The company is also reducing capital spend on discretionary projects while re-evaluating its store rollout plan. It is, however, still on track to open its new smaller store format this summer, and it remains optimistic about the model.
“I do believe crisis creates opportunities,” said Bergh. “There are going to be some players in this industry that don't make it, and that's going to open up real estate opportunities for us potentially. …We could wind up being the shared beneficiary of others not making it.”
Consumer engagement remains a priority for Levi’s as it seeks to remain top of mind during a period in which apparel purchasing is expected to take a backseat. It’s replicating digital strategies that proved to be successful in China during and after the area’s lockdown, such as “do-it-yourself content” on its website for consumers to customize their Levi's products at home.
The company also launched a month-long virtual music festival on Instagram Live featuring such artists as Snoop Dogg and Brett Young — performing, of course, in their Levi's.
Bergh noted that social media is helping propel brand awareness, giving the company something to build on post-crisis.
“I'm very, very confident that whatever the shock is to the consumer and the economy, when the consumer does emerge from hibernation, they're going want to go back to the brands that they love and to the brands that they're comfortable with. … And that's why I believe we're poised to win in this environment,” said Bergh.