Brew Markets — April 8, 2026

Episode: Levi’s Stock Zips Up with Low Rise + Gen Z & Ann in San Fran!

Host: Anne Berry (from San Francisco) with John (in New York)
Main Theme:
A deep dive into Levi Strauss & Co.'s impressive Q1 2026 earnings, the comeback of 90s-inspired denim, and the brand’s evolution to capture Gen Z and Millennial consumers — all broadcast live from the heart of Levi's country, San Francisco. The episode explores Levi’s global strategy, direct-to-consumer push, cultural drivers behind denim demand, and its deep roots in both Bay Area culture and U.S. retail history.

1. Levi’s Q1 2026 Earnings Blowout

[02:03 - 03:40]

• Historic Legacy: Levi Strauss founded in San Francisco in the 1850s, global today (3,300+ stores, 120 countries).
• Earnings Highlights:
  • Q1 net revenue: $1.7B, up 14% YoY
  • Share price up 13% on the news, 80% YoY surge
  • Revenue up across the board: Americas +9%, Europe +24%, Asia +13%
  • Adjusted EPS: $0.42 (+$0.05 over estimates)
  • Raised guidance for sales to rise up to 6.5% next quarter
• Quote—Anne Berry:
  “Shares are up 13% this morning, along with a broader rise in the markets. Shares of Levi up 80% year over year.” [02:42]

2. Tariff Relief & Financial Outlook

[03:40 - 04:42]

• Tariffs' Windfall: Current assumptions for global levies are at 20%, but the Trump administration and a Supreme Court ruling have reduced tariffs on apparel imports to 10%.
  • Potential $35 million annual earning boost if tariffs remain low
  • CFO Harmit Singh signals Levi’s could be refunded up to $80 million
• Corporate Courage: Levi’s is more direct about potential refunds compared to peers (Costco, others).
• Quote—John:
  “The CFO Harmit Singh actually dared to go where a lot of companies are fearing to tread...” [03:40]
• Quote—Anne Berry:
  “Interesting to see him put numbers around it. As we’ve heard other companies like Costco saying that they’re getting in line to try to get these refunds.” [04:42]

3. Direct-to-Consumer (DTC) Takeover & Gen Z Surge

[04:42 - 05:39]

• DTC accounted for 52% of net revenue, its first time as a majority.
• 16 consecutive quarters of DTC growth
• Levi’s own stores + website sales up 16%; e-commerce up 17%
• Massive youth engagement: 70% of new US e-com orders from Gen Z & Millennials.
• Levi’s shifts focus from wholesale (department stores) to own channels (inspired by moves from Nike).
• Quote—Anne Berry:
  “E commerce up 17% in the quarter, supported by younger engagement. 70% of new US E com orders were from Gen Z and Millennials. That's young people buying Levi's.” [05:39]

4. Brand Simplification, Premiumization, and Expansion

[06:47 - 07:55]

• Levi’s sold off the Dockers brand to focus on the core Levi’s line.
• Broadening within Levi’s:
  • Signature: Affordable
  • Red Tab: Middle market
  • Blue Tab: Premium, design-focused
• CEO Michelle Gass claims they've covered all demographics, but Anne Berry voices skepticism on brand dilution.
• Quote—Anne Berry:
  “If I buy a pair of Levi’s, I want to know that it’s that Levi’s brand that I’ve come to know that seems to last forever.” [07:01]

5. In-Store Trends: Low Rise Comeback & Design Focus

[07:55 - 08:52]

• John, reporting from a Levi’s store in San Francisco, observes premium “Blue Tab” lines—multi-shade, highly designed denim jackets.
• Low Rise Boot Cuts are back, with echoes of 1990s style. John celebrates, predicting low rise skinny jeans may soon follow.
• Levi’s leverages nostalgia and fashion cycles to fuel demand.

6. Cultural Impact: Media, Influencers & the Carolyn Bessette “Love Story” Effect

[09:18 - 10:22]

• Denim demand stoked by TV and celebrity culture:
  • Recent hit: The “Love Story” series (JFK Jr & Carolyn Bessette) triggers 25% increase in iconic 517 jean sales.
  • Organic, unpaid pop culture buzz drives real retail results.
  • Previous surges from Sydney Sweeney (American Eagle), Beyoncé (Levi’s collab after hit song “Levi’s Jeans” in 2024).
• Quote—Michelle Gass (Levi’s CEO, from earnings call):
  “Another great example of the organic strength of our core is the 25% increase in our iconic 517s which were famously worn by Carolyn Bessette and prominently featured in the popular show Love Story.” [09:51]
• Quote—John:
  “I do remember Carolyn Bassett was like the pinnacle of sort of unlike natural chic… boot cut jeans… throw out to the 90s.” [10:22]

7. China Recovery, Shareholder Returns, & Bay Area Legacy

[08:52 - 11:22]

• Levi’s business in China turns positive after rough quarters, contrasting Nike’s continued struggles there.
• Strong capital returns:
  • $214 million returned to shareholders last quarter (+160% YoY)
  • Dividends up +5%, stepped-up share buybacks
• Deep Bay Area connections: Daniel Lurie, Levi’s heir, was sworn in as San Francisco’s mayor in 2025.
• Quote—John:
  “There was a real sense of excitement that perhaps this was going to be the Mike Bloomberg of the west coast, someone who is independently wealthy... above the pressures of... corruption.” [11:47]

8. Memorable Moments & Notable Banter

• John, on denim nostalgia:
  “Low Rise is back. Which I've been waiting for forever… it's just a matter of time.” [07:55]
• Anne, on shopping habits:
  “I get my Levi’s at Macy’s… great selection, but the price was higher than I might find at a Macy’s.” [07:40]
• Pop culture callouts: The show, Beyoncé, Sydney Sweeney, and even Ed Sheeran’s upcoming Levi’s Stadium concert.
• Sassy summary of Bay Area influence:
  “Still very much making his mark... the company goes back to the 1850s and today there is real presence in San Francisco.” [11:47]

9. Timestamps for Key Segments

• 02:03 — Levi’s company background and earnings context
• 02:42 — Earnings breakdown and geographic revenue
• 03:40 — Tariff developments and potential refunds
• 04:42 — DTC strategy & Gen Z engagement
• 06:47 — Brand focus and product tiering
• 07:55 — John’s in-store experience & denim trends
• 09:18 — Media’s impact on sales, Carolyn Bessette effect
• 10:22 — Pop culture aftershocks & share buyback
• 11:47 — San Francisco, Levi’s Stadium, Daniel Lurie connection

10. Tone & Style

• Conversational, slightly cheeky, full of market-savvy pop culture references.
• Balances deep retail/finance insights with relatable fashion and consumer trends.

Executive Takeaways

• Levi’s is thriving: Q1 2026 results show robust growth, fueled by Gen Z/Millennial direct buying.
• DTC shift: For the first time, over half of sales are direct to consumer—a major channel transformation.
• Pop culture drives jeans: Nostalgia (the 90s, “Love Story,” Carolyn Bessette) and youth style cycles are meaningful drivers of actual demand.
• Strong capital returns: Levi’s is rewarding shareholders big time.
• Local to global: Brand remains rooted in San Francisco, shaping the city's leadership and culture.

This episode is a must-listen for anyone interested in the intersection of fashion, finance, Gen Z retail, and culture—all with Levi’s as the case study for reinvention.