Mad Money · Oct 7, 2026
With Michelle Gass, President and CEO of Levi Strauss & Co.
Levi Strauss's sales through its own stores and website grew only 2% last quarter, while its wholesale business grew 6%. Michelle Gass said the direct business was already back to mid-single-digit growth in September.
Levi's stock had been falling for two months along with almost every other consumer discretionary name, Jim Cramer said, because investors assumed high gasoline prices would hurt it. He called the quarter pretty positive.
"This is not about a trend. This is a point in time. And like I said, we've already rebounded." — Michelle Gass
Michelle Gass, President and CEO of Levi Strauss & Co., on Mad Money, ran Kohl's for five years and spent close to 17 years at Starbucks before joining Levi's in 2023. She is turning the company into a retailer that sells mainly through its own stores and website.
The full interview is covered here so you can skip it.
Here are the 5 insights that matter.
Key Takeaways
Levi's own stores and website grew only 2%, and Gass blamed two markets, Europe and the US
Wholesale grew 6% and international sales 8%
A warm European summer and a back-to-school campaign built on the wrong fit caused the slowdown
Part of Levi's tariff refunds is going into marketing, behind the low-rise styles US shoppers want
China grew 13% while other apparel companies struggle there
Gass sees no sign that gasoline prices are hurting her customers
Signature, the brand sold at Walmart, grew 13%
1. Wholesale Carried It
Cramer called the quarter technically mixed: a small revenue miss, partly from currency moves, and a large earnings beat, partly from tariff refunds. Levi's raised its full-year earnings forecast by a little less than some expected.
"Everybody assumed Levi's would be crushed by high gas prices, but not all apparel companies are equal." — Jim Cramer
He asked Gass why wholesale, sales through other retailers, grew so much faster than direct-to-consumer, Levi's own stores and website.
Levi's hit the top of its organic growth guidance, but the mix was different
"We guided 4 to 5 organic growth. We came in about five. But the quarter came in a little differently." — Michelle Gass
"Wholesale was up 6%, international was really strong 8%." — Michelle Gass
"So the wholesale beat, the international growth did offset some weakness that we saw in DTC, which was up only 2%." — Michelle Gass
She said the direct business has already recovered
"Global DTC in September is back up to mid-single digit growth, and we expect the year to be back up to high single digit growth." — Michelle Gass
