Good morning. Both denim and Western fashion trends are dominating popular culture this year. And Levi Strauss & Co., which has been a retail mainstay for more than a century, is doubling down on its denim strategy. That includes the company’s CFO who signed off on that strategy—and embraces it in his own wardrobe.
I recently had a video call with Harmit Singh, chief financial and growth officer at Levi’s. “The Western way is core to who we are,” Singh told me. “We are all about denim lifestyle, a head-to-toe look.” He pointed to the cowboy hat on his desk that he put on briefly. Singh was also wearing a Western denim shirt and Levi’s 517 bootcut jeans. Earlier that day, he had a meeting with investors, and dressed for the occasion to show them what’s selling, Singh said. “And I have a bunch of 501s in my closet,” he added.
Levi Strauss was founded in 1853 and introduced the riveted 501 jeans. Singh, CFO at the company since 2013, knows the ins and outs of Levi’s products and operations as it’s a big part of his job. In January 2023, he expanded his role to include growth officer. He was tasked with taking ownership of the corporate strategy as well as global retail real estate. A big focus for Singh is growing Levi’s direct-to-consumer business (DTC) via the company’s own stores and e-commerce.
In Q2, the 501 grew 16% in DTC. Its other core items like Western shirts saw particularly strong sales in women’s, up 40%. Levi’s global women’s business delivered 22% growth in DTC in Q2. The women’s business is a third of Levi’s total business, Singh said. “Our view is, there’s no reason why it shouldn’t be half our business,” he said. “We can double the women’s business over the next six or seven years while growing our men’s business.”
The 171-year-old company, led by CEO Michelle Gass, works towards taking the lead on trends in anything from skinny jeans to low-rise jeans to dad jeans to loose jeans, Singh said. Levi’s also shows up at the center of culture across music, art and design, fashion, and sports.
For example, in 2023, Levi’s had its first brand activation at the Cowboy Christmas trade show during the PRCA National Finals Rodeo, which Singh refers to as the “Super Bowl of rodeos.” Levi’s plans to have a presence again in 2024. And its recent 2024 Pride Collection was inspired by LGBTQIA+ rodeo culture from the ‘70s to today.
Levi’s also leans into star collaborations. In April, the company dressed a fair amount of artists like Tanner Adell and Dillon Francis for Stagecoach, one of the largest country musical festivals.
But there was an unexpected star endorsement earlier this year from one of the most popular artists on the planet—Beyoncé. “I’d say she is at the center of culture,” Singh commented. Her album, Cowboy Carter, released in March includes the single, “Levii’s Jeans” featuring Post Malone.
For its second quarter, Levi’s reported $1.44 billion in revenue, an 8% increase, but slightly missing Wall Street estimates. As Levi’s continues to pivot to a DTC-first company, its DTC net revenues increased 8% for the quarter, reflecting a 12% increase in the U.S. And a 7% increase in Europe. Revenues from e-commerce grew 19%, led by double-digit growth in the U.S., the company reported on June 26.
Singh has incorporated the brand into his lifestyle, even wearing a long denim jacket to an accounting for sustainability event in London. “Most of the CFOs were dressed in suits or jackets and formal trousers,” he said. He’s now also made it a family affair. “My wife and my daughter, who is a millennial, also support the brand,” Singh added.
Sheryl Estrada
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Leaderboard
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