Strong international business helps deflect tariff impact
In a Thursday interview with Jim Cramer from CNBC, Levi Strauss CEO Michelle Gass has reviewed the last quarter of the clothing manufacturer and announced that the strong business abroad helps to protect the company from the effects of new US tariffs.
“Since it is related to tariffs, we are positioned better than most.” He said. “First, 60% of our business is now international.”
Gass said Denim retailer’s “tariffs” in guidance for the last quarter – 30% of China and 10% of the rest of the world. The company has long -standing relationships with the sellers, it has continued and the work has grown, Levi’s can give them more volumes.
“And then we look at our own costs, and we’re a part of it.” He said. “We do everything we can to protect the consumer and protect our price points.”
Levi sent earning After the bell on Thursday, he managed to easily defeat Wall Street’s expectations. The company also increased full year’s guidance by showing strong demand. The stocks increased by more than 7% in extended transaction.
According to Gass, Levi’s brand is called “burning” in Europe, especially among young consumers Paris, Barcelona and Milan are key markets. Gass said the brand is 170 years old and has a “incredible basis”, but it should continue to increase the level of relevance. Social media, a large part of attracting young consumers, continued and said that the company has campaigns at music festivals and sports events.
Gass, “Especially young shopping today, today, learning and discovering brands in all kinds of brands.” He said. “And we have to show where they’re interesting.”
