WEBVTT - Chief Future Officer: Harmit Singh, Levi's

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<v Speaker 1>After a hundred fifty years manufacturing a classic American product,

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<v Speaker 1>Levi's has a tradition of quality and brand awareness that

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<v Speaker 1>few companies can match. Just a few of Levi's Blue

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<v Speaker 1>jeans and a lot of hard miles. The company's name

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<v Speaker 1>is almost synonymous with blue jeans. But this history offered

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<v Speaker 1>little protection when the COVID pandemic devastated global retail in

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<v Speaker 1>early All of a sudden, most of our stores around

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<v Speaker 1>the world were closed like that, and we saw our

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<v Speaker 1>revenues pretty much dry up. As the shock of the

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<v Speaker 1>crisis subsided and economies began to reopen, Levi's and its

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<v Speaker 1>industry peers stood at a crossroads. I think that at

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<v Speaker 1>the end of the day, what was really unique for

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<v Speaker 1>those that took advantage was COVID was this opportunity for

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<v Speaker 1>companies to re fashion their businesses for the future. We

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<v Speaker 1>are going to emerge from the pandemic a much stronger company,

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<v Speaker 1>and now we're saying, okay, what does the next five

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<v Speaker 1>to ten years look like? This is the question VI

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<v Speaker 1>CFO harm Eat Sing grapples with every day as CFO.

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<v Speaker 1>The one important thing is to ensure you you're able

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<v Speaker 1>to connect the dots and always think longer term. I

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<v Speaker 1>think it's critical. Harm Eat Sing has lots of dots

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<v Speaker 1>to connect. He's managing the company's complex advances into digital technology,

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<v Speaker 1>ensuring that it can meet ambitious sustainability targets, and making

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<v Speaker 1>sure that all its processes from sourcing to sales are

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<v Speaker 1>integrated into this transformation. He's an operator and he's he

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<v Speaker 1>understands the business at a very granular level, but can

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<v Speaker 1>also copter up high feet and think about where are

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<v Speaker 1>we going. That's why you could call harm eat Sing

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<v Speaker 1>Levi's chief future officer. Levi's literally invent did the work

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<v Speaker 1>pants that would come to be known as blue jeens,

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<v Speaker 1>patenting a process for sewing rivets into Denham Clothing way

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<v Speaker 1>back in eighteen seventy three. But that pioneer spirit was

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<v Speaker 1>lagging on the financial side of the business. When chipped

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<v Speaker 1>for a hired heart meet Sing in When I joined

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<v Speaker 1>the company eight nine years ago, the batton sheet was

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<v Speaker 1>a constrained We were not investing for growing. We had

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<v Speaker 1>two billion dollars of debt on the balance sheet. We

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<v Speaker 1>were actually spending more money on interest expense than we

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<v Speaker 1>were advertising our brand. And um, you know, one of

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<v Speaker 1>his first missions was to turn the balance sheet from

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<v Speaker 1>a liability into an asset. If he did that, we

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<v Speaker 1>paid down a billion dollars in debt and we started

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<v Speaker 1>reinvesting back in the Levi's brand, and that's been central

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<v Speaker 1>to the turnaround of the business. Revenues grew steadily through

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<v Speaker 1>the decade, peaking in when the company went public. Levi's

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<v Speaker 1>maintained a dominant share of the market for genes. Then

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<v Speaker 1>came the pandemic, and by early all of this progress

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<v Speaker 1>was put on pause. So we saw a billion dollars

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<v Speaker 1>of revenue evaporate that first quarter of the pandemic because

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<v Speaker 1>our stores were closed, our wholesale partner doors were closed.

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<v Speaker 1>As we got into the pandemic, we said, we've got

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<v Speaker 1>to two things. We've got to manage through the crisis,

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<v Speaker 1>which is all about preserving cash, driving profitably, and communicating

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<v Speaker 1>with all our stakeholders. But importantly, we had to emerge

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<v Speaker 1>stronger because the consumer and employee experiences were changing. What

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<v Speaker 1>are some decisions you made under pandemic pressure that you're

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<v Speaker 1>really proud of. We pivoted to a new strategic blueprint.

