- In today’s CEO Daily: Fortune’s Phil Wahba interviews Levi’s CEO Michelle Gass.
- The big leadership story: Energy experts fret over the outcome of the Iran ceasefire.
- The markets: Down globally as Iran accuses the U.S. of violating the two-week truce.
- Plus: All the news and watercooler chat from Fortune.
Good morning. Yesterday, I chatted with Levi Strauss CEO Michelle Gass to ask her why she thinks her strategy is working so well, a question on many minds given that similar success eluded her when she was CEO at Kohl’s. Her conclusion: the Levi’s gig plays to all the strengths she’s developed over her long career, and the denim clothier was at the right place for her to take the reins.
We spoke the day after Levi’s reported a stellar first quarter in which net revenue rose 14%—and those results may have quieted Gass’s critics for good. When Gass was first announced as Levi’s president in 2022—spending a year under the tutelage of CEO predecessor Chip Bergh before taking over a year later—many in the peanut gallery pointed to her previous struggles at Kohl’s as reason for skepticism.
But two years in, Gass’s tenure at Levi’s has been an unequivocal win. Revenue grew 3% in her first year, then 4% in 2025 and growth is now accelerating. Shares rose 11% on Wednesday and have almost doubled in the last year. And Levi’s is very much in the cultural zeitgeist: its 517 women’s jeans have been featured prominently in Love Story, the fictionalized TV series chronicling the Carolyn Bessette–JFK Jr. saga.
Same executive, same human being, but two different outcomes. What gives?
For one thing, the Levi’s role taps into the consumer brands exposure Gass gained earlier in her career at Starbucks, which sells mostly its own products and where she honed her analytically rigorous and brand‑oriented approach to management. Kohl’s, on the other hand, is a retailer that mostly sells other companies’ merchandise and operates in the challenged department store sector. That experience is now proving vital as Gass pushes Levi’s to open more of its own stores and rely less on other retailers.
For another, Kohl’s needed a turnaround CEO, whereas at Levi’s, Gass inherited a company turned around years earlier by Bergh but where her zest for innovation and experience in running stores could help Levi Strauss grow at a critical juncture in its long history. (Gass has made selling more tops, more women’s products, and more high-end denim her priorities, and Tuesday’s earnings report shows the plan is working.)
“I feel like coming into Levi’s, I could tap into all of that when it was ready for its next chapter, which was turning the company into a retailer and bringing that capability to bear,” she told me.
To be fair, at Kohl’s, Gass was forced into four battles with activist shareholders in her final years, siphoning her attention and energy. Since she left, Kohl’s has had three CEOs, none of whom have made a big dent in the company’s problems.
I think often about why an executive might do well in one place and struggle so much elsewhere. Perhaps, some CEOs are better suited for turnarounds (which require a very specific skillset) and others for expansion. Or some might be in the right place at the right time and get too much credit for success, or, conversely, get blamed for being unable to fix an unfixable company. In Gass’s case, the seasoned executive has found a role that aligns with her particular set of retail chops, and for now, Levi’s is stronger for it. Contact CEO Daily via Diane Brady at [email protected]
The post Why CEO Michelle Gass is thriving at Levi’s after stumbling at Kohl’s appeared first on Fortune.
