In their most recent earnings calls, both Guess, Inc. (NYSE:GES) and Levi Strauss & Co. (NYSE:LEVI) reported solid financial results. Guess wrapped up its fiscal year with fourth-quarter revenues of $891 million, up 2% year-over-year, and delivered an adjusted EPS of $1.56. Levi Strauss, reporting Q1 fiscal 2025 results, posted $1.53 billion in revenue and adjusted EPS of $0.38, both ahead of expectations. Both companies highlighted strong performance in their direct-to-consumer (DTC) segments and effective margin management amid a complex retail environment.
Yet, when it came to discussing technology strategy and digital investments, the two companies took markedly different approaches.
Guess devoted meaningful time during its earnings call to outline how it’s leveraging AI, digital infrastructure, and ERP systems to optimize operations and improve customer engagement. Levi Strauss, in contrast, touched only briefly on digital themes like Direct-to-Consumer (DTC) performance, without elaborating on the underlying technology or future IT initiatives.
This difference in transparency and emphasis offers interesting insight into how each company views the strategic role of technology in its long-term growth.
Why It Matters: Visibility into a company’s tech posture is essential, not just to evaluate performance, but to understand competitive positioning. Guess’s willingness to detail its use of AI-driven pricing tools, ERP upgrades, and omni-channel investments reflects a tech-forward, execution-focused mindset. Levi Strauss may very well be investing in similar initiatives, but its lack of commentary leaves a gap in understanding. In a market where digital transformation often defines brand loyalty, supply chain resilience, and operational efficiency, how and how clearly a company talks about technology can be as important as the tech itself.
- Strong Financial Results: Guess reported a 2% increase in Q4 revenue to $891 million and full-year EPS of $1.56, citing disciplined cost management and strategic expansion. Levi Strauss saw a 3% revenue rise in Q1 to $1.53 billion and achieved a record gross margin of 62.1%, driven by favorable brand and channel mix.
- AI and Data-Driven Pricing: Guess directly addressed its use of artificial intelligence to support pricing strategies. CEO Carlos Alberini said, “We are testing advanced analytics and AI-driven pricing solutions to optimize margins and better align with customer demand patterns.” Levi Strauss made no mention of AI, analytics, or similar decision-support technologies in its Q1 earnings call.
- Digital Infrastructure and Omni-Channel Focus: Guess emphasized building a “digitally enabled business,” with specific mention of tech investments to enhance inventory visibility and customer engagement. Levi Strauss spoke of DTC growth and omni-channel performance in general terms but without outlining specific digital initiatives or systems.
- Enterprise IT Systems: Guess highlighted progress on ERP implementation in Europe, with CFO Mark Breitbard noting it is “foundational for future scalability and efficiency.” Levi Strauss did not mention ERP, back-end upgrades, or IT systems, leaving its infrastructure evolution unclear.
- Clarity of Tech Vision: Guess communicated a clear, multi-faceted digital strategy spanning front-end and operational technologies. Levi’s commentary focused on business outcomes like margin gains and DTC growth, with little detail on the technological enablers behind those metrics.
Go Deeper -> Guess?, Inc. Earnings Call Transcript – MarketBeat
Levi Strauss & Co. Earnings Call Transcript – MarketBeat