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<v Speaker 1>The pivot was on three basic things. Elevation of the brand,

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<v Speaker 1>um acceleration of a director consumer business and diversifying a

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<v Speaker 1>product based a number of brands. We just closed the

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<v Speaker 1>deal and entered the active ast segment beyond yoga. The

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<v Speaker 1>other thing we did was we continue to rest for

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<v Speaker 1>the long term, so we invested a lot more capital

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<v Speaker 1>in accelerating our e commerce business. E commerce is becoming

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<v Speaker 1>a bigger piece of a business is profitable today as

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<v Speaker 1>well as we spend the time ensuring that we balanced

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<v Speaker 1>all stakeholders. So for example, we took the unfortunate decision

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<v Speaker 1>of letting people off, but we cut dividends. We also

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<v Speaker 1>extended you know, our benefits. We introduced paid sickly because

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<v Speaker 1>ensuring safety and health of our frontline staff was critical.

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<v Speaker 1>So I think the decisions we were taking were guided,

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<v Speaker 1>but not only to emerge stronger financially, but also ensuring

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<v Speaker 1>that our values as a company continued resonant with all

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<v Speaker 1>our stakeholders. In the middle of the pandemic, suddenly there's

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<v Speaker 1>this shift away from skinny jeans and toward mom jeans.

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<v Speaker 1>Was this disruption a huge benefit to Levis because people

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<v Speaker 1>are now turning over their wardrobes. They want something new. Yeah,

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<v Speaker 1>you know, under research of all ways, sizes had changed

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<v Speaker 1>during the pandemic. Some went up, someone down, both for

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<v Speaker 1>him as well as he That does mean that you've

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<v Speaker 1>got to go back and make a change in your closet.

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<v Speaker 1>And you you you tend to um engage with brands

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<v Speaker 1>that are engaging with you. So I think a combination

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<v Speaker 1>of direct engagement with the consumer, even doing to tough times,

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<v Speaker 1>investing in things like growing e commerce. I think things

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<v Speaker 1>that will continue to resonate. Where is Levi's on that

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<v Speaker 1>path right now to a digital future? Today? Our digital

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<v Speaker 1>ecosystem is about our total business very profitable. We aspire

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<v Speaker 1>to make this a third of our business. Direct to

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<v Speaker 1>consumer business, which includes our stores is about forty of

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<v Speaker 1>our business. It used to be half that years ago.

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<v Speaker 1>We aspire to grow that to about you know, six

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<v Speaker 1>or two thirds of our business. If the analogy is

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<v Speaker 1>a baseball energy where are we uh, I'd say we're

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<v Speaker 1>bottom of the four teenings. We've got a long runway

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<v Speaker 1>for growth. So supply chain disruption, commodity costs, this is

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<v Speaker 1>all putting pressure on the process of bringing anything to market.

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<v Speaker 1>What is the new normal going to be there? When

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<v Speaker 1>it comes to supply chain disruption, pricing issues, etcetera. If

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<v Speaker 1>you think of supply chain, think of two broad buckets.

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<v Speaker 1>One is sourcing and second is is commodity and costing.

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<v Speaker 1>On the sourcing side, very early on we said we

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<v Speaker 1>won't put all eggs in one basket, and um so

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<v Speaker 1>um we sourced across twenty four countries. Um not from

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<v Speaker 1>any single country. Do we source more than you talked

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<v Speaker 1>about costs? You know, given our global buying power, we've

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<v Speaker 1>already negotiated the first half of the year a very

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<v Speaker 1>low single digit inflation relative to last year. The one

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<v Speaker 1>thing that because the brand so hard has been really

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<v Speaker 1>resonating with the consumers, we've continued to take pricing even

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<v Speaker 1>during the pandemic. The brand today has pricing file LEVI.

