Levi Strauss CEO on Tariffs, International Business, and Consumer Trends

Navigating Tariffs

• 🎯 Levi Strauss is competitively positioned better than most companies regarding tariffs.
• 💡 The company's strategy involves mitigating tariff impacts through various levers, resulting in a minimal net impact of approximately 20 basis points on EPS.

International Business and China Exposure

• 🌍 60% of Levi Strauss's business is international, reducing the overall impact of tariffs.
• 📉 The company has minimal exposure to China, with assumed tariffs of 30% from China and 10% from the rest of the world factored into guidance.

Mitigation Strategies

• 🤝 Levi Strauss leverages long-standing relationships with vendors and increased volume to absorb some tariff costs.
• 💰 The company is implementing modest surgical pricing and focusing on full-price selling for innovative products.
• 🛍️ Consumers are responding positively to new products, reducing the need for promotions.
• ⚖️ The team is also absorbing some of the costs internally to protect consumers and price points.