Levi Strauss CEO Sees Long-Term Success With Beyoncé Partnership Amidst Business Challenges

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Levi Strauss CEO Michelle Gass highlighted the potential of the denim retailer's partnership with Beyoncé to boost women's clothing sales, while also addressing recent challenges facing the company.

Levi Strauss CEO Michelle Gass told CNBC's Jim Cramer on Wednesday how the denim retailer will benefit from its partnership with Beyoncé, saying the ads could help boost sales of women's clothing.

"Levi's has been talking about women's for quite some time. We see this as growing to at least half of our business, doubling over time, $2 billion even just this year," Gass said. "Now you bring Beyoncé into the ecosystem, you know, we think we're just set up for the long term really, really well.""Levi's has been talking about women's for quite some time.

Levi's officially launched the first part of a new ad campaign with the iconic pop star on Monday. The collaboration comes after Beyoncé released her newest album, "Cowboy Carter," in the spring that featured a track called "LEVII'S JEANS.

She described problems with the company's business in China, Mexico and with its Dockers brand. She said the Levi's faced some of its "own executional issues" in the two countries, but that the retailer is addressing them. Difficulties in China were exacerbated by the macro environment in the economy, she added.

"We're expecting sequential improvement into the fourth quarter, being up mid-single digits and carrying that through into '25," she said.

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