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<v Speaker 1>Full year revenues are on track to match fulfilling the

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<v Speaker 1>company's pledge to emerge stronger from the COVID crisis. We

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<v Speaker 1>committed in the middle of the pandemic that when our

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<v Speaker 1>revenues got back to pre pandemic levels, our margins would

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<v Speaker 1>be up more than two points and we've now delivered

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<v Speaker 1>on that. But with the virus still weighing on consumer

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<v Speaker 1>confidence and supply chains and inflation surging around the globe,

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<v Speaker 1>This is no time for any retailer to relax. As

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<v Speaker 1>you look forward over here, I think the biggest question

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<v Speaker 1>is who's going to take the learnings from the pandemic

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<v Speaker 1>versus who's just gonna fay back to what they did

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<v Speaker 1>in the past. UM. I think over time, UH, you know,

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<v Speaker 1>because of the learnings people that had during the pandemic. Uh,

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<v Speaker 1>there is going to be um thinking about how do

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<v Speaker 1>you globalize your supply chain. Do you consentrate in a

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<v Speaker 1>few countries, do you diversify, do bring some production home.

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<v Speaker 1>One of the programs we started a couple of years

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<v Speaker 1>ago was our f l X program. It's using lasers

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<v Speaker 1>to finish your denom product. It used to be done

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<v Speaker 1>by hand, it used to be done overseas, but now

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<v Speaker 1>we bring in the blanks and we finished it closer

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<v Speaker 1>to markets. And so we're in the process of expanding

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<v Speaker 1>that program around the world. So I think people need

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<v Speaker 1>to just think about different ways of doing it, and

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<v Speaker 1>I believe technology will play a key role. Her meat

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<v Speaker 1>sayings affinity for Levi's tracks all the way back to

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<v Speaker 1>when he was a teenager in India. I had an

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<v Speaker 1>aunt who's coming overseas and she said, what do you

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<v Speaker 1>want and I said, I want to pay a Levis.

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<v Speaker 1>At an early age, he decided to study finance. I

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<v Speaker 1>did my CPOOR chart of the counting seat with a

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<v Speaker 1>goal that I wanted to start my own CPF phone.

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<v Speaker 1>The allure of entrepreneurship faded when her Meat got married

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<v Speaker 1>and started a family. He took a job as a

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<v Speaker 1>financial analyst at American Express in India. If someone has

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<v Speaker 1>told me at that point, her Meat you would be

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<v Speaker 1>working in the US would be CFO of two large

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<v Speaker 1>American icons, hight And and Levi's, take two companies public,

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<v Speaker 1>I would have bet against it. Her Meat Singh first

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<v Speaker 1>reached the C suite in the US when he was

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<v Speaker 1>named chief financial officer of Pizza Hut. He then took

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<v Speaker 1>the same role at parent company Yum Restaurants. After a

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<v Speaker 1>successful stint as CFO for Hyde Hotels, Chipburg hired him

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<v Speaker 1>at Levi's in January. I've been very fortunate, been lucky,

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<v Speaker 1>have had great mentors, and you know, one thing has

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<v Speaker 1>led to the other. Throughout their time working together, Chipburg

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<v Speaker 1>and Harmeat Singh have been partners in a steady push

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<v Speaker 1>to make Levi's more sustainable. First, it's not something that

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<v Speaker 1>we just started. It's been in our DNA, as people

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<v Speaker 1>in the company would say, it's woven into our fabric.

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<v Speaker 1>Her meat has been driving a lot of the investments

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<v Speaker 1>behind making this company a more sustainable company. Many of

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<v Speaker 1>these investments have gone into the Eureka Innovation Lab, a

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<v Speaker 1>research and development center a few blocks from corporate headquarters.

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<v Speaker 1>Progress made here has helped levi significantly reduced its greenhouse

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<v Speaker 1>gas emissions and water use in the past decade, and

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<v Speaker 1>now Levi's has made sustainability a central pillar of its

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<v Speaker 1>consumer strategy with a highly non traditional, even counterintuitive ad campaign,

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<v Speaker 1>buy Better Where Longer. We had a lot of internal

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<v Speaker 1>debates about you know, is the selling idea by better

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<v Speaker 1>where Longer going to reduce consumption? You know, I fundamentally

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<v Speaker 1>believe that it plays to our strong suit. It is

