Levi Strauss and CEO Chip Berg told CNBC to Jim Kramer he expects big holiday sales this year as Americans spend some of the money they saved up during the coronavirus pandemic.
“The internal balance has probably not been stronger than this for a long time,” Berg said in an interview that aired Friday on Mad Money. “We are looking forward to a really strong holiday season and this is all supported by an ultra-strong consumer right now.”
Berg’s comments came during a busy week of retail earnings reports spun off by Walmart, Macy’s and Kohl’s. Investors are looking for information on whether consumer demand is resilient to the price increases that some retailers are taking to offset inflationary pressures.
Berg noted that in Kohl’s profit and loss statement, CEO Michelle Gass listed Levi Strauss as one of the private brands sold in his high-selling stores. Berg said the denim maker continues to capitalize on emerging denim trends and people’s need to update parts of their wardrobe.
“About 40% of Americans have changed their waist size. Someone has increased, someone has lowered, but it forces you to go out and update your wardrobe. This, combined with the new denim silhouette that is truly driving the new denim cycle, is truly a tailwind behind our business right now, ”he said.
Levi’s latest quarterly results were released in early October, with the San Francisco-based company beating Wall Street’s P&L estimates. Levi Strauss is up 38% YTD.