strength really strong. That's where we were able to raise the full year guidance. And our product pipeline hasn't been stronger." — Harmit Singh [02:27]
• International Strength:
  • High single-digit growth outside the U.S., with strong performance in Asia, Europe, and Latin America.

Tariffs, Sourcing, and Supply Chain Diversification

[03:19 - 06:51]

• Tariff Exposure and Mitigation:
  • Tariff impacts are real but largely offset through diversification and operational levers.
  • Only about 1% of imports come from China; main sourcing is diversified across 20 countries (notably Bangladesh, Pakistan, Vietnam).
  • "The way we think about our supply chain, it's fairly well diversified... we are well positioned to mitigate and offset tariffs." — Harmit Singh [04:10]
• Gross Margin Management:
  • Record gross margins in Q3 2025 despite tariffs.
  • Future (Q4) margins guided slightly down YoY, affected by tariffs, but still anticipating a record year overall.
  • "Had it not been for tariffs, we would have grown gross margins." — Harmit Singh [06:29]
• Multi-pronged Mitigation Strategies:
  • Leaning on growth in women’s, direct-to-consumer, and international businesses—all accretive to margins.

Pricing Strategy and K-shaped Recovery

[06:51 - 08:41]

• Product Segmentation by Income:
  • Pricing carefully managed, especially for Signature (Walmart/low income) lines—prioritizing innovation over price hikes.
  • “We’re leading with product innovation rather than price... We're doing what we can to maintain a price point.” — Harmit Singh [07:33]
• Product Innovation:
  • Strong pipeline: offering a mix of loose, baggy, slim, skinny, and “waist up” products (trucker jackets, linen shirts).
  • Strategic shift: "Our past was all about denim. Our future is going to be about denim lifestyle." — Harmit Singh [08:35]

Long-term Goals: $10B Sales & 15% EBIT Margin

[08:41 - 10:56]

• Progress and Recalibration:
  • Initial public goal (set 2022) was $10B sales and 15% EBIT margin by 2027—now under review amid ongoing uncertainty.
  • “We have seen a steady progress and our view is we probably get to the 15% faster than we get to the 10 billion.” — Harmit Singh [09:50]
• Current Performance:
  • 2025 expected to close at +6% organic growth and EBIT margin mid-11s, showing improvement YoY.
  • Emphasis on steady market leadership and share gains, especially as casualization drives denim demand.

China and International Expansion

[11:02 - 12:46]

• China as an Underpenetrated Market:
  • China is just 2-3% of Levi’s business; growth there has been “slow and soft” due to macro uncertainty.
  • Strong brand equity provides optimism for future double-digit growth.
  • “The Chinese consumer is fairly discerning... there is a high-end consumer as well as... the core products.” — Harmit Singh [11:40]
• Asia Strategy:
  • Targeting both premium and mid-market segments; high-end products utilize Japanese denim.

Consumer Behavior & Product Trends

[12:47 - 13:30]

• Hosts and the guest discuss personal buying habits reflecting wider consumer return to denim and lifestyle products.
• Notable for Levi’s push into lifestyle and non-denim product categories, e.g., Sherpa jackets, “blue tab” jackets.

Navigating Uncertainty and Looking Ahead

[13:30 - 14:51]

• Despite economic and geopolitical challenges, Levi’s is focused on maintaining momentum and relevance.
• Direct-to-consumer (DTC) and wholesale channels both up; key goal is delivering new, relevant products across segments and channels.
• “Our focus right now is making sure our product is on the floor...consumers gravitate to newness and gravitate to what's relevant.” — Harmit Singh [13:53]

Listener Interaction & Closing Moments

[14:51 - 15:18]

• Host Carol offers product feedback; Harmit pledges to pass it on—maintaining a humorous, personable exchange.
  • “I sincerely believe feedback is a gift... I'll take upon myself to feedback to our designers.” — Harmit Singh [15:04]

Notable Quotes

| Timestamp | Speaker | Quote | |-----------|-------------------|--------------------------------------------------------------------------------------------| | 01:39 | Harmit Singh | "As a company, we're a stronger and higher performing company defined by accelerated growth, expanding margins and higher return on invested capital." | | 04:10 | Harmit Singh | "The way we think about our supply chain, it's fairly well diversified... we are well positioned to mitigate and offset tariffs." | | 06:29 | Harmit Singh | "Had it not been for tariffs, we would have grown gross margins." | | 07:33 | Harmit Singh | “We’re leading with product innovation rather than price... We're doing what we can to maintain a price point.” | | 08:35 | Harmit Singh | "Our past was all about denim. Our future is going to be about denim lifestyle." | | 09:50 | Harmit Singh | “We have seen a steady progress and our view is we probably get to the 15% faster than we get to the 10 billion.” | | 11:40 | Harmit Singh | “The Chinese consumer is fairly discerning... there is a high-end consumer as well as... the core products.” | | 13:53 | Harmit Singh | “Our focus right now is making sure our product is on the floor...consumers gravitate to newness and gravitate to what's relevant.” | | 15:04 | Harmit Singh | “I sincerely believe feedback is a gift... I'll take upon myself to feedback to our designers.” |

Structure of the Conversation (Timestamps)

• [01:27]: Levi’s earnings and consumer outlook
• [03:19]: Tariff exposure and supply chain strategy
• [06:51]: Pricing and segmentation amid K-shaped recovery
• [08:41]: Long-range goals and progress update
• [11:02]: China market strategy and Asia expansion
• [12:47]: Denim lifestyle trends and personal anecdotes
• [13:30]: Managing uncertainty and Q4/holiday focus
• [14:51]: Light-hearted close and product feedback

Summary

Harmit Singh offers an optimistic yet grounded view of Levi Strauss’s resilience, strategic supply chain management, and innovation-driven growth. Facing tariffs, economic uncertainty, and changing fashion trends, the company’s focus on product segmentation, margin expansion, and international markets positions it to remain a leader as denim evolves into a broader lifestyle category.

For those who missed the episode:
Expect a substantive discussion with the CFO on the realities of managing a heritage global brand through tariffs, economic cycles, and evolving consumer tastes—and a few laughs about baggy jeans and Sherpa jackets along the way.