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<v Speaker 1>kind of it almost defines what the Levi's brand is

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<v Speaker 1>all about. We believe because you know, the younger generation,

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<v Speaker 1>the millennials for them, you know, interacting and engaging with

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<v Speaker 1>consumer of companies that aspire to be most sustainable has

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<v Speaker 1>allowed us to reach out to newer consumers. So even

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<v Speaker 1>though people may buy less, we believe we're reaching out

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<v Speaker 1>a lot more new consumers, and that's why it actually,

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<v Speaker 1>in our view, it actually will grow the revenue and

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<v Speaker 1>grow profitability while at the same time ensuring you know

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<v Speaker 1>that our products are sustainable, be doing the right thing

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<v Speaker 1>for the planet. The way longer theme is meeting a moment.

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<v Speaker 1>According to research by Global Data between resale, clothing doubled

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<v Speaker 1>as a share of the consumer closet and could potentially

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<v Speaker 1>double again by Levi's has put its own stamp on

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<v Speaker 1>reconditioning and resale with tailor shops as a feature of

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<v Speaker 1>its stores. It allows us to directly engage with the consumer.

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<v Speaker 1>We started the tailor shops in Europe. It was a

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<v Speaker 1>runaway success and now we expanded around the world. Most

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<v Speaker 1>of our stores in the US have it all. Our

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<v Speaker 1>next gen stores, which are our latest format, have tailor's shops.

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<v Speaker 1>We're taking the reins in our own hands. It's a

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<v Speaker 1>I think the addressable side of the market is about

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<v Speaker 1>dollars and we've just um you know, entered it. So

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<v Speaker 1>that's clearly an opportunity for us. In Levi's issued its

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<v Speaker 1>first standalone sustainability report. It covers environmental, social and governance issues,

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<v Speaker 1>outlining programs priorities and principles and setting ambitious targets for performance.

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<v Speaker 1>It will be up to harm Eat Singh and Chief

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<v Speaker 1>Operating Officer Liz O'Neil to execute the plans they helped devise.

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<v Speaker 1>Harmat and I work together a lot on figuring out

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<v Speaker 1>what is the what's the strategic direction, how are we

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<v Speaker 1>going to get there, and how are we going to

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<v Speaker 1>invest in order to actually make that a reality. What

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<v Speaker 1>falls under the CEO umbrella and the f O umbrella

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<v Speaker 1>and where did those over overlap? Well, sustainability reports in

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<v Speaker 1>through me, so I have the supply chain as well

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<v Speaker 1>as the sustainability team UM, but nothing happens without the CFO. UM.

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<v Speaker 1>The CFO is imperative to this and and honestly, right

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<v Speaker 1>now we're in such a big transformation as an industry.

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<v Speaker 1>As we try to transform, we need the help of

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<v Speaker 1>the CFO to really help us figure out what are

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<v Speaker 1>those focus areas and how do we distort our resources

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<v Speaker 1>and our investments to those areas that are going to

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<v Speaker 1>matter most. Every year we do a strategic business plan. UM.

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<v Speaker 1>You're one of the few companies where E s G

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<v Speaker 1>and sustainability is the cornerstone of a to digic plan

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<v Speaker 1>and thinking about, Okay, you're saving all this money in negotiations.

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<v Speaker 1>Are you going to drop it to the profitability or

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<v Speaker 1>are you going to invest for the long term? Think

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<v Speaker 1>about this place right. People ask me, is this getting

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<v Speaker 1>you the payback? I say, you can't measure this from

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<v Speaker 1>a payback of our innovation is coming from here. We

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<v Speaker 1>are building for tomorrow. You know this is you know,

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<v Speaker 1>it's a very easy answer. You're getting the payback. And

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<v Speaker 1>I think that's the discussion that happens on a regular basis.

