Levi Strauss & Co (LEVI) Goldman Sachs 32nd Annual Global Retailing Conference 2025 summary

Strategic transformation and growth vision

• Pursuing a vision to reach $10 billion in revenue and 15% operating margins, focusing on higher growth, higher margin, and stronger cash flows by 2026.

• Narrowed focus by exiting low-margin businesses like Denizen, small footwear, and Dockers in the U.S. and Canada, with Dockers to be fully exited by January 2026.

• Shortened go-to-market calendar from 16 to 12-13 months and eliminated 15% of unproductive SKUs to drive efficiency.

• DTC-first strategy has increased DTC share from 40% to 50% of sales, with operating margins rising by 2-2.5 points.

• Emphasizing denim lifestyle expansion, including new western wear and premium Blue Tab offerings, to drive future growth.

Market trends and product innovation

• Denim category is valued at $100 billion globally, expected to grow mid-single digits, driven by casualization and evolving silhouettes.

• Looser, baggier fits now 15% of assortment, with slim and skinny fits still comprising 20% and growing.

• Western trend and collaborations (e.g., Shaboozey, Nike) are expanding the brand's reach.

• Non-denim now 40% of business, with growth in performance tech, chinos, and new categories like denim skirts and dresses.

• Premiumization through Blue Tab, inspired by Japanese denim, is scaling globally.

Direct-to-consumer and wholesale strategies

• DTC has delivered 13 consecutive quarters of comp sales growth, with a focus on store expansion, e-commerce, and balanced assortments.

• Women's business is underpenetrated but growing, now 50% of mainline store sales in the U.S.

• Tops business is 50% of sales, up 16% in Q2, with cross-selling opportunities driving higher units per transaction.

• Wholesale remains important, with growth shifting from department stores (now 7-8% of business) to pure play, specialty, and new distribution partners.

• DTC-first approach influences wholesale partners to adopt new products after seeing DTC success.