Levi’s cinches up to showcase its denim

Katy Perry, the pop superstar, made an appearance at the Coachella music festival in the Colorado desert in California last weekend. The American singer was there to support her best friend, Mia Moretti, who was making her debut as a disc jockey. To close out the famous musical event, Perry went to see rapper Doja Cat dressed in a black jumpsuit and ultra-baggy jeans that barely clung to her hips. The return of 2000s fashion is evident with the resurgence of baggy pants, as noted by popular fashion magazines like Vogue, Marie Claire, Glamor, and InStyle.

Jeans, with their timeless appeal and ability to be recycled regardless of trends, are said to never go out of style. However, one of the iconic denim brands, Levi Strauss & Co., is going through a period of significant transformation. With over 170 years of history, the company is restructuring to strengthen its brand and retain a consumer base that has a growing number of choices in the market. Levi’s is focusing on two key items of clothing—baggy pants and denim skirts—which will be at the forefront of their product offerings in the midst of these changes.

The demand for Levi’s products, particularly led by women, has exceeded expectations, leading to an increase in sales of jumpsuits, flared pants, and low-rise pants. After a decline due to the pandemic, there has been a resurgence in the popularity of jeans, with the iconic 501 pants selling 11% more last year compared to the previous year. Levi’s biggest initiative, Project Fuel, aims to increase the efficiency and agility of the business, as highlighted by the company’s president, Michelle Gass.

As part of the restructuring efforts, Levi’s made some sacrifices by implementing layoffs, primarily focused on corporate positions, which resulted in a 12% reduction in office workers. Despite incurring restructuring costs, the company’s financial results have exceeded market forecasts, with a significant increase in the company’s shares following the announcement of the changes. Levi’s is optimistic about returning to growth in the second half of the year, with a focus on customer experience and expanding their international presence.

Levi’s recent agreement with a Colombian family business and the success of their regional clusters demonstrate the company’s commitment to growth and expansion outside the United States. With Beyoncé’s recent album featuring a duet with Post Malone titled “Levi’s Jeans,” the brand is poised to capitalize on the opportunity for increased sales and visibility. Levi’s shares have already appreciated this year, reflecting a positive trend in the market for the century-old denim brand.