1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,840 --> 00:00:11,360 Speaker 2: All right, folks, Levi's strausshers. They are trading slightly lower 3 00:00:11,440 --> 00:00:14,240 Speaker 2: today after dropping as much as fourteen percent on Friday. 4 00:00:14,280 --> 00:00:17,119 Speaker 2: This is after the company's upgraded earnings guide and still 5 00:00:17,120 --> 00:00:20,840 Speaker 2: fell short of hire investor expectations, following the stocks more 6 00:00:20,880 --> 00:00:24,000 Speaker 2: than forty percent rally heading into that earnings print. Now. 7 00:00:24,040 --> 00:00:26,960 Speaker 2: One key disappointment, at least according to analysts out on 8 00:00:26,960 --> 00:00:29,920 Speaker 2: the street, is earnings growth failing to match the pace 9 00:00:29,920 --> 00:00:33,280 Speaker 2: of sales expansion due to tariff and distribution costs. Me time, 10 00:00:33,479 --> 00:00:36,000 Speaker 2: gotta say, Bailey, you did have td cow and raising 11 00:00:36,000 --> 00:00:38,360 Speaker 2: its price target on the stock to twenty six from 12 00:00:38,400 --> 00:00:40,360 Speaker 2: twenty two a share, and they've got their by rating. 13 00:00:40,200 --> 00:00:43,400 Speaker 1: Yeah, staying bullish. And you look at the street thirteen analysts, 14 00:00:43,400 --> 00:00:45,360 Speaker 1: ten of them buys. So is it a sell the 15 00:00:45,360 --> 00:00:46,720 Speaker 1: news event? Price to perfection? 16 00:00:47,720 --> 00:00:49,559 Speaker 2: We see it's a really good part. So let's see 17 00:00:49,600 --> 00:00:52,479 Speaker 2: what one of the companies members of the C suite 18 00:00:52,520 --> 00:00:54,760 Speaker 2: have to say. Harmit Singh is with us, chief financial 19 00:00:54,800 --> 00:00:56,840 Speaker 2: and growth officer at Levi Stras. He joins us from 20 00:00:56,840 --> 00:00:59,720 Speaker 2: our San Francisco bureau. Harmy, it's so good to have 21 00:00:59,760 --> 00:01:02,480 Speaker 2: you here here with us. How are you and how 22 00:01:02,680 --> 00:01:05,479 Speaker 2: is the consumer doing well? 23 00:01:05,520 --> 00:01:08,200 Speaker 3: Thanks for having me, Carol and Billy, it's great to 24 00:01:08,240 --> 00:01:11,919 Speaker 3: be here again. You know, we had a real strong 25 00:01:12,040 --> 00:01:16,520 Speaker 3: quarder for consecutive quarters of high single digit growth and 26 00:01:16,800 --> 00:01:19,920 Speaker 3: record gross margins, as well as the fact that we 27 00:01:19,920 --> 00:01:23,280 Speaker 3: were able to raise up fully of guidance as well 28 00:01:23,319 --> 00:01:29,360 Speaker 3: as gross margin and EPs expectations. Overall, as a company, 29 00:01:29,560 --> 00:01:34,160 Speaker 3: we're a stronger and a higher performing company defined by 30 00:01:34,200 --> 00:01:38,680 Speaker 3: accelerated growth, expanding margins, and higher return on invested capital. 31 00:01:38,680 --> 00:01:42,880 Speaker 3: To your question about the consumer, the consumer is largely 32 00:01:43,000 --> 00:01:47,000 Speaker 3: being resilient. You know, our products are really well segmented. 33 00:01:47,840 --> 00:01:50,040 Speaker 3: You know, we have Blue Tap, which we which is 34 00:01:50,280 --> 00:01:54,520 Speaker 3: our premium high pinnacle product and that's doing well. We've 35 00:01:54,520 --> 00:01:57,840 Speaker 3: introduced that in the US, so far, so good. We 36 00:01:57,920 --> 00:02:02,680 Speaker 3: have a Redtap product that is basically marketed to consumers 37 00:02:02,920 --> 00:02:06,600 Speaker 3: who earn between one hundred thousand and over and that's, 38 00:02:06,640 --> 00:02:08,800 Speaker 3: you know, based on our results, really done well. And 39 00:02:08,840 --> 00:02:12,520 Speaker 3: then we have you know, a signature product sold through 40 00:02:12,720 --> 00:02:16,360 Speaker 3: Walmart that again had a banner QURDA and that's for 41 00:02:16,720 --> 00:02:20,600 Speaker 3: you know, a lower income consumer. So consumer strength really strong. 