0:14:00.679 --> 0:14:03.720
<v Speaker 1>Singing O'Neill showed me how that discussion is driving levies

0:14:03.760 --> 0:14:08.360
<v Speaker 1>through a major shift from hardware traditional resource intensive manufacturing

0:14:08.400 --> 0:14:12.320
<v Speaker 1>processes to software. They gave me an iPad and told

0:14:12.360 --> 0:14:16.320
<v Speaker 1>me to design the genes of my dreams. You can

0:14:16.320 --> 0:14:19.000
<v Speaker 1>come down here and we all love our damaged and

0:14:19.040 --> 0:14:23.040
<v Speaker 1>destructive genes, so you can love this little damage. We

0:14:23.120 --> 0:14:26.600
<v Speaker 1>can add damage. But that wasn't even the coolest part.

0:14:27.080 --> 0:14:29.880
<v Speaker 1>So what do you customize? The well come to life?

0:14:31.480 --> 0:14:35.120
<v Speaker 1>So we're going to see my damages on there. Oh

0:14:35.120 --> 0:14:40.320
<v Speaker 1>my goodness, it's happening in real at times like that,

0:14:40.640 --> 0:14:43.400
<v Speaker 1>a distressed pair of levies that just needs one short

0:14:43.480 --> 0:14:46.840
<v Speaker 1>wash to be ready to wear. This technology is already

0:14:46.920 --> 0:14:50.960
<v Speaker 1>in use and already delivering results. We've reduced the amount

0:14:51.000 --> 0:14:55.280
<v Speaker 1>of water by almost across most of our product line

0:14:55.360 --> 0:14:58.880
<v Speaker 1>over the last ten years, saving billions of leaders of

0:14:58.920 --> 0:15:02.600
<v Speaker 1>water um finding new ways to finish the genes that

0:15:02.640 --> 0:15:05.520
<v Speaker 1>are just much more sustainable. How long can you recycle

0:15:05.600 --> 0:15:08.200
<v Speaker 1>the water for? How long before you have to dispose

0:15:08.240 --> 0:15:11.400
<v Speaker 1>of it? Well, we with the laser finishing that we

0:15:11.560 --> 0:15:14.720
<v Speaker 1>use in many of the factories, we can recycle the

0:15:14.760 --> 0:15:19.920
<v Speaker 1>water virtually endlessly. So on the right these are traditional

0:15:20.200 --> 0:15:23.600
<v Speaker 1>washing machines. They use a lot of water. Right on

0:15:23.640 --> 0:15:27.360
<v Speaker 1>the left is an ozone driven washing machine, no water,

0:15:27.920 --> 0:15:33.080
<v Speaker 1>and so it washes the pants exactly and using this technology.

0:15:33.160 --> 0:15:36.680
<v Speaker 1>All our factories now use that technology. And if you

0:15:37.000 --> 0:15:40.520
<v Speaker 1>go back and look at how much water we have

0:15:40.680 --> 0:15:45.480
<v Speaker 1>saved since two thousand eleven, is approximately thirteen million liters

0:15:45.480 --> 0:15:48.840
<v Speaker 1>of water. Her Meat Singh has taken his commitment to

0:15:48.840 --> 0:15:52.320
<v Speaker 1>sustainability beyond his role at Levi's. He's a leader among

0:15:52.360 --> 0:15:55.440
<v Speaker 1>financial executives who want their work to help protect the

0:15:55.480 --> 0:16:00.080
<v Speaker 1>future of the planet. Print Shaws has an organizations all

0:16:00.080 --> 0:16:03.960
<v Speaker 1>accounting for sustainability. He started this probably ten twelve years

0:16:03.960 --> 0:16:07.600
<v Speaker 1>ago and today I am the uh you know, the

0:16:07.640 --> 0:16:10.640
<v Speaker 1>coal chair for the U S chapter. What we're doing

0:16:10.680 --> 0:16:14.320
<v Speaker 1>as a group of CFOs is we're sharing best practices.

