How Levi's is blending music, tech and fashion to drive growth
But according to CEO Michelle Gass, the results reflect more than a temporary boost—they validate the vision and restructuring she has led since taking the helm in 2023. Under her leadership, Levi's has made bold moves, including divesting its Denizen brand in Asia, exiting its footwear division, and selling Dockers, the iconic chinos label. The company's ' Project Fuel' transformation plan, launched in early 2024, also included a major reorganization of its regional headquarters.
These decisions align with Gass's broader ambition to turn Levi's into a global lifestyle brand rooted in denim, with a direct-to-consumer focus. 'The brand has never been stronger, and that's thanks to a combination of things,' Gass told analysts during a recent earnings call. 'We have a rich heritage, but you have to earn that relevance every day. That means showing up wherever the consumer is—on social media, in music, at cultural events, through Beyoncé or Shaboozey's wardrobe.'
The Beyoncé partnership, linked to her 'Cowboy Carter' album and tour, is a powerful example of how Levi's continues to blend culture and commerce.
'This quarter, we launched the third chapter of our 'Reiimagine' campaign with Beyoncé, recreating a classic Levi's ad from the archives,' Gass said. 'We rolled out a limited-edition product line and worked directly with her team through our House of Strauss platform to design exclusive, custom looks for her tour. Staying deeply connected to music culture remains a pillar of our marketing strategy.'
Levi's music push doesn't end there. In Europe, the brand recently partnered with Barcelona's Primavera Sound festival, launching a capsule collection and branding three performance stages. It also released a special-edition collection in tribute to the legendary British band Oasis.
Still, Gass is quick to point out that Levi's rebound isn't built on celebrity campaigns alone—particularly in Europe, where sales rose 15% year over year on a like-for-like basis. 'Last month, I visited key cities like Paris, Barcelona and Milan. I was genuinely impressed by the brand's strength in these markets—both in-store and with younger consumers. Our teams have made real improvements in how and where Levi's shows up,' she said. The group's operating margin hit 17.2% in Q2, a 210 basis-point improvement. France, the UK, Italy and Spain all posted double-digit sales growth.
Gass said she met with key franchise partners as well as retail heavyweights like Zalando and Galeries Lafayette —and sees continued potential for growth across Europe.
Another bright spot is Levi's 'tops' category, which includes T-shirts, dresses and jumpsuits. 'Last year, we restructured our tops division—and it's paying off. This category is driving our evolution from jeans-only to full lifestyle,' Gass noted. The brand also introduced a new fast-track design function to bring tops and graphic tees to market faster and respond to trends through its direct channels.
The brand is leaning into the westernwear revival, citing strong sales for subtle western-inspired silhouettes. Long, baggy shorts—a nod to the Y2K aesthetic—have also performed well. Levi's is branching out from its denim roots with fabric innovations like the 'Linen plus Denim' blend, designed for warmer climates and now used across a wider range of product categories.
These innovations support Levi's shift toward a more premium segment. The brand recently partnered with high-end label Sacai and launched its elevated Blue Tab line—moves that allow it to justify selective price increases.
Still, Levi's remains a mass-market brand at its core. Gass is focused on leveraging technology and data to refine product offerings and enhance profitability.
'We've streamlined our assortment and introduced newness with discipline,' she said. 'That's helping us drive better productivity and more full-price sales. These choices are key to maintaining our market leadership and growing the average spend per customer.'
That discipline appears to be paying off. With strong investor confidence, Levi's and its ambitious CEO are now one step closer to hitting their goals of 5% annual organic growth and 15% operating margins.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
20 hours ago
- Fashion Network
When Will Luxury's Perfect Storm Pass?