42 00:02:21,120 --> 00:02:23,520 Speaker 3: That's where we were able to raise the fully guidance 43 00:02:23,520 --> 00:02:26,600 Speaker 3: and our product pipeline hasn't been stronger now if you 44 00:02:26,639 --> 00:02:30,520 Speaker 3: go outside the US and international business was up in 45 00:02:30,560 --> 00:02:33,760 Speaker 3: the high signal digit and so Asia had a strong quarder, 46 00:02:33,840 --> 00:02:37,960 Speaker 3: consumers strong. Europe had a decent quarda consumer in a 47 00:02:37,960 --> 00:02:40,040 Speaker 3: better place than so is Latin America. 48 00:02:40,080 --> 00:02:41,359 Speaker 2: Well, I'm just going to lay it after you. I 49 00:02:41,360 --> 00:02:43,760 Speaker 2: think I bought my first pair of Levi's in a 50 00:02:43,800 --> 00:02:46,000 Speaker 2: long time, just a couple of months ago. My daughter, 51 00:02:46,000 --> 00:02:48,440 Speaker 2: who's twenty two, so much younger than me, has been 52 00:02:48,440 --> 00:02:51,440 Speaker 2: buying Levi's for a while. So Bailly, I mean they're back. 53 00:02:51,480 --> 00:02:54,960 Speaker 2: I go into the store in downtown in the village 54 00:02:54,960 --> 00:02:56,320 Speaker 2: and yeah, it's packed. 55 00:02:56,440 --> 00:02:59,160 Speaker 1: Well, you get a partnership with Beyonce. All the marketing 56 00:02:59,240 --> 00:03:01,799 Speaker 1: you guys are spent in terms of targeting both young 57 00:03:01,840 --> 00:03:04,920 Speaker 1: and older generations. But Harmie, I want to ask about tariffs. 58 00:03:05,040 --> 00:03:09,560 Speaker 1: So Levi expects tariffs from China about thirty percent, but 59 00:03:09,680 --> 00:03:12,360 Speaker 1: increase expectations of twenty percent from the rest of the world. 60 00:03:12,520 --> 00:03:16,080 Speaker 1: Where are you sourcing your genes materials? Is it more 61 00:03:16,400 --> 00:03:19,080 Speaker 1: are you more exposed to that doubling in terms of 62 00:03:19,320 --> 00:03:22,520 Speaker 1: are you getting materials from Vietnam in place of China. 63 00:03:23,480 --> 00:03:27,520 Speaker 3: Yeah, so, or we're taking a holistic approach as we 64 00:03:27,560 --> 00:03:31,400 Speaker 3: are able to offset the tariff impact. You know, as 65 00:03:31,400 --> 00:03:33,440 Speaker 3: you think about this year, we raise guidance in the 66 00:03:33,440 --> 00:03:36,280 Speaker 3: top line and the bottom line and gross margin. So 67 00:03:36,600 --> 00:03:40,240 Speaker 3: you know we've been able to withstand that your specific question, Bailey, 68 00:03:41,440 --> 00:03:46,320 Speaker 3: we source about one percent we import into the US 69 00:03:46,360 --> 00:03:49,960 Speaker 3: from China, a little over a percent from India most 70 00:03:50,000 --> 00:03:53,960 Speaker 3: of and Vietnam is in the mid to high single digits. 71 00:03:54,000 --> 00:03:57,240 Speaker 3: So most of our imports are from the Southeast Asian 72 00:03:57,400 --> 00:04:04,160 Speaker 3: countries think Bangladesh, think Pakistan and the rest of Asia. 73 00:04:04,680 --> 00:04:07,920 Speaker 3: The way we think about our supply chain, it's fairly 74 00:04:07,960 --> 00:04:12,840 Speaker 3: well diversified. We import from about twenty countries into the US. 75 00:04:12,920 --> 00:04:16,320 Speaker 3: Sixty percent of our businesses outside the US, and so 76 00:04:16,800 --> 00:04:21,000 Speaker 3: we're well positioned to mitigate and offset tariffs. And the 77 00:04:21,040 --> 00:04:24,320 Speaker 3: way we are thinking about the holistic approach, given that 78 00:04:24,520 --> 00:04:27,960 Speaker 3: volume is driving a big piece of our you know, 79 00:04:28,240 --> 00:04:34,040 Speaker 3: revenue momentum, and we have tenured vendor relationships. We're working 80 00:04:34,080 --> 00:04:38,839 Speaker 3: with our vendors. We're looking at different cost efficiencies across 81 00:04:38,880 --> 00:04:42,719 Speaker 3: our organization as well as you know, being very thoughtful 82 00:04:42,760 --> 00:04:43,479 Speaker 3: about pricing. 