0:16:14.760 --> 0:16:18.240
<v Speaker 1>We're engaged with investors. We also engaged with the SEC,

0:16:18.440 --> 0:16:21.680
<v Speaker 1>the I f S as they established disclosure standards. So

0:16:22.040 --> 0:16:24.680
<v Speaker 1>I think, you know, it's the least I can do

0:16:24.840 --> 0:16:28.360
<v Speaker 1>on something that's so important. Leavi cfo har meet Thing

0:16:28.720 --> 0:16:32.080
<v Speaker 1>loves sports. He played basketball and cricket growing up in

0:16:32.080 --> 0:16:35.200
<v Speaker 1>India and more recently took up golf. What do you

0:16:35.200 --> 0:16:38.080
<v Speaker 1>love about sports? Are you ultra competitive? Does it help

0:16:38.120 --> 0:16:41.720
<v Speaker 1>you relax or decompress? I like to win, but win

0:16:41.760 --> 0:16:44.640
<v Speaker 1>the right way. But it also gets me to relax

0:16:45.600 --> 0:16:47.760
<v Speaker 1>because you know, I like to associate, you know, a

0:16:47.760 --> 0:16:50.120
<v Speaker 1>little bit of downtime, watch a game of golf, play

0:16:50.120 --> 0:16:53.360
<v Speaker 1>a game of golf, see some cricket. So I think

0:16:53.400 --> 0:16:56.760
<v Speaker 1>a good combination of both. You have created your own

0:16:56.760 --> 0:17:01.160
<v Speaker 1>award tied to cricket for your team he Levise. It's

0:17:01.160 --> 0:17:03.600
<v Speaker 1>called hit for Sex. What I tell people is it's

0:17:03.640 --> 0:17:05.960
<v Speaker 1>like knocking the ball out of the park, so link

0:17:06.040 --> 0:17:09.239
<v Speaker 1>it back to baseball. It's a home run and I

0:17:09.280 --> 0:17:12.359
<v Speaker 1>give it to folks who um, you know, go beyond

0:17:12.920 --> 0:17:15.800
<v Speaker 1>their normal job and make a big difference. I'm a

0:17:15.840 --> 0:17:20.439
<v Speaker 1>big believer in recognizing good work because I think that

0:17:20.680 --> 0:17:25.320
<v Speaker 1>really helps motivate people, motivate teams. And you know, people

0:17:25.320 --> 0:17:27.280
<v Speaker 1>believed in me, and that's why I'm here, so in

0:17:27.320 --> 0:17:30.399
<v Speaker 1>my job to believe in people from talent. Sports and

0:17:30.440 --> 0:17:34.040
<v Speaker 1>business also intersected for saying when Levi's purchased naming rights

0:17:34.040 --> 0:17:37.239
<v Speaker 1>to the San Francisco forty Niners new stadium, although at

0:17:37.280 --> 0:17:40.600
<v Speaker 1>first he was blindsided by the deal, that was a

0:17:40.600 --> 0:17:44.399
<v Speaker 1>week into this role, the balance sheet was constrained. He

0:17:44.400 --> 0:17:47.359
<v Speaker 1>walks into my office because he's a he's built brands,

0:17:47.359 --> 0:17:50.359
<v Speaker 1>and he says, what do you think of naming rights

0:17:50.400 --> 0:17:54.000
<v Speaker 1>forum Levi Stadium? And I said, how much is gonna cost?

0:17:54.040 --> 0:17:56.600
<v Speaker 1>And he says, you know, a small sum of two

0:17:56.680 --> 0:17:59.920
<v Speaker 1>hundred million dollars. I said, really, have I gotten into

0:18:00.000 --> 0:18:03.359
<v Speaker 1>their own company? We got together and said, okay, how

0:18:03.359 --> 0:18:06.320
<v Speaker 1>do we make this happen and make this a success?

0:18:06.480 --> 0:18:09.359
<v Speaker 1>And um, you know the forty Linders did well that

0:18:09.760 --> 0:18:12.000
<v Speaker 1>you know they we had a Super Bowl and a

0:18:12.080 --> 0:18:15.240
<v Speaker 1>couple of years into it and everybody goes there, I'd

0:18:15.240 --> 0:18:18.400
<v Speaker 1>say a dresses casually, hopefully a lot more casual after

0:18:18.440 --> 0:18:21.240
<v Speaker 1>the pandemic, but a lot of them are wearing our products,

0:18:21.240 --> 0:18:24.919
<v Speaker 1>so it's really resonant with who we are. A brand

0:18:24.920 --> 0:18:27.560
<v Speaker 1>with a fifty year history isn't going to change its

0:18:27.600 --> 0:18:31.640
<v Speaker 1>core identity even after a disruption like the pandemic. But Levi's,

0:18:31.800 --> 0:18:35.280
<v Speaker 1>like retail companies everywhere, is determined to build lessons from

0:18:35.320 --> 0:18:37.919
<v Speaker 1>the last two years into a vision for the future.

