2026 is the new 2016. If you've been online at all lately, you've probably heard this idea and seen the throwback playlist and arguments over bringing back skinny jeans. Google searches for 2016 aesthetic spiked to all-time highs this year.So, this trend isn't just living on your feed, it's also showing up in real interest. But what if we analyze this 2016 trend from a market perspective. Let's focus on retail because people have to be buying these skinny jeans from somewhere, right.For investors, this soci ...

2026 is the new 2016. If you've been online at all lately, you've probably heard this idea and seen the throwback playlist and arguments over bringing back skinny jeans. Google searches for 2016 esthetic spiked to all time highs this year.So this trend isn't just living on your feed, it's also showing up in real interest. But what if we analyze this 2016 trend from a market perspective. Let's focus on retail, because people have to be buying these skinny jeans from somewhere, right.For investors, this socia ...

Summary of Levi Strauss & Co. FY Conference Call (September 16, 2025) Industry Overview - The denim category is valued at approximately $100 billion and is expected to grow in the mid-single digits moving forward [3][4] - The casual environment has significantly contributed to the growth of denim [3] Company Insights - Levi Strauss & Co. has been a market leader for 170 years and is focused on expanding the denim category [3] - The company has launched various denim styles, including a looser baggy fit, which currently represents about 15% of their product mix, while skinny and slim fits contribute 20% [4] - The company aims to become a $10 billion entity with a 15% operating margin over the next 12 to 18 months [6] Product Development and Marketing - The introduction of the Blue Tab premium category, inspired by Japanese denim, has been successful in both Asia and the U.S. [4][5] - Collaborations with influencers, such as Beyoncé, have positively impacted brand visibility and sales [5][6] - The company is expanding its Western wear offerings, which have seen increased demand [9][10] Direct-to-Consumer (DTC) Strategy - DTC now accounts for 50% of the company's business, up from 20% when the current leadership joined [12] - The company has experienced 13 consecutive quarters of positive comparable sales [16] - E-commerce has grown from 4% of total business pre-COVID to approximately 12% recently, with a target of reaching 15% [29] Financial Performance and Goals - Gross margin improved from less than 58% in 2023 to over 61% in 2024, driven by higher full-price sales and growth in DTC and international markets [38] - EBIT margins have increased from 9% to mid-11% over the past three years [39] - The company is focused on maintaining SG&A control to drive EBIT leverage [39] Operational Efficiency - The company is transitioning to a hybrid distribution model to improve efficiency and reduce costs [33][34] - Distribution expenses have increased due to e-commerce growth and inefficiencies in older distribution centers [31][32] - The company is working on eliminating unproductive SKUs to make room for new product innovations [24] Future Outlook - The company is confident in achieving its 15% margin target by sustaining mid-single-digit growth and improving gross margins [39] - There is a clear path to reaching $10 billion in revenue, with ongoing discussions about timelines and strategies [42] Additional Considerations - The company is navigating challenges related to tariffs and inflation, which have impacted consumer demand [41] - The leadership is committed to long-term growth and has established a clear path for achieving ambitious targets [42]