83 00:04:43,839 --> 00:04:45,760 Speaker 2: So let me just ask you though you guys, did 84 00:04:45,880 --> 00:04:48,520 Speaker 2: you know you mentioned you raised your full your outlook, 85 00:04:48,960 --> 00:04:53,000 Speaker 2: you did warrant that tariffs are starting to bite profitability 86 00:04:53,040 --> 00:04:54,480 Speaker 2: to measure by gross margins improves. 87 00:04:54,520 --> 00:04:55,000 Speaker 1: So these are. 88 00:04:54,920 --> 00:04:57,960 Speaker 2: The good stuff, but again that tariffs are starting to 89 00:04:57,960 --> 00:05:01,560 Speaker 2: bite HARMI can you tell us what that means? What 90 00:05:01,720 --> 00:05:02,760 Speaker 2: the bite of tariffs? 91 00:05:03,600 --> 00:05:04,960 Speaker 1: When? When? 92 00:05:05,240 --> 00:05:07,680 Speaker 2: How much you know any color around that? 93 00:05:08,560 --> 00:05:11,240 Speaker 3: Sure? So you know overall, you know, we were able 94 00:05:11,279 --> 00:05:16,039 Speaker 3: to raise top line and bottom line guidance despite absorbing tariffs, 95 00:05:16,080 --> 00:05:19,240 Speaker 3: and so we are able to mitigate it. To the 96 00:05:19,320 --> 00:05:24,040 Speaker 3: question about tariffs, uh, you know, tariffs will introduced on 97 00:05:24,160 --> 00:05:27,640 Speaker 3: Liberation Day. We normally buy our products you know, six 98 00:05:27,680 --> 00:05:31,200 Speaker 3: months in advance, and so you know we are working 99 00:05:31,360 --> 00:05:35,719 Speaker 3: through you know, our efforts and we've got different leavers, 100 00:05:36,200 --> 00:05:38,960 Speaker 3: uh to kind of position its who you take. Quarter three, 101 00:05:39,000 --> 00:05:43,479 Speaker 3: the the Quarterbach has reported gross margins are record. So 102 00:05:43,480 --> 00:05:45,840 Speaker 3: we're able to offset tariffs because we've got other things 103 00:05:45,880 --> 00:05:49,120 Speaker 3: working for us, you know, as we grow our women's business, 104 00:05:49,560 --> 00:05:53,960 Speaker 3: our direct to consumer business and international all of which 105 00:05:54,080 --> 00:05:57,560 Speaker 3: are a creative to gross margins and allow us to 106 00:05:58,080 --> 00:06:01,880 Speaker 3: you know, mitigate and offset some of the tariff exposure 107 00:06:02,400 --> 00:06:05,359 Speaker 3: a cord of four. We did guide gross margins to 108 00:06:05,440 --> 00:06:08,320 Speaker 3: be slightly down versus a year ago, and had it 109 00:06:08,360 --> 00:06:11,360 Speaker 3: not been for tatiffs, you know, we'd have grown gross margins. 110 00:06:11,400 --> 00:06:15,000 Speaker 3: But overall, as we think about the year, we'll report 111 00:06:15,120 --> 00:06:18,480 Speaker 3: again another year of record gross margins. So we're working 112 00:06:18,520 --> 00:06:21,600 Speaker 3: on leavers for twenty twenty six. The good news is 113 00:06:21,640 --> 00:06:24,479 Speaker 3: we'll end the year stronger and we believe a well 114 00:06:24,560 --> 00:06:28,679 Speaker 3: position to have another strong year in twenty twenty six. 115 00:06:28,880 --> 00:06:31,080 Speaker 1: And Kara, we've talked with a good friend Peter Atwater 116 00:06:31,120 --> 00:06:33,720 Speaker 1: for quite some time