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It is not a secret that consumers have been underestimating their spending during the past few months due to fears such as inflation, high cost of living and threats that are waving on the horizon in definitions.
Amid these opposite winds, Levi ((Fibrous)) Her denim clothes, continuing to resonate well with consumers, as she recently witnessed the increase in sales and profits.
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In the profit report in the first quarter of Levy for 2025, it revealed that its net revenues in the United States increased by 8 % on an annual basis due to positive traffic and high -price sales.
Related: Levi CEO appears to be alarm bells
Levy CEO deals with a source of great concern
Despite this last success, Michel Gas, CEO of Levy, admitted during a profit call on April 7 that the company was working during a difficult period.
“Given the declaration of the tariff last week, we are dealing with a dynamic Macro’s environment,” said Jas.
Definitions are the taxes that companies pay to import goods from abroad, and the additional cost is often transferred to consumers through price increases.
On April 2, President Donald Trump announced a 10 % “baseline” tariff for all countries that import goods to the United States, where nearly 60 countries witnessed higher introductory rates, in an attempt to liberate the nation from its dependence on imported goods.
However, on April 9, Trump increased his 34 % previous tariff on China to 125 %, and stopped the mutual tariff in all other countries for 90 days, raising it to a global rate of 10 %.
Levy is considered harsh changes amid the threat of tariffs
During the call, Gass said that although customs tariffs constitute a “major challenge” for Levi’s, it has the ability to withdraw many levers, including potential price increases, to reduce the threat.
“We will work with our sellers, with our customers, to understand the best way to move forward,” Jas said. “Then pricing is a potential crane, I would like to say. As we think about it, we will think a lot about any pricing, if we take prices, very surgically.”
Related: Apple is an unexpected step to avoid high tariff costs
She also claimed that the last customer behavior may cause prices to increase.
“One of the things we saw doing consumers is that they are actually leading the price,” said Jas. ))
GASS also warned that the company may consider increasing the reduction of promotional offers and has “pricing” in the areas it sells directly to consumers.
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Levy’s latest plan to combat customs tariffs comes after Gas said during the Shoptalk event on March 26 that the company would double to make its products more innovative to attract consumer consumers.
Jas said: “It is up to us.” “If the wallet is more compact, we must work more seriously. We have to work more seriously in leading the brand’s importance. We have to make sure that every time you come to one of our stores, it is a great experience. We must continue to innovate and bring them to the new and things they cannot resist to buy.”
Gass also confirmed that Levi products have a “friendly price point”.
“There is a jeans that costs much more, there is jeans that cost less,” said Jas. “But it is a friendly price point to start.”
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