WASHINGTON — Levi Strauss & Co.’s shift to becoming a direct-to-consumer company known for more than jeans is being supported by AI, according to CEO Michelle Gass.
“We're evolving to become a head-to-toe denim lifestyle company,” the chief executive told an audience at the Semafor World Economy event on Tuesday. “And so we are rewiring the organization to really be in service to that, all to become much more of a direct-to-consumer business.”
AI is helping the 170-year old company achieve that pivot by changing processes across the business, Gass added.
On the topic of being a brand with such heritage, Gass noted that Levi’s hasn’t strayed from its core values despite a more complex political landscape.
“I'm really proud of what the company has stood for over the decades,” she said on stage. “More recently, we have stood behind our values around diversity, we continue to support Pride, we're a big advocate for family paid leave and the list goes on.”
The company is evolving in other ways, though, including efforts to expand merchandise offerings beyond its famous jeans and into more apparel, which Gass said customers have been asking for.
“We've never been frozen in time, but we like to say we're a brand with a heritage, not a heritage brand,” she noted. “And never, even today, has the brand been so relevant to generations of fans. You know, we really operate at the center of culture.”
The CEO’s remarks come just a week after Levi Strauss & Co. reported strong first quarter earnings results. The company’s net revenues increased 14% year over year to $1.7 billion, with DTC up 16% to over $911 million and wholesale growing 12% to $831 million.