about that key shaped recovery where 117 00:06:33,880 --> 00:06:36,440 Speaker 1: people who are well off are doing much better than 118 00:06:36,440 --> 00:06:40,600 Speaker 1: those really in the bottom quintile Harmie. When you look 119 00:06:40,640 --> 00:06:42,880 Speaker 1: at your goods, when you look at the ability to 120 00:06:43,040 --> 00:06:46,240 Speaker 1: raise prices from the impact of tariffs, which products are 121 00:06:46,240 --> 00:06:49,560 Speaker 1: you able to more easily raise prices where you aren't 122 00:06:49,560 --> 00:06:51,680 Speaker 1: going to see consumers push away? And how are you 123 00:06:51,720 --> 00:06:54,159 Speaker 1: thinking about that strategy as it relates to say, the 124 00:06:54,440 --> 00:06:56,560 Speaker 1: genes that you do sell through a Walmart where you 125 00:06:56,600 --> 00:06:59,160 Speaker 1: don't have that gross margin going direct to consumer, and 126 00:06:59,200 --> 00:07:01,600 Speaker 1: you do have likely at least when we look at 127 00:07:01,600 --> 00:07:04,239 Speaker 1: the data consumer who's feeling the pinch of inflation. 128 00:07:04,320 --> 00:07:07,839 Speaker 3: Broadly speaking, Yeah, and so the first thing barely to 129 00:07:07,880 --> 00:07:12,080 Speaker 3: your question is our products are well segmented depending on 130 00:07:12,360 --> 00:07:16,240 Speaker 3: the income profile of different consumers. I talk blue tab, 131 00:07:16,480 --> 00:07:22,160 Speaker 3: red tab, and signature Signature is what's sold into the 132 00:07:22,680 --> 00:07:26,600 Speaker 3: lower income consumer. We've been very thoughtful about pricing. We're 133 00:07:26,680 --> 00:07:30,360 Speaker 3: leading with product innovation rather than price, and so we're 134 00:07:30,360 --> 00:07:33,640 Speaker 3: doing what we can to maintain a price point. It 135 00:07:33,720 --> 00:07:36,720 Speaker 3: is evident in quarter three Signature, for example, I think 136 00:07:36,800 --> 00:07:38,880 Speaker 3: is up in the load double digits for the year. 137 00:07:39,400 --> 00:07:43,080 Speaker 3: As we think about, you know, our other products. The 138 00:07:43,160 --> 00:07:46,360 Speaker 3: good news for us is our product pipeline has never 139 00:07:46,400 --> 00:07:49,880 Speaker 3: been stronger. You know, we're leading with loose and baggy 140 00:07:50,160 --> 00:07:52,360 Speaker 3: while at the same time selling a lot of slim 141 00:07:52,440 --> 00:07:56,320 Speaker 3: and skinny both for him and her. You know, we've 142 00:07:56,320 --> 00:08:01,200 Speaker 3: got wonderful you know, waste up products, think trucker jackets, 143 00:08:01,240 --> 00:08:04,880 Speaker 3: think linen shirts, et cetera, et cetera. And so as 144 00:08:04,920 --> 00:08:09,120 Speaker 3: a company, we're making this pivot to be more of 145 00:08:09,160 --> 00:08:13,760 Speaker 3: a denim lifestyle retailer going forward. Our past was all 146 00:08:13,760 --> 00:08:18,160 Speaker 3: about denim. Our future is going to be about denim lifestyle. 147 00:08:18,880 --> 00:08:20,120 Speaker 2: I just want to know, do you really have a 148 00:08:20,120 --> 00:08:22,720 Speaker 2: pair of baggy barrel jeans. I can't get my head 149 00:08:22,720 --> 00:08:24,840 Speaker 2: around them. I'm trying, I'm trying. I'm just I. 150 00:08:24,800 --> 00:08:25,320 Speaker 3: Haven't done it. 151 00:08:25,360 --> 00:08:28,040 Speaker 2: I haven't done it, Armie. What I do want to 152 00:08:28,040 --> 00:08:30,240 Speaker 2: ask you to is you guys have had kind of 153 00:08:30,280 --> 00:08:32,200 Speaker 2: a mission, a goal to get to ten billion in 154 00:08:32,240 --> 00:08:34,160 Speaker 2: sales by twenty twenty seven. I think you may have 155 00:08:34,280 --> 00:08:36,520 Speaker 2: adjusted a little bit. I think also a fifteen percent 156 00:08:36,559 --> 00:08:39,760 Speaker 2: EBIT margin. Could you reach fifteen percent in the next 157 00:08:39,760 --> 00:08:42,520 Speaker 2: few years even if sales have not hit that ten billion, 158 00:08:42,720 --> 00:08:45,040 Speaker 2: you know, talk to us little bit about that mission. 