Levi’s CEO Michelle Gass indicates that robust international operations mitigate tariff effects.

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In a Thursday interview with CNBC’s Jim Cramer, Levi Strauss CEO Michelle Gass reviewed the apparel maker’s most recent quarter and explained that strong business abroad helps shield the company from the effects of new U.S. tariffs. “We are competitively positioned better than most as it relates to tariffs,” Gass said. “Number one, 60% of our business is international now.”

Gass noted that the denim retailer has “assumed tariffs” in the guidance for the most recent quarter — 30% from China and 10% from the rest of the world. She also emphasized that Levi’s exposure to China is minimal. The company has longstanding relationships with vendors, and since business is growing, Levi’s is able to provide them with more volume.

“And then, we also are looking at our own costs, and we’re taking part of it too,” Gass said. “We’re doing everything we can to protect the consumer and protect our price points.”

Levi’s posted earnings after the bell on Thursday, managing to comfortably beat Wall Street’s expectations. The company also raised its full-year guidance, citing strong demand. Shares surged more than 7% in extended trading.

According to Gass, the Levi’s brand is “on fire” in Europe, naming Paris, Barcelona, and Milan as key markets — particularly among younger consumers. Gass highlighted that the brand is 170 years old and has an “incredible foundation,” but it must continue to drive relevance. She noted that social media plays a significant role in attracting younger consumers, mentioning that the company has campaigns at music festivals and sporting events.

“Younger shoppers, in particular, today, they are learning and discovering brands in all kinds of places,” Gass said. “And we’ve got to show up where they’re engaging.”

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