This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Dive Brief: Levi Strauss & Co. is pushing back the expected completion date for its U.S. distribution network overhaul to the end of 2026, executives said on a Jan. 28 earnings call. EVP and Chief Financial and Growth Officer Harmit Singh said a transition to a third-party run facility “has taken longer than we expected,” necessitating the delay. The f ...

Core Viewpoint - Levi Strauss is shifting its focus from jeans to tops and non-denim clothing for sales growth this year [1] Company Summary - Levi Strauss, traditionally known for its jeans, does not expect jeans to be the primary driver of sales growth in the current year [1] - The company is planning to increase its reliance on tops and other clothing items that are not made from denim [1]

Core Insights - Levi Strauss & Co. is recognized as one of the 14 Best Mid-Cap Dividend Stocks to buy currently [1] - UBS has raised its price target for Levi Strauss to $33 from $32 while maintaining a Buy rating [2] - Raymond James initiated coverage with an Outperform rating and a price target of $26, highlighting Levi's steady mid-single-digit revenue growth potential [3] Financial Performance and Growth Drivers - Analysts from Raymond James expect Levi's EBIT margin to improve, supporting earnings growth in the high-single-digit range [3] - The direct-to-consumer segment is identified as a key growth driver, bolstered by new store openings, enhanced productivity, and ongoing digital expansion [3] Product Strategy and Market Positioning - Levi plans to expand its premium denim offerings, including a new $300 jeans line, to capitalize on strong demand for higher-end products [4] - The premium Blue Tab collection, featuring higher-quality jeans and shirts, has been introduced in various stores across Europe and the US [4] - This strategy aims to elevate the brand and attract a broader customer base, particularly targeting more women shoppers [4]

Denim fashion is shaped by both the past and the trends emerging from the street. Long before a pair of jeans reaches the store, however, it is influenced by mill-level decision makers who must weigh global economic conditions, raw material availability, and a range of unpredictable forces. As denim manufacturers apply the lessons learned from 2025—a year marred by shifting trade policies and slowing economies—to future products, consumers can expect to see these decisions in the type of fibers used in je ...

Core Insights - The Greensboro, N.C.-based company anticipates offsetting tariff impacts over a 12-to-18-month period through price increases, supply chain optimization, and other initiatives [1] - Kontoor Brands is implementing tariff mitigation strategies, focusing on controlling internal factors to navigate disruptions [3] - The mood in the denim industry has fluctuated due to tariffs and political changes, affecting business confidence and order volumes [6][7] Company Strategies - Companies like Guess Inc. expect minimal margin impacts from tariffs, with Guess projecting less than $10 million in year-over-year tariff impact [5] - Levi Strauss & Co. reported record gross margins, indicating successful offsetting of tariffs while maintaining top-line momentum [8] - U.S. Denim Mills noted a more active season despite cautious planning from clients, emphasizing durability and versatility in product offerings [10] Industry Trends - The denim industry is experiencing a strategic and agile approach from suppliers, focusing on innovation and partnerships to navigate uncertainty [9] - The closure of Vidalia Mills highlighted challenges in U.S. denim manufacturing, with significant financial implications and interest in acquiring historic looms [17][20] - Mount Vernon Mills announced a partnership to acquire and relocate historic looms, planning a phased rollout of denim production starting in 2026 [21][22] Consumer Engagement - Denim brands continue to leverage celebrity endorsements in marketing campaigns, with notable collaborations from Wrangler, Levi's, and Gap [11][12][13] - American Eagle's controversial campaign sparked significant public debate but ultimately increased customer awareness and engagement [14][16]

Core Insights - Apparel sales in the U.S. have shown resilience, rising every month except February, with increases of 6% or more in some months through October compared to the previous year [2] - Major apparel retailers like Gap Inc., Urban Outfitters, Abercrombie & Fitch, and American Eagle Outfitters reported Q3 results that exceeded analyst expectations [2][6] - Certain brands, such as Gap, Old Navy, and Anthropologie, experienced double-digit growth in popularity and social media attention, while others like The North Face and Nike saw declines of 20% or more [3] Sales Performance - Black Friday sales were strong, with high-single-digit growth in online sales and modest increases in store traffic, despite concerns over consumer spending due to rising living costs [5] - Analysts noted that U.S. consumers are still willing to spend during key shopping periods, which has positively impacted apparel sales [6][7] Pricing Strategies - Retailers are maintaining price levels despite expectations for holiday promotions, with apparel prices higher than the previous year, including increases of 2% for handbags and 8% for women's apparel [7][8] - Brands like Levi's and Ralph Lauren have either maintained the same promotions or reduced discounts compared to last year, indicating confidence in their business strategies [9] Consumer Behavior - The current consumer behavior reflects a post-pandemic trend where individuals are refreshing their wardrobes, moving away from a focus solely on activewear and athleisure [8] - The cautious approach of businesses in protecting their margins is supported by robust sales, suggesting a strong consumer tolerance for higher prices [8]

