Michelle Gass on Life at Levi Strauss

Michelle Gass has placed on the trucker jacket — and it appears to be sporting in properly.

The previous chief government officer of Kohl’s Corp. landed at Levi Strauss & Co. as president in January. And now that she’s accomplished her first leg as CEO-to-be, Gass is able to step again out into the highlight, chatting with WWD in her first interview since taking the high-profile submit. 

It’s been a whirlwind few months with journeys from the Levi’s homebase in San Francisco to Barcelona, Paris and London as she will get to know the corporate from the within whereas additionally overseeing the flagship model in addition to digital and industrial operations.   

Gass has been working intently with Levi’s CEO Chip Bergh, who she described as an “excellent companion and mentor on this journey,” and expects to maintain the corporate on the course that Bergh has set.

“As I sit right here, 90 days in, the technique appears actually proper to me,” Gass stated. “And when you have a method that’s proper —  being model led, [direct-to-consumer] first, diversification — that feels proper. There are new issues that may come alongside for certain, however to me, the facility is how we execute these alternatives and the workforce’s making progress.” 

She pointed to the 18 % progress on the d-to-c enterprise final yr, the truth that the non-denim enterprise is now 40 % of the portfolio and the continued growth within the tops and girls’s companies. 

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The corporate’s internet revenues rose 7 % to $6.2 billion final yr, a rise of 12 % in fixed currencies. Adjusted earnings inched up $604 million from $601 million in an more and more powerful client setting.

“The place I initially can are available in is, ‘How will we speed up?’” Gass stated. “To me, within the quick order, it’s about execution. How we take into consideration our go-to market, how we take into consideration our innovation pipeline inside these areas — there’s a lot alternative, and that’s a whole lot of upside.” 

Gass’ arrival at Levi’s is a culminating second in her greater than 30-year profession, which started with a stint at client big Procter & Gamble and included 17 years at Starbucks and a decade at Kohl’s. 

Proper now — as she runs the enterprise alongside Bergh — Gass has just a bit little bit of area to take inventory of what she’s discovered alongside the best way and determine learn how to push Levi’s ahead. 

Gradual transitions in company energy may be awkward with the longer term and present chiefs angling for legacy and management, respectively. 

However Bergh — who rotated what was a stumbling denims big, efficiently took it public and put it on offense — has made it clear {that a} stable hand off to a powerful chief is a key a part of his job. 

And Gass appreciates the method as she preps to turn out to be CEO by mid-2024. 

“It’s working extremely effectively and exceeding my expectations,” she stated. “Chip and I’ve identified one another for 10 years and…had constructed a very shut relationship. I believe we knew coming into this that we may do that collectively. And it has performed out that manner.

“Sure, we’ve got an prolonged transition,” she stated. “I imagine this can be a present to be with a CEO who I deeply admire and respect and to study as a lot as I can from him throughout this course of is wonderful as a result of I need to ensure that as he departs and retires off to his subsequent chapter that I’ve benefited from all his information, we’ve benefited from a time collectively and that we’ve helped set this firm up for fulfillment. And I imagine this course of could be very a lot doing that.”

Whereas Gass is touring world wide with a plan to hit all the corporate’s main markets by the top of this yr, she is on rather more than a listening tour. She has what she described as “an actual job” that was beforehand dealt with by two executives, overseeing Levi’s in addition to the extra budgeted minded-Signature by Levi Strauss and Denizen manufacturers and working the industrial division. 

That has her in control of 85 % of the corporate, overseeing every part from product design to gross sales. 

“I’m really actually excited to have each of what had been prior separate groups all below my management proper now to start out going after a number of the alternatives that Chip and the workforce recognized earlier than,” Gass stated. “However how can I assist speed up these issues whereas strengthening the management of those two important teams? My accountability within the quick order is to drive the Levi’s enterprise to assist the groups work extra intently along with shared priorities, aligned targets.” 

Whereas Levi’s extra d-to-c future progress story continues to incorporate loads of brick-and-mortar shops, Gass is clearly excited concerning the model’s e-commerce alternatives. 

