Levi Strauss & Co (LEVI) UBS Global Consumer and Retail Conference summary

Strategic growth drivers and market positioning

• Focused on brand-led, DTC-first strategy, with organic growth accelerating from flat to 7% over three years and operating margins guided to rise from over 9% in 2023 to nearly 12% in 2026.

• Transitioning from a denim-only company to a denim lifestyle brand, expanding the addressable market from $100 billion to potentially $1–1.5 trillion.

• Growth is driven by narrowing focus, exiting non-core businesses, and expanding in high-margin areas like women's, DTC, and international markets.

• DTC business now represents 50% of sales, with aspirations to reach 55–60%, and DTC EBIT margins have improved by 300 basis points.

• Growth is balanced between higher average unit retail and increased unit sales, with TAM expansion contributing a third of recent growth.

Product innovation and category expansion

• Blue Tab, a premium denim collection, is scaling up after successful tests, targeting the affordable luxury segment.

• Expansion into non-denim categories like chinos, performance tech, skirts, dresses, and tops, with tops now 20% of business and a key growth area.

• Outerwear and sweaters have seen strong demand, with a disciplined approach to new categories, maintaining a denim aesthetic and slow fashion ethos.

• Wholesale partners are increasing floor space for women's and lifestyle products, reflecting strong demand.

Brand elevation and distribution strategy

• Pruned lower-tier distribution and exited dENiZEN to elevate brand positioning, expanding Red Tab in Target stores and reducing off-price exposure.

• Closed thousands of lower-quality doors in Europe and India, focusing on quality and market share rather than rapid exits from large customers.

• Store openings are targeted globally, with 50–60 net new doors annually, focusing on profitable, women-led formats and DTC expansion.

• U.S. DTC now 45% of business, with 70% of stores leading with women's products.