0:18:38.960 --> 0:18:42.399
<v Speaker 1>We have to sustain what we have emerged out of

0:18:42.920 --> 0:18:45.600
<v Speaker 1>um Ensuring that we continue to invest in the digital

0:18:45.640 --> 0:18:49.760
<v Speaker 1>transformation of the company is critical. Transforming the digital doesn't

0:18:49.840 --> 0:18:53.840
<v Speaker 1>mean abandoning physical retail. Even though Bloomberg Intelligence sees brick

0:18:53.880 --> 0:18:58.360
<v Speaker 1>and mortar apparel sales declining from a peak, BMO Capital

0:18:58.400 --> 0:19:01.760
<v Speaker 1>Managing Director Simeon Seagull says stores still have an important

0:19:01.800 --> 0:19:05.720
<v Speaker 1>place in the omni channel mix. The retail model in

0:19:05.760 --> 0:19:08.080
<v Speaker 1>the past worked for a reason and it still does,

0:19:08.920 --> 0:19:13.080
<v Speaker 1>so disrupting doesn't mean destroying. The consumer doesn't wake up

0:19:13.080 --> 0:19:14.960
<v Speaker 1>in the morning and go today is going to be

0:19:15.000 --> 0:19:16.720
<v Speaker 1>a brick and mortar day, or today is going to

0:19:16.760 --> 0:19:18.600
<v Speaker 1>be an e commerce stay. They wake up and they go,

0:19:19.160 --> 0:19:21.240
<v Speaker 1>I want to buy a pair of Levi's. I think

0:19:21.280 --> 0:19:23.239
<v Speaker 1>what we're going to find is omni channel doesn't mean

0:19:23.400 --> 0:19:27.800
<v Speaker 1>being everywhere for everyone. It probably means using everything that

0:19:27.880 --> 0:19:31.359
<v Speaker 1>you have to the best of its ability and figuring

0:19:31.359 --> 0:19:33.280
<v Speaker 1>out how to represent Once you know what you want

0:19:33.280 --> 0:19:37.560
<v Speaker 1>to do, from sales channels to sustainability, from profit margins

0:19:37.560 --> 0:19:40.800
<v Speaker 1>to core principles. Her meat Singh will be making decisions

0:19:40.840 --> 0:19:44.000
<v Speaker 1>that God Levies into the future. So I asked him

0:19:44.119 --> 0:19:47.960
<v Speaker 1>what he sees when he looks ahead. What's the opportunity

0:19:48.160 --> 0:19:51.560
<v Speaker 1>for Levies in the next ten years that excites you most.

0:19:52.480 --> 0:19:55.800
<v Speaker 1>I think, you know, owning a bigger share off the closet,

0:19:56.040 --> 0:20:00.199
<v Speaker 1>and it's not only denim, it's also active, is not

0:20:00.240 --> 0:20:06.199
<v Speaker 1>only bottoms, it's owning tops and so diversifying up product base. Um.

0:20:06.240 --> 0:20:10.160
<v Speaker 1>You know, currently we have you know, a big brand

0:20:10.160 --> 0:20:13.080
<v Speaker 1>in Levi's. We just born Beyond Yoga, and the question

0:20:13.160 --> 0:20:16.359
<v Speaker 1>is can we make the company with a company that

0:20:16.400 --> 0:20:19.879
<v Speaker 1>has more portfolio brands longer term? What's the challenge for

0:20:20.000 --> 0:20:22.320
<v Speaker 1>Levi's in the next ten years that keeps you up

0:20:22.359 --> 0:20:25.560
<v Speaker 1>at night? I'd say, you know, going through different crisis

0:20:25.640 --> 0:20:28.320
<v Speaker 1>because there's you know, living in a very uncertain world.

