In a Wednesday interview with CNBC’s Jim Cramer, Levi Strauss CEO Michelle Gass said the popularity of “top to bottom” denim outfits is growing.
“Our new focus is, yes, continuing to own jeans, but taking that denim top to bottom,” she said. “Things like denim skirts and denim dresses — which, historically, have not been big businesses for us — I mean, they’re exploding, up triple digits in the quarter.”
The retailer posted its quarterly report on Wednesday, beating Wall Street’s expectations for earnings, but slightly missing on revenue. Shares of Levi Strauss sank nearly 13% in after hours trading.
Besides the “head-to-toe denim lifestyle,” Gass added other trends like baggier and looser items are on the rise. She said that much of this quarter’s success came from the direct-to-consumer business and the women’s category. Sales were especially strong in the U.S., she added, which is the company’s biggest market.
Gass suggested that Levi Strauss has moved past supply chain issues it faced last year at this time, saying there’s been a “step change in execution from a year ago.” She also said the company is expecting “momentum to accelerate” in the back half of the year.
“We see our consumers as being really resilient, and we’re excited about the category,” she said.