The news: Levi Strauss’ recent performance highlights the power of a strong brand.

• Rising gas prices in FYQ2 did little to slow spending among Levi’s core customers, helping the company beat analysts’ expectations on both revenue and profit.
• Revenues grew 8.0% YoY to $1.56 billion, topping the $1.52 billion forecast, while EPS jumped 27% to 28 cents, ahead of the expected 24 cents.
• CEO Michelle Gass told CNBC that its key customer segments remain resilient, driving growth across its Levi’s, Signature, and premium Blue Tab lines.

Those results prompted Levi’s to raise its outlook for the second straight quarter. It now expects revenue growth of 7% to 7.5%, up from prior guidance of 5.5% to 6.5%, and adjusted EPS of $1.46 to $1.52, up from $1.42 to $1.48.

The brand is in the midst of an evolution as it seeks to broaden its assortment and shift more focus to direct-to-consumer sales from its wholesale business, aiming to expand its total addressable market.

Zooming in: Much of Levi’s strength comes from a deliberate push to make the brand more visible and culturally relevant.

In February, the company aired its first Super Bowl ad in more than two decades, featuring celebrities like Doechii, Questlove, and Shai Gilgeous-Alexander. The spot ran during a game at Levi’s Stadium, tying the brand directly to the moment.

• It followed that effort up in Q2 with localized campaigns featuring talent like Mexican pop star Belinda and Bollywood actress Alia Bhatt and activated its partnership with K-pop star Rosé through pop-up shops across Asia, reinforcing its push into the women’s business in the region.
• Levi’s also leaned into the World Cup, launching denim collaborations with the US, Mexico, England, and France football federations.
• When FIFA required the company to cover its logo at Levi’s Stadium, Levi’s turned the restriction into a viral moment by draping the logo in white in a way that still revealed its iconic shape. A post showcasing the draped logo became its most viewed and shared ever, generating roughly 1 billion press impressions.

At the same time, the company is working to protect its brand equity. Levi’s has filed two trademark lawsuits this year against Brazilian brand Farm Rio and Australia’s S/Double, generating $33 million in settlements in the first half of the year, demonstrating a willingness to aggressively defend its intellectual property.

Implications for retailers and marketers: Levi Strauss shows how brand-building and brand protection need to work together. Consumers have a nearly endless array of options—from buying direct to choosing dupes, resale, or buying from a marketplace—and brands need to give shoppers a clear reason to choose them and, ideally, buy directly.

That means providing content and product signals that help shoppers distinguish authentic products from copycats, offering assortments that go beyond what other channels provide, and reinforcing brand value to justify premium pricing and higher margins.

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