“There’s a whole lot of upside in that enterprise,” she stated. “And whether or not that’s the loyalty program, the app — I imply, in my prior two lives, I’ve seen the facility of each of these issues.”

That has just a little little bit of Starbucks and Kohl’s coming to Levi’s. 

“Kohl’s is an $18 billion retailer right here within the U.S.,” Gass stated. “After I joined Kohl’s, the digital enterprise was proper round a billion. After I left, it was $6 billion. We constructed a whole lot of omnichannel capabilities to do ship from retailer, purchase on-line, pickup in retailer, simply every kind of capabilities, curbside, you title it. And so understanding learn how to leverage every of the channels individually, shops and e-commerce, construct each on their very own, after which after all harnessing the facility of each.”

Levi’s is a enterprise that has a whole lot of levers as effectively.

It has its personal shops and e-commerce plus a still-substantial wholesale operation and, exterior the denim world, Dockers and Past Yoga.

However it’s the Levi’s model itself that’s the actual star — and a giant a part of that model’s heritage is its readiness to lean in on points that go far past vogue. 

Levi’s, as an example, declared entry to abortion “a important enterprise challenge” because the Supreme Court docket ready to strike down Roe v. Wade and, in 2016, requested prospects to not convey weapons into its shops after a client unintentionally shot himself within the foot in a dressing room. 

Whereas accepting the WWD Honor for Company Citizenship on behalf of Levi’s in 2021, Bergh acknowledged the results for taking such robust positions.

“Once we determined to weigh in on the gun violence challenge, I had unmarked police vehicles in entrance of my home for a pair weeks,” Bergh stated. “I had demise threats, however it was the fitting factor to weigh in on.”

He stated carrying on that custom of standing up for essential points was a component of his succession planning. “You want a CEO who has thick pores and skin, who’s not afraid to stay their neck out for the corporate as a result of it takes thick pores and skin to do it,” Bergh stated. 

Gass — who’s risen to the highest of the nonetheless male-dominated retail world and squared off with activist traders at Kohl’s — stated she does have the requisite thick pores and skin and is completely keen to place herself on the market. 

“Amongst many the reason why I needed to hitch LS&Co. was as a result of how values and purpose-led this firm is,” she stated. “I’ve at all times been pushed that manner, if I am going again to my Starbucks days, absolutely spending near 17 years there the place tradition and values are on the middle of that group.”

Likewise, she stated she was happy with her work at Kohl’s to turn out to be extra vocal on variety. 

“Right here at Levi’s, I’m simply actually excited to comply with within the footsteps of Chip and different leaders to proceed to be very goal pushed, values led,” Gass stated. “I really like the values of the corporate round braveness, originality, empathy, integrity. These align with my values. And what does that imply? It does imply that we take a stand and we’re not afraid to publicly speak concerning the issues that matter to our staff and that matter to our prospects.”

Gass’ ascent to the C-suite is a press release of its personal. 

“I believe as a girl chief, we don’t have sufficient of them,” she stated of the style business. “I at all times need to have the ability to advocate and be a task mannequin for ladies — effectively, and males for that matter — of all ages, to assist them attain their aspirations. However actually as a feminine chief, I really feel a terrific sense of accountability to be an advocate for extra future feminine leaders.”

So Gass is doing just a little little bit of every part — serving as position mannequin, pushing the accelerator on the model already rising and making ready to step up once more as CEO, the place the concentration is going to get even brighter, as she effectively is aware of from her time at Kohl’s. 

“While you’re a pacesetter of an organization, you’re proving it every single day,” Gass stated. “Whereas this firm has been on an incredible run, you must earn it every single day. And that’s what I imagine. I work for our shareholders, our stakeholders, our groups and our prospects. And my job is to ensure that I can unleash the expertise on this unbelievable group and that we are able to obtain the daring targets that we’ve set forth. And I couldn’t be extra honored to have the ability to try this.”