The sector is facing a perfect storm. Chinese spending, the industry's growth engine for so long, has stalled. There are question marks over whether US shoppers, who held much promise after President Donald Trump 's election in November, will pick up the bling baton. And over-aggressive pricing has shut out many younger customers who gorged on Gucci handbags and Rolex watches during the pandemic. It will take time for this indigestion to work its way out of the system. Add in the threat from tariffs and a weak dollar, which translates into less revenue in euros, and it's little wonder the MSCI Europe Textiles, Apparel and Luxury Goods Index has lost about a quarter of its value since February. The second-quarter reporting season, which starts in earnest this week, is likely to be grim. But over the past week, there have been some glimmers of hope. The worst isn't over exactly, but it might soon be. For a start, appetite among Chinese consumers for Cartier Love bangles and Burberry trench coats doesn't seem to be getting any worse. Chinese spending in Japan is contracting — with Richemont 's sales in the country down 15% in the three months to the end of June, compared with a 59% increase in the year earlier period — due to the stronger yen. This will be a drag on sales across the industry. But Swatch AG said it had seen the first signs of improvement in China, with a pickup in online sales and a reduction in stocks of watches at third party retailers. Swatch Chief Executive Officer Nick Hayek often looks on the bright side. But Richemont also saw a 7% fall in sales in China, Hong Kong and Macau in its fiscal first quarter, about half the rate of decline in the preceding three months. This was echoed by Burberry Group Plc, which generates about 30% of sales from Chinese consumers at home and abroad. Chief Financial Officer Kate Ferry said the British luxury brand was also seeing a quarter-on-quarter improvement and 'a little bit of stabilization' in China. In the US, financial markets appear to be shrugging off the tariff trauma, with the S&P 500 Index reaching a new high and Bitcoin touching a record $120,000. Given that US luxury demand is correlated with financial wealth, this bodes well. It's possible this is feeding into demand for Brunello Cucinelli SpA's cashmere already: The tech bros' favourite outfitter said sales excluding currency movements rose 11% in the second quarter, and it forecast a 10% increase this year. Investors shouldn't get ahead of themselves, though. Some of the surprises so far have been company specific. Cucinelli sells to the 1%, and while it might not have a logo, it has become a signifier that the wearer is part of an exclusive club that can afford to pay $400 for a T-shirt and $8,000 for a cable knit cardigan. Not many other brands command this type of clientele. Richemont's jewellery is also shining bright, thanks to the luxury market maturing — many who bought bags 20 years ago are shifting to baubles — and the fact that price increases for leather goods have made bangles and necklaces better value for money. As for Burberry, which reported a 1% decline in fiscal first-quarter same-store sales — less than the almost 4% fall that analysts had expected — this compares with a period a year ago when same store sales slumped 21%. LVMH, the industry bellwether, reports second-quarter earnings this week, and they won't be pretty. The behemoth has gone from being one of the strongest performers to one of the weakest, thanks to its reliance on leather goods, which are suffering the most from consumer fatigue. It is also facing some company-specific issues, such as a hard landing after spectacular growth at Dior, difficulties in its drinks division, and supply chain problems at Loro Piana, a rival to Cucinelli. Yet even though we are probably closer to the bottom of the bling bloodbath than the top, many valuations are pricing in the worst. LVMH is trading on a forward price-to-earnings ratio of about 19.5 times, toward the bottom of its five-year average, while Prada SpA shares have lost about 30% since February, as investors took fright at its €1.25 billion ($1.5 billion) purchase of Versace. While the earnings side of the equation could fall further, this looks harsh. Not all luxury stocks are showing a bust. Investors in Hermes International SCA are paying about 50 times the next 12 months' earnings because the brand typically outperforms in tough times, given that demand for its iconic Birkin and Kelly bags outstrip supply. Burberry's shares have more than doubled since September. A successful turnaround, and the company being able to keep any challenges in check, is already priced in. Kering SA stock has risen about 14% since the Gucci owner named Renault 's Luca de Meo as its new CEO last month. That looks optimistic. Even if De Meo is able to sell Kering's 30% stake in Valentino, he still has €10.5 billion of net debt and creative transitions at most of the company's brands to deal with. For investors, a return to bling's boom years still looks far off. But by the time we get to fashion month in September, conditions might look at little less grim. New designers at Chanel, Dior and Gucci are likely to delve into the archives for inspiration this fall. A brighter luxury market would be another retro trend worth embracing. Bloomberg Opinion
Fashion Network
20 hours ago
- Fashion Network
UK Second-Hand Shopping to Hit £4.8 Billion This Year, CEBR Says
Two-thirds of British consumers bought second-hand goods online last year, research shows, a figure expected to grow as shoppers rein in spending and as so-called 'pre-loved' items become more available. Purchases of used goods on the internet will reach £4.8 billion ($6.4 billion) in the UK this year, up from £4.3 billion in 2024, according to a report from the Centre for Economics and Business Research commissioned by Inc. The market is growing rapidly, with some shoppers driven by environmental concerns and others taking the opportunity to monetize their wardrobes as sellers. Households have also grown thriftier amid cost-of-living pressure. Vinted, Europe's largest online marketplace for second-hand clothes, is valued at around €5 billion ($5.8 billion) and is expanding into other segments including phones, toys, gaming consoles and, potentially, luxury watches, Chief Executive Officer Thomas Plantenga told Bloomberg late last year. The trend has implications for established retailers, which are trying not to miss out. Zara owner Inditex SA has expanded its platform to sell second-hand clothes in the US, France and Germany. Amazon has grown its selection under the banner Amazon Second Chance, selling returned items at discounts and offering 'pre-loved' fashion including Dior dresses and Gucci joggers. 'Brands that don't evolve risk leaking relevance — and revenue — to platforms that feel more aligned with where the world is heading,' retail consultant and broadcaster Mary Portas told Bloomberg. Second-hand products now account for 34% to 45% of UK consumer spending in some of the most popular categories including technology, fashion and home appliances, according to the CEBR, which surveyed 10,000 adults across Europe. The market includes used and 'open-box' items — where a product is returned unused — as well as refurbished goods, it said. Average monthly spending on pre-loved goods has more than doubled over five years in the UK, rising to £124.80 a month from £58.40, the CEBR said.