159 00:08:45,800 --> 00:08:48,840 Speaker 3: Yeah. No, you know, we gave out the expectation of 160 00:08:48,920 --> 00:08:52,920 Speaker 3: ten billion and fifteen percent on I invested Day in 161 00:08:52,920 --> 00:08:56,640 Speaker 3: the middle of June twenty twenty two. Since then, you know, 162 00:08:57,320 --> 00:08:59,760 Speaker 3: there's been a lot of change and a lot of 163 00:08:59,800 --> 00:09:03,440 Speaker 3: un certainty. As a company, we've kind of, you know, 164 00:09:03,720 --> 00:09:07,240 Speaker 3: navigated our way through uncertainty. We haven't given a new 165 00:09:07,320 --> 00:09:09,839 Speaker 3: date on the ten billion and the twenty and the 166 00:09:10,400 --> 00:09:15,160 Speaker 3: fifteen percent. Our thinking is we'll probably do that sometime 167 00:09:15,320 --> 00:09:19,400 Speaker 3: next year. But your question, the company that we are 168 00:09:20,080 --> 00:09:23,760 Speaker 3: building and the company that has got the foundation, given 169 00:09:23,800 --> 00:09:26,959 Speaker 3: where we're ending this year, so you take twenty twenty five, 170 00:09:27,000 --> 00:09:30,200 Speaker 3: we'll end about six percent organic growth. Last year it 171 00:09:30,360 --> 00:09:33,080 Speaker 3: was three percent. The year before that it was flat. 172 00:09:33,960 --> 00:09:36,720 Speaker 3: If we're thinking EBIT margins, this year, we'll end about 173 00:09:36,800 --> 00:09:39,679 Speaker 3: mid levens. Last year it was in the mid tents. 174 00:09:39,720 --> 00:09:41,720 Speaker 3: The previous year it was about nine. So we've seen 175 00:09:41,720 --> 00:09:45,240 Speaker 3: a steady progress and our view is we probably get 176 00:09:45,280 --> 00:09:47,680 Speaker 3: to the fifteen percent faster than we get to the 177 00:09:47,720 --> 00:09:54,920 Speaker 3: ten billion. But really a company that is steadily delivering 178 00:09:55,000 --> 00:09:59,240 Speaker 3: mid single digit growth in a category that probably grows 179 00:09:59,280 --> 00:10:02,360 Speaker 3: a little, you know, south of that. So our view 180 00:10:02,559 --> 00:10:05,600 Speaker 3: is that we will. We are market leaders now in 181 00:10:05,640 --> 00:10:08,480 Speaker 3: the US, number one in men's, number one in women's, 182 00:10:08,840 --> 00:10:11,440 Speaker 3: and rarely resonating with the youth. And so the question 183 00:10:11,640 --> 00:10:16,000 Speaker 3: is if you're able to stay at you know, and 184 00:10:17,040 --> 00:10:20,120 Speaker 3: implement our strategies our views, we can continue to be 185 00:10:20,120 --> 00:10:22,240 Speaker 3: a market leader and probably pick up a little bit 186 00:10:22,240 --> 00:10:26,840 Speaker 3: of share, especially because the denim category is accelerating. We've 187 00:10:26,840 --> 00:10:29,640 Speaker 3: seen the acceleration in the US, we've seen the acceleration 188 00:10:30,160 --> 00:10:33,559 Speaker 3: outside and that's largely driven by the world becoming more casual. 189 00:10:33,760 --> 00:10:35,559 Speaker 2: Yeah, I have more genes in my wardrobe than I've 190 00:10:35,559 --> 00:10:38,040 Speaker 2: ever had in like since high school. Like it's really 191 00:10:38,120 --> 00:10:40,480 Speaker 2: kind of wild. Anyway, Billy and I can get another question. 192 00:10:40,559 --> 00:10:43,319 Speaker 1: I was just gonna ask in terms of geographic expansion. 