Bloomberg Talks: Levi's CEO Michelle Gass Talks Direct-to-Consumer Strategy

Date: April 8, 2026
Host: Bloomberg
Guest: Michelle Gass, President & CEO of Levi Strauss & Co.

Episode Overview

This episode features an in-depth conversation with Michelle Gass, the President and CEO of Levi Strauss & Co., touching on the company’s strong recent performance, direct-to-consumer (DTC) growth, brand evolution, supply chain strategies, and future opportunities. Gass discusses how Levi’s is navigating the crowded denim market, leveraging high-impact cultural collaborations, diversifying products, and adapting to a challenging macroeconomic environment.

Key Discussion Points & Insights

1. Levi’s Recent Performance & Momentum

• Strong Growth: Levi Strauss & Co. reported robust quarterly results, with revenue of $1.7 billion, a 9% organic growth rate, and 14% growth on a reported basis. ("We delivered 9% organic growth, 14% on a reported basis." – Michelle Gass, [01:24])
• Investors’ Response: The stock is up more than 11% in a single session and nearly 80% over 12 months.
• Broad Momentum: Growth is observed across geographies, gender, and product categories.
• Quote:

  “We are seeing momentum across the board, which is around our strategies really picking up and accelerating.” – Michelle Gass ([01:24])

2. Brand Strength and Cultural Relevance

• Cultural Centerpiece: Levi’s positions itself “at the center of culture,” which underpins its multi-generational appeal.
• Celebrity Collaborations: Partnerships with major artists like Beyoncé, Shaboozey, and K-pop star Rosé (of BLACKPINK) amplify their reach.
• Super Bowl Campaign: The “Behind Every Original” global brand campaign launched during the Super Bowl for maximum impact.
• Cross-sector Appeal: The campaign bridges sports, fashion, music, and popular figures, appealing to a diverse audience.
• Quote:

  “This is about launching, like I said, a campaign for the year... and leans into what Levi does best, across sports, across fashion and music.” – Michelle Gass ([02:26])

3. Organic & Authentic Collaborations

• How Collabs Happen: Some partners approach Levi’s, others are sought out, and many partnerships emerge organically through trends or mutual interest. ("It's, it's, it's all of the above. It happens organically." – Michelle Gass, [04:05])
• Cultural Ripples: Moments like Harry Styles’ dancers wearing 501s at the BRITs reinforce Levi’s central position in pop culture.

4. Expanding Beyond Denim: DTC & Lifestyle Strategy

• DTC Focus: Evolving from wholesale to DTC is central to Levi’s growth, both online and through branded stores.
• From Jeans to Wardrobe: Levi’s aims to be “head to toe,” offering not just jeans, but tops, jackets, dresses, and more.
• Denim Lifestyle: Effort to increase tops penetration—“playing in the total apparel space”—supports this vision.
• Quote:

  “We want to give you the whole wardrobe. It starts with the jeans, but tops, button downs, jackets, outerwear, dresses, all through the lens of Levi's." – Michelle Gass ([04:42])

5. Navigating a Challenging Macroeconomic Environment

• Resilience: During volatility, Levi’s benefits from being a trusted, durable brand with broad product offerings at multiple price points.
• Value Proposition: Levi’s serves every segment, from value tiers (“Signature by Levi Strauss,” $20–25, sales up 16%) to premium ($200 Japanese denim).
• Quote:

  “During times like this, people...really do go to brands that they trust, that they love. We offer quality, we offer great value, we offer durability.” – Michelle Gass ([05:43])

• Innovation & Execution: The company stays nimble and seeks to address consumer needs “in the moment.”

6. Supply Chain Diversification

• Global Network: Levi’s maintains a diversified supply chain across multiple countries, which has proved valuable amid tariffs and post-pandemic disruptions.
• Supplier Relationships: Enduring, decades-long partnerships help Levi’s adapt quickly.
• Tariff Management: Current financial guidance bakes in higher tariffs; recent potential reductions are not yet factored—a possible upside of up to $35 million in EBIT.
• Production Philosophy: Despite global tensions, manufacturing will remain overseas due to industry shifts.
• Quote:

  “We have a robust, very diversified supply chain across many, many countries. We have a really strong team that is agile and responsive...” – Michelle Gass ([07:14])

7. Growth Targets and Strategic Focus

• Revenue Ambition: While not publicly committing to a specific $10 billion timeline, Gass describes an ambition for bold goals and continued consistent growth.
• Profit Progression: EBIT margin steadily increasing—from 9–10% a few years ago, to 11.5% last year, now guiding to 12%.
• Brand Focus: Recent sheds (e.g., selling Dockers) allow Levi’s to focus on core strengths and global expansion.
• Quote:

  “We are confident...The exciting thing, you have visibility, the strategies are working.” – Michelle Gass ([08:50])

8. Fashion’s Fickleness & Building for the Future

• Setting Trends: Levi’s sees itself not just following but fueling denim and apparel trends.
• Expanding Styles: Shift from just denim to lifestyle apparel diversifies risk and broadens addressable market by 15x.
• Non-Denim Growth: Already, 40% of Levi’s business is non-denim; tops business up 13% in last quarter.
• Quote:

  “This evolution to denim lifestyle...basically increases our addressable market by 15x; we're playing in that $1 trillion market in apparel.” – Michelle Gass ([10:17])

9. White Space & Global Opportunities

• Women’s Potential: Women’s is under 40% of revenue but could be at least 50% in an optimal scenario.
• Apparel Mix: Striving for a 1:1 top-to-bottom ratio (currently 2:1, previously 5:1), indicating runway for tops.
• International Expansion: US remains important, but much growth will come from global markets where Levi’s is just starting out.
• Quote:

  “Women's has a big play in the apparel market...That should be at least half our business. So we're expecting tremendous growth there.” – Michelle Gass ([11:11])

Memorable Quotes & Moments

• On Brand Authenticity:

  “Levi's operates at the center of culture and we're hitting a new stride with the brand.” – Michelle Gass ([02:26])

• On Global Appeal:

  “We had people lining out the doors to get the special collab [with Nike and Jordan].” – Michelle Gass ([03:23])

• On Growth Mindset:

  “I think it's important to have bold goals.” – Michelle Gass ([08:50])

Notable Timestamps

• [01:24] – Gass details the sources of Levi’s strong momentum and multi-dimensional growth.
• [02:26] – Discusses Super Bowl campaign, celebrity collaborations, and brand crossovers.
• [04:05] – On how cultural partnerships happen and support organic brand growth.
• [04:42] – The pivot from denim to full lifestyle apparel.
• [05:43] – Navigating macroeconomic uncertainties with brand trust and value offerings.
• [07:14] – Supply chain diversification and handling tariffs.
• [08:50] – Levi’s growth and profit goals, and executing the transformation strategy.
• [10:17] – Adapting to fast-changing fashion, building the “denim lifestyle.”
• [11:11] – The future growth potential in women’s business and international markets.

Final Takeaway

Michelle Gass positions Levi’s as a dynamic, resilient global player at the crossroads of fashion, culture, and direct consumer engagement. By doubling down on brand authenticity, pushing into lifestyle apparel, navigating global uncertainties, and targeting untapped opportunities—especially in women’s and international markets—Levi’s charts a confident path for sustained, broad-based growth.