Core Insights - The article discusses the historical significance and evolution of denim, particularly focusing on the invention of riveted pants by Jacob Davis and Levi Strauss, which led to the creation of blue jeans, a garment that has become a global symbol of American culture [2][4][19]. Industry Overview - The global denim market has reached $101 billion in 2023, reflecting a 28% increase from 2020, indicating strong demand and growth in the sector [4]. - Major apparel companies, including American Eagle and Levi Strauss, are competing to capture market share, utilizing celebrity endorsements to attract consumers in a challenging economic environment [4]. Historical Development - Jacob Davis's invention of riveted pants in the early 1870s marked the beginning of blue jeans, which were initially designed for durability in work settings [2][11]. - Levi Strauss partnered with Davis to patent and manufacture these pants, leading to widespread distribution across the United States [6][8]. - Over time, denim transitioned from workwear to casual attire, gaining popularity in leisure settings post-World War II, and eventually becoming a staple in everyday fashion [15][19]. Cultural Impact - Denim has democratized fashion, appealing to all social classes and becoming a significant cultural export associated with American Western culture [3][19]. - The evolution of denim styles, including the introduction of women's jeans in 1934 and the rise of designer jeans in the 1970s, reflects changing societal norms and fashion trends [12][19].

Core Viewpoint - American Eagle's stock surged after the company raised its sales forecast, driven by increased traffic from its successful marketing campaigns, particularly the viral Sydney Sweeney jeans advertisement [1][2]. Financial Performance - The company's stock has increased by 136% over the past six months, with a 50% gain in the last month and a 19% rise in the last five days [2]. - Revenue for the third quarter rose by 6%, with total comparable sales increasing by 4% [6]. - The fourth quarter outlook has been raised, expecting comparable sales growth between 8% and 9%, significantly higher than analysts' estimates of 2.2% [2][6]. Marketing and Campaigns - The "Great Jeans" advertisement featuring Sydney Sweeney, released in July, has been a key driver of the recent stock performance [2]. - The company also engaged in a high-profile campaign with NFL star Travis Kelce's Tru Kolors clothing brand [2]. - The CEO emphasized the positive impact of marketing strategies and noted record-breaking customer acquisition and brand awareness across demographics [12]. Leadership and Strategy - CEO Jay Schottenstein expressed satisfaction with the positive trend in the business, attributing it to decisive actions in merchandising, marketing, and operations [3]. - Despite controversy surrounding the Sweeney ad, Schottenstein defended the campaign, stating that the company stands by its marketing decisions [11].

Core Insights - Denim Deal is expanding its influence in France with the addition of French brand Kiabi, which aims to enhance collaborative efforts in sustainable denim production [1][2][3] Group 1: Membership and Commitment - Kiabi's membership in Denim Deal signifies its commitment to sustainable sourcing and the goal of achieving 100% sustainable fibers by the end of the year [2] - The brand emphasizes its intention to actively participate in Europe's industrial transformation and to promote measurable circularity in denim production [3] Group 2: Industry Goals and Collaboration - Denim Deal aims to produce 1 billion pairs of jeans with at least 20% post-consumer recycled cotton by 2030, involving over sixty organizations from ten countries [3] - The organization hosted events in Paris and Lille to showcase circular business models and discuss the commercial viability of circular ambitions [4][5] Group 3: Expansion and Global Reach - Denim Deal has expanded its operations to India through partnerships aimed at enhancing textile sustainability [6]

Market Trends & Dynamics - Denim is experiencing a resurgence, with the jeans market growing by 27% between 2020 and 2025 [5] - Celebrity endorsements and marketing campaigns are key strategies for retailers to capture consumer attention, particularly among Gen Z and Alpha [3][14] - Brands are seeking to reclaim cultural relevance and reverse sales slumps through partnerships and innovative campaigns [13][14] - The denim category is experiencing secular tailwinds, creating opportunities for multiple companies to succeed [28] Company Performance & Strategies - Levi's partnership with Beyonce exceeded expectations, driving top-line sales and expanding profit margins, with sales up in the high single digits year-to-date [1][23] - Levi's is focusing on becoming a more premium brand by cutting back on discounts, raising prices, and focusing on direct selling strategies [8] - American Eagle's campaign with Sydney Sweeney provided a boost with Gen Z shoppers, but faced controversy [10][16][17] - Gap's partnership with Katseye drove comparable sales up by 7%, more than double analyst expectations [3][21] Financial Metrics & Impact - Levi's partnership with Beyonce generated 43 billion press impressions and over $65 million in media value [21] - American Eagle's operating costs increased by $35 million year-over-year, partly due to spending on celebrity campaigns [15] - Gap's comparable sales rose by 7% due to the Katseye campaign [21]