Levi Strauss 2021 Investor Call

Levi Strauss aka LS&Co. held an investor call on April 21, 2021. Most of the call involved LS&Co. executives pontificating on politics and social issues. We don't need NBA star Michael Jordan to remind us Republicans buy jeans, too, but LS&Co.'s real problem is political hubris.

Levi's, on Georgia's voter ID controversy: "Voting is not a partisan issue. It is an American issue... Democracy only works if every eligible voter votes... Democracy needs to work around free, fair, and equitable access to the polls. More than 350 bills [are being proposed across the country that intend to suppress voting accessibility]... this proposed legislation is racist. By the way, I've never said anything about voter ID." 

[If you're confused, I don't blame you. Why oppose a proposed law without actually mentioning the specific parts you oppose?] 

Levi's, on gun legislation: "Gun violence in America is tearing the country apart... Over 90% of Americans support background check legislation. Business leaders have a responsibility to serve their customers and their communities." 

[His full response included remarkably specific statistics. In other news, according to a poll I just paid someone to do, over 90% of thinking human beings oppose Levi's giving canned, general answers to complex issues.] 

PETA, an organization against animal abuse, asked about Levi's use of leather patches. Levi's said the majority of its patches are non-leather.

As far as political discussions go, this is top shelf, gold tier gibberish. The person answering questions wasn't an elections lawyer but still assumed familiarity with different states' legislation. Worse, his level of statistical specificity would cause a pessimist (or an astute marketing firm) to believe most of the questions were corporate-sponsored plants--except for the parts lacking sense, such as demurring on voter ID. 

Regarding voting, the Levi Strauss Foundation issued 13 million USD in "grants to organizations and individuals working to protect the civil liberties of vulnerable communities, expand voter participation and access and support the well-being of workers in our supply chain." (pp. 4) 13 million USD should get you better legal advice, but as it stands, Levi's has rendered its corporation into a de facto marketing arm of the Democratic Party, thus alienating about half of the country.

I probably don't have to tell you California, home of Levi's HQ, is a de facto one party state, where every single state political office is controlled by the Democratic Party. If there's one way to guarantee biased feedback, it's living in a politically homogeneous state that deems different-minded people racist. (Michael Jordan, who took a more measured approach, lived in North Carolina, which has wavered between Republican and Democratic state control.) 

"It struck me as notably ironic that Southerners could despise blacks so bitterly and yet live comfortably alongside them, while in the North people by and large did not mind blacks, even respected them as humans and wished them every success, just so long as they didn't have to mingle with them too freely." -- Bill Bryson [The Lost Continent, paperback, pp. 63 (1989)] 

The tragedy of Levi's executive team isn't alleged political bias--it's their obliviousness to the fact their comments overshadow the company's truly admirable actions. For example, Levi's is adapting well to e-commerce. It offers "Buy Online Pickup in Store" as well as "Same-Day Delivery and Appointment Scheduling." Its "ship-from-store capability" is operational in USA and has "expanded to Canada, the United Kingdom and Germany." Levi's direct-to-consumer business--basically, direct online sales vs. direct brick-and-mortar sales--"reached 39% of revenues." Levi's also reduced its CEO's salary "by 50% and other executive salaries by 25% for four months as part of [COVID19] cost reductions and cash saving measures." (pp. 33, proxy statement) There's more to praise, including the company's history catering to blue-collar workers, but why bother, unless you're a Democrat? 

Levi's claims its "brand heritage and authenticity is unmatched." I agree. Absolutely no other apparel company is more authentic when it comes to pablum and group-think. When shoveling political manure, be sure to wear Levi's jeans. For everything else, consider 7 for All Mankind (the most comfortable pair of jeans I own), Wrangler (Brett Favre's jeans), or Columbia's Silver Ridge or Royce Range pants (founded by a German refugee). 

© Matthew Rafat (April 2021)

Disclosure: I own an insignificant number of LS&Co. (LEVI) shares. I also worked as a Levi's contractor in HQ's compliance/legal department. One day, Levi's invited police and the FBI to a recruiting event on its ground floor. After one of the FBI recruiters demanded my name after I mentioned Hoover's spying on MLK, I walked away, then returned to give him an extended one-finger salute. Security escorted me out the same day without an investigator bothering to contact me. Maybe Levi's is politically progressive except when it comes to protecting individuals against the FBI?

What about honesty? During the investor call, Levi's falsely claimed there were no further questions, despite the fact I asked a question. See screenshot below, showing submitted question one minute into the meeting. When I allege some or all of the questions Levi's publicized were planted by a marketing firm, I'm not entirely speculating. I left a voice mail for Levi's attorney Seth R. Jaffe after the investor call, and as of April 26, 2021, I've received no response.  

Bonus: Voting is not as straightforward as it seems. Can someone moving from California to North Carolina vote in an election to be held in one week? Can someone who has had months to register as a voter--allowing the state to verify his or her state residence--just show up to the polls on election day, show ID, and vote? If so, how do poll workers know if the ID is fake? What prevents a non-registered voter from showing state ID and voting multiple times at different voting booths? If registration is required, how many times does a voter need to register? Once or annually? How many months in advance is reasonable to allow a voter to register? What documents does the voter need to prove state residence? Is a utility bill too much? What if the voter rents a private room and does not pay for utilities directly? Does a voter need to prove a substantial impediment before being able to vote by mail? If anyone can register as an "absentee" voter, then does the voter need to mail the ballot individually or can s/he have someone else do it? Is a signature enough to prevent fraud on a vote-by-mail ballot? If so, what prevents community organizers from gathering ballots of local people they assist and doing the voting and mailing for them? Finally, why should the voting procedures of a de facto one-party state like California be anyone's preferred model?

Bonus: civil rights hero Michael Schwerner was wearing blue Wrangler jeans when he was murdered by the KKK. (See MIBURN files, Part 5 of 9, pp. 283)