193 00:10:43,840 --> 00:10:46,480 Speaker 1: When you think about China, what's going on with China 194 00:10:46,520 --> 00:10:49,880 Speaker 1: and also what products do the Chinese consumers want? Is 195 00:10:49,920 --> 00:10:52,080 Speaker 1: it that high end good or is it more of 196 00:10:52,120 --> 00:10:53,360 Speaker 1: a bargain purchase. 197 00:10:54,080 --> 00:10:59,640 Speaker 3: Yeah, so China for US is still underpenetrated. China represents 198 00:10:59,679 --> 00:11:03,080 Speaker 3: about two or three percent of our business. You know, 199 00:11:03,200 --> 00:11:06,160 Speaker 3: our business in China has been slow and soft. The 200 00:11:06,280 --> 00:11:11,200 Speaker 3: Chinese consumer right now is going through a bit of 201 00:11:11,240 --> 00:11:16,600 Speaker 3: a macro on certain climate. But the good news for 202 00:11:16,720 --> 00:11:20,880 Speaker 3: us is they love the brand. Our brand equity scores 203 00:11:20,880 --> 00:11:24,040 Speaker 3: are really solid. We think China can be, you know, 204 00:11:24,960 --> 00:11:27,920 Speaker 3: a business that grows double digit over the long term. 205 00:11:27,920 --> 00:11:32,439 Speaker 3: But your specific question, the Chinese consumer is fairly discerning 206 00:11:32,520 --> 00:11:36,079 Speaker 3: on the brands he or she gravitated to. There is 207 00:11:36,120 --> 00:11:39,920 Speaker 3: a high end consumer as well as a consumer that 208 00:11:40,040 --> 00:11:44,040 Speaker 3: lies the mid market consumer, what we call the coproducts. 209 00:11:44,080 --> 00:11:47,080 Speaker 3: So if we think about our Asia strategy, we really 210 00:11:47,800 --> 00:11:51,520 Speaker 3: you know, our products are relevant for the mid market consumer, 211 00:11:52,480 --> 00:11:56,960 Speaker 3: while we also offer products for the higher premium end consumer. 212 00:11:57,320 --> 00:12:01,959 Speaker 3: Thirty percent of the Asian denim category is premium. Uh 213 00:12:02,040 --> 00:12:05,960 Speaker 3: and you know premium. For example, a high Spinnacle product 214 00:12:06,360 --> 00:12:10,360 Speaker 3: is largely Japanese uh uh, you know, fabric Japanese denim 215 00:12:10,760 --> 00:12:15,560 Speaker 3: and inspired by Selvision. So that's what we are selling. 216 00:12:15,880 --> 00:12:19,200 Speaker 3: And I think over time we'll be able to start 217 00:12:19,240 --> 00:12:23,520 Speaker 3: growing a China business back in in the load double digit. 218 00:12:23,360 --> 00:12:25,960 Speaker 1: Rainy interesting seth, I will say, Carol, I know you 219 00:12:26,000 --> 00:12:28,400 Speaker 1: mentioned you have more jeans than ever. I have been 220 00:12:28,480 --> 00:12:31,560 Speaker 1: buying the Sherpa jackets, the denim jackets like crazy. I 221 00:12:31,559 --> 00:12:34,120 Speaker 1: don't know why. I have three of them in different colors. 222 00:12:34,120 --> 00:12:35,440 Speaker 2: I've brought a bunch of denim jackets. 223 00:12:35,440 --> 00:12:37,240 Speaker 1: That's what I'm in. I'm like, I don't wear jeans, 224 00:12:37,240 --> 00:12:39,840 Speaker 1: I wear chinos, but I wear the denim jackets like crazy. 225 00:12:39,920 --> 00:12:40,960 Speaker 2: I know, I just I don't know. 226 00:12:41,040 --> 00:12:41,400 Speaker 1: I love it. 227 00:12:41,400 --> 00:12:45,640 Speaker 3: I love it. Ebody. I works every morning. Yeah, and 228 00:12:45,720 --> 00:12:48,800 Speaker 3: Bailey and Carol. Now we've got the blue tab. It's 229 00:12:49,240 --> 00:12:52,199 Speaker 3: it's it's a full of jacket. You can definitely wear 230 00:12:52,520 --> 00:12:55,800 Speaker 3: two off it depending on the on the on the 231 00:12:56,040 --> 00:13:00,400 Speaker 3: uh you know, uh. Dress environment at Bloomberg walked in 232 00:13:00,440 --> 00:13:03,520 Speaker 3: here fairly casual, so you know it's something that we 233 00:13:03,559 --> 00:13:06,880 Speaker 3: are not bringing to offer. We should make your wardrobe 234 00:13:06,880 --> 00:13:07,880 Speaker 3: at some stage. 