Fashion Network
20 hours ago
- Fashion Network
When Will Luxury's Perfect Storm Pass?
For a start, appetite among Chinese consumers for Cartier Love bangles and Burberry trench coats doesn't seem to be getting any worse. Chinese spending in Japan is contracting — with Richemont 's sales in the country down 15% in the three months to the end of June, compared with a 59% increase in the year earlier period — due to the stronger yen. This will be a drag on sales across the industry. But Swatch AG said it had seen the first signs of improvement in China, with a pickup in online sales and a reduction in stocks of watches at third party retailers. Swatch Chief Executive Officer Nick Hayek often looks on the bright side. But Richemont also saw a 7% fall in sales in China, Hong Kong and Macau in its fiscal first quarter, about half the rate of decline in the preceding three months. This was echoed by Burberry Group Plc, which generates about 30% of sales from Chinese consumers at home and abroad. Chief Financial Officer Kate Ferry said the British luxury brand was also seeing a quarter-on-quarter improvement and 'a little bit of stabilization' in China. In the US, financial markets appear to be shrugging off the tariff trauma, with the S&P 500 Index reaching a new high and Bitcoin touching a record $120,000. Given that US luxury demand is correlated with financial wealth, this bodes well. It's possible this is feeding into demand for Brunello Cucinelli SpA's cashmere already: The tech bros' favorite outfitter said sales excluding currency movements rose 11% in the second quarter, and it forecast a 10% increase this year. Investors shouldn't get ahead of themselves, though. Some of the surprises so far have been company specific. Cucinelli sells to the 1%, and while it might not have a logo, it has become a signifier that the wearer is part of an exclusive club that can afford to pay $400 for a T-shirt and $8,000 for a cable knit cardigan. Not many other brands command this type of clientele. Richemont's jewelry is also shining bright, thanks to the luxury market maturing — many who bought bags 20 years ago are shifting to baubles — and the fact that price increases for leather goods have made bangles and necklaces better value for money. As for Burberry, which reported a 1% decline in fiscal first-quarter same-store sales — less than the almost 4% fall that analysts had expected — this compares with a period a year ago when same store sales slumped 21%. LVMH, the industry bellwether, reports second-quarter earnings this week, and they won't be pretty. The behemoth has gone from being one of the strongest performers to one of the weakest, thanks to its reliance on leather goods, which are suffering the most from consumer fatigue. It is also facing some company-specific issues, such as a hard landing after spectacular growth at Dior, difficulties in its drinks division, and supply chain problems at Loro Piana, a rival to Cucinelli. Yet even though we are probably closer to the bottom of the bling bloodbath than the top, many valuations are pricing in the worst. LVMH is trading on a forward price-to-earnings ratio of about 19.5 times, toward the bottom of its five-year average, while Prada SpA shares have lost about 30% since February, as investors took fright at its €1.25 billion ($1.5 billion) purchase of Versace. While the earnings side of the equation could fall further, this looks harsh. Not all luxury stocks are showing a bust. Investors in Hermes International SCA are paying about 50 times the next 12 months' earnings because the brand typically outperforms in tough times, given that demand for its iconic Birkin and Kelly bags outstrip supply. Burberry's shares have more than doubled since September. A successful turnaround, and the company being able to keep any challenges in check, is already priced in. Kering SA stock has risen about 14% since the Gucci owner named Renault 's Luca de Meo as its new CEO last month. That looks optimistic. Even if De Meo is able to sell Kering's 30% stake in Valentino, he still has €10.5 billion of net debt and creative transitions at most of the company's brands to deal with. For investors, a return to bling's boom years still looks far off. But by the time we get to fashion month in September, conditions might look at little less grim. New designers at Chanel, Dior and Gucci are likely to delve into the archives for inspiration this fall. A brighter luxury market would be another retro trend worth embracing.
