Michelle Gass, the CEO of Levi Straus & Co. (NYSE: LEVI), argued that partnering with Beyonce would help boost sales in particular in the women’s section, in a recent Jim Cramer interview.
Levi’s launched a new campaign on Monday featuring iconic singer Beyonce. The campaign follows the March release of her track “LEVII’s Jeans” from the album “Cowboy Carter”.
Beyonce’s partnership with Levi’s and its potential to boost sales are particularly important, given that Levi’s missed revenue expectations for the third quarter. It also lowered its guidance for full year on Wednesday.
Levi’s shares were down by nearly 10% as of the date this report was written.
Levi’s women’s collection is a priority for the company
Levi’s and “Queen Bey’s” history dates back to early 2000s.
Clothing company fully commits to increasing its business with women, which they expect will grow by at least 50% over the next few years.
Michelle Gass stated that “you bring Beyonce in the ecosystem we believe we are just set for the long-term really, really nicely.”
The chief executive of Levi’s, on Mad Money, attributed much the weakness seen in the company’s most recent reported quarter, to China, Mexico and the Dockers brand.
New York listed firm Dockers is searching for possible buyers as the company has been “underperforming for quite some time.”
She added that Levi’s has a laser focus on increasing its revenues in the fourth-quarter and sustaining it into 2025.
Do you need to buy Levi’s after earnings?
Michelle Gass, CEO of Gass International Inc. said that the internal execution problems were partly responsible for the weakness seen in China and Mexico during the quarter but the company has already taken steps to correct them.
Levi’s has reported an increase of 19% in Beyond Yoga over the past year in the third quarter, but its chief executive is still convinced it’s “a huge opportunity” and that the product’s “earnings innings” are only just beginning.
She is confident, in the end, that Levi’s will be better off in 2025. If her optimism can be trusted, buying Levi Strauss & Co. shares at today’s low prices won’t necessarily be a bad idea.
Wall Street has also given Levi stock a “overweight rating” with a price target average of $22.58. This indicates a potential gain in value greater than 15%.
The company, based in San Francisco, California, also pays out a yield on dividends of 2.69 %.
The post Beyonce can help Levi’s sell? What CEO Michelle Gass believes may change as the updates unfold