235 00:13:08,400 --> 00:13:11,840 Speaker 2: Hey, one last question, does it feel like God HAMI 236 00:13:12,040 --> 00:13:15,000 Speaker 2: the It's been a crazy year and a lot of 237 00:13:15,000 --> 00:13:17,760 Speaker 2: stuff coming at everybody, investors, the world at large. Does 238 00:13:17,760 --> 00:13:19,520 Speaker 2: it feel like things are starting to calm down on 239 00:13:19,559 --> 00:13:22,959 Speaker 2: a day when we've talked about what seems like progress 240 00:13:23,000 --> 00:13:26,079 Speaker 2: in a ceasefire between Israel and Hamas. 241 00:13:26,640 --> 00:13:30,000 Speaker 3: Yeah, you know, as I mentioned earlier, you know, we 242 00:13:30,080 --> 00:13:34,720 Speaker 3: have lived through uncertainty. You know, the good news for 243 00:13:34,840 --> 00:13:40,239 Speaker 3: us is the category strong. We have real business momentum, 244 00:13:40,720 --> 00:13:43,640 Speaker 3: The brand's never been stronger, and we have a product 245 00:13:43,720 --> 00:13:48,360 Speaker 3: pipeline that has never been full, especially as we head 246 00:13:48,360 --> 00:13:52,440 Speaker 3: towards holiday. You know, our focus right now is making 247 00:13:52,440 --> 00:13:55,520 Speaker 3: sure a product is on the on the floor. Because 248 00:13:55,520 --> 00:13:59,640 Speaker 3: of what we have seen Carol is consumers gravitate to 249 00:13:59,840 --> 00:14:05,160 Speaker 3: new and gravitate toward's relevant and you know, and you know, 250 00:14:05,920 --> 00:14:08,920 Speaker 3: our view is if we can offer the right product 251 00:14:09,320 --> 00:14:12,120 Speaker 3: and build a brand experience. And that's why we've got 252 00:14:12,520 --> 00:14:16,760 Speaker 3: real focus on our direct to consumer business while complementing 253 00:14:16,760 --> 00:14:19,800 Speaker 3: growth with our wholesale business. So this quarder, you know, 254 00:14:19,880 --> 00:14:23,000 Speaker 3: both DDC and wholesale was up. We had in the 255 00:14:23,160 --> 00:14:27,720 Speaker 3: US five consecutive quarders of high growth, and it's fueled 256 00:14:27,720 --> 00:14:28,760 Speaker 3: by both the channels. 257 00:14:28,880 --> 00:14:30,840 Speaker 2: All right, O, Harmie, when you talk with your design team, 258 00:14:30,880 --> 00:14:33,800 Speaker 2: I like high waist buttons, kind of slim through the 259 00:14:33,880 --> 00:14:35,640 Speaker 2: legs and then a little flare. I'm just gonna put 260 00:14:35,680 --> 00:14:37,280 Speaker 2: it out there, a little stretch in there too. It's 261 00:14:37,360 --> 00:14:41,280 Speaker 2: kind of my favorite, my favorite, my favorite, you were, Jeb, 262 00:14:41,520 --> 00:14:41,840 Speaker 2: thank you. 263 00:14:41,960 --> 00:14:44,680 Speaker 3: Yeah. And I'll take that feedback, Karen. I know, I 264 00:14:45,240 --> 00:14:49,480 Speaker 3: sincerely believe feedback is a is a gift, and getting 265 00:14:49,560 --> 00:14:53,080 Speaker 3: feedback from consumers like yourself is something that I'll take 266 00:14:53,160 --> 00:14:55,840 Speaker 3: upon myself to feedback to our designers. 267 00:14:55,840 --> 00:14:57,480 Speaker 2: All right, I'm going to hold you to it. All right, 268 00:14:57,560 --> 00:14:59,440 Speaker 2: good stuff, Armie, thank you so much for me, It's 269 00:14:59,440 --> 00:15:02,160 Speaker 2: saying Chief Antal and Growth Officer Vert Levi Strauss, joining 270 00:15:02,240 --> 00:15:05,200 Speaker 2: us from our bureau in San Francisco.