'Levi's is having a powerful moment': CEO Michelle Gass

We are gaining share in the middle-income consumer, says Michelle Gass – the chief executive of Levi Strauss & Co (NYSE: LEVI)

Levi’s reports a strong Q1 and raises guidance

The denim jeans company came in ahead of expectations for Q1 and raised profit guidance for the full year last night. Discussing the earnings release on CNBC today – the chief executive added:

Levi’s has been around for close to two centuries now but CEO Gass remains convinced that it still has massive opportunity ahead in the likes of denim tops, denim skirts, and denim dresses.

$LEVI is up nearly 17% on Thursday.

Levi’s is ‘resonating’ with consumers

Levi Strauss & Co generated nearly half of its overall sales in the first quarter from direct-to-consumer.

On CNBC’s “Last Call”, CEO Michelle Gass acknowledged the DTC strength but said “wholesale continues to be a really important channel” as it helps maximise the overall reach of the Levi’s brand.

All in all, the supply chain has stabilised and the Levi’s product is “resonating” with consumers globally, she concluded.

Earlier this month, the clothing company laid off around 150 of its employees at its San Francisco headquarters. Wall Street currently has a consensus “overweight” rating on Levi’s stock that pays a dividend yield of 2.21% at writing.