0:20:28.880 --> 0:20:33.160
<v Speaker 1>I think dealing with issues like climate I would say,

0:20:33.400 --> 0:20:39.040
<v Speaker 1>cyber security UM and the dangers offered UM. I'd say

0:20:39.600 --> 0:20:42.959
<v Speaker 1>in showing that we balance UM, you know, all our

0:20:43.000 --> 0:20:48.879
<v Speaker 1>stakeholders without disappointing any as well as growing the market

0:20:48.920 --> 0:20:50.960
<v Speaker 1>cap of the company, which you've done successfully over the

0:20:51.040 --> 0:20:52.879
<v Speaker 1>last couple of years. So quite a few things are

0:20:52.920 --> 0:20:56.000
<v Speaker 1>keeping you up at night. Yeah, you know, I'm seven

0:20:56.080 --> 0:20:59.280
<v Speaker 1>person and I love thinking about as here for the

0:20:59.320 --> 0:21:02.040
<v Speaker 1>one important thing is to ensure you you're able to

0:21:02.080 --> 0:21:05.439
<v Speaker 1>connect the dots and just making sure we're able to

0:21:05.480 --> 0:21:09.920
<v Speaker 1>do that UM and always think longer term. I think

0:21:09.920 --> 0:21:12.640
<v Speaker 1>it's critical. How do you see your role as CFO

0:21:12.840 --> 0:21:17.520
<v Speaker 1>changing in the next decade. I'd say UM having a

0:21:17.560 --> 0:21:21.560
<v Speaker 1>broader influence around a lot of many things. I think

0:21:21.640 --> 0:21:26.920
<v Speaker 1>the UM the desire to unlock not only shareholder value,

0:21:26.920 --> 0:21:30.800
<v Speaker 1>but also stakehold of value I think becomes important UM.

0:21:31.119 --> 0:21:36.720
<v Speaker 1>I think the desire to build UM a very successful team,

0:21:36.760 --> 0:21:42.560
<v Speaker 1>a talent that is diverse and is making an impact

0:21:42.560 --> 0:21:46.159
<v Speaker 1>through the organization. I think it's critical. What's a skill set,

0:21:46.280 --> 0:21:49.639
<v Speaker 1>skill area that you think every CFO will need to

0:21:49.720 --> 0:21:55.040
<v Speaker 1>harm in the next decade. I think listening, being empathetic,

0:21:55.960 --> 0:22:01.199
<v Speaker 1>building trust, um by being authentic, I think are going

0:22:01.240 --> 0:22:06.480
<v Speaker 1>to be really critical skills that CFOs probably need longer term.

0:22:06.520 --> 0:22:08.800
<v Speaker 1>What advice would you give to a CFO who got

0:22:08.800 --> 0:22:15.560
<v Speaker 1>promoted today, Learn the business, build your relationships, and don't

0:22:15.720 --> 0:22:18.560
<v Speaker 1>unleash the playbook that you grew up with. Make it

0:22:18.720 --> 0:22:23.560
<v Speaker 1>relevant to the circumstance in the situation, because a lot

0:22:23.560 --> 0:22:25.960
<v Speaker 1>of times people just come with a playbook can say Okay,

0:22:25.960 --> 0:22:30.080
<v Speaker 1>we're gonna roll that. Don't do that. Think longer term,

0:22:30.160 --> 0:22:34.560
<v Speaker 1>UM and build your equity, but with a longer term perspective,

0:22:37.080 --> 0:22:41.119
<v Speaker 1>look forward, not backward, and don't rely on what worked before.

0:22:41.680 --> 0:22:44.440
<v Speaker 1>Not what you'd expect from a steward of an American icon,

0:22:44.840 --> 0:22:49.400
<v Speaker 1>but exactly what makes harmonad sing Levi Chief Future Officer.

0:22:49.960 --> 0:22:52.480
<v Speaker 1>I'm Emily Chang. This is Bloomberg