Levi Strauss CEO Michelle Gass says any worth hikes associated to tariffs can be ‘surgical’

Levi Strauss & Co. CEO Michelle Gass mentioned that any worth hikes the corporate makes resulting from President Donald Trump’s tariffs can be “surgical.”

Gass, on an earnings name Monday, advised analysts that the state of affairs round tariffs is “very new” and “fluid” and that the corporate is simply “getting our arms round it.” 

She stopped wanting specifying what these worth will increase would appear like, saying “as we take a look at pricing, we do consider that the model, particularly given the well being of the model, that there’s pricing energy there. But when we do something, it is going to be very surgical,” Gass mentioned throughout the name.

Gass took over the helm in 2024 because the struggling retailer introduced a multiyear international productiveness initiative to show across the enterprise and increase profitability.

Below the initiative, known as Mission Gas, the retailer plans to optimize its working mannequin and construction, redesign enterprise processes and determine alternatives to cut back prices whereas simplifying processes throughout the group. It has since laid off dozens of staff out of its California workplace, and warned that extra may come.

With tariffs including to its woes, Gass advised analysts Monday that the corporate has assembled a process drive to evaluate “the varied situations and figuring out what levers now we have to mitigate,” which may embody “structural adjustments.” 

The corporate sources from 28 international locations, 20 of that are imported into the U.S. Nonetheless, Gass mentioned the corporate’s provide chain “is extra agile at present than it ever has been” and that it “pivots” on a regular basis. 

“We’ll proceed to take action as we glance to handle the problems each within the quick, medium and long-term,” Gass mentioned.  

Enterprise executives have warned of the potential impression tariffs may have on the U.S. financial system.

BlackRock CEO Larry Fink mentioned on Monday that the inventory market may see declines deepen resulting from uncertainty over Trump’s tariffs and that CEOs are telling him they suppose the U.S. financial system is probably going already in a recession.

Additionally on Monday, JPMorgan Chase CEO Jamie Dimon advised shareholders that the levies are more likely to “improve inflation” on each overseas and home items, and raised considerations over what their impression can be on America’s financial alliances.