Jeans giant Levi’s is pushing back its sales targets
Maybe Beyoncé can help the brand?
Levi Strauss is making some material changes — including resorting to plan Bey — in an effort to win back consumers following years of disappointing sales results.
New CEO Michelle Gass, appointed earlier this year, told the Financial Times that the company's existing revenue target of hitting $9-10 billion by the year 2027 would need to be pushed back, explaining that there’s been “a lot of disruption in the industry” since those goals were set in 2022.
Despite a relative bounce-back from the pandemic — jeans survived the shift to “comfort”, after all — the retailer’s revenues have since stagnated at ~$6 billion. And profits have tumbled: net income fell 56% to $250 million for the year to Nov 2023, continuing a long history of meagre sales growth.
Still the biggest name in the denim game, Levi’s has had to weather stiff competition in recent decades. This has squeezed its profit margin, which fell to a tight ~6% last year. Nonetheless, the success of the company’s direct-to-consumer segment will see hundreds more Levi’s stores open in the next few years in a bid to get back to growth.
Add to Carter
Gass also outlined her plan to reposition the brand to appeal to more women — who, today, only account for roughly one-third of Levi’s sales.
Indeed, Levi’s is trying to tap into its icon status to attract a broader range of customers. After featuring in a song title in Beyoncé’s latest album Cowboy Carter, Levi’s teased a collaboration with the superstar in an Instagram post yesterday… and tomorrow, Paris’ Le Marais district will see the opening of a ‘Haus of Strauss’ retail space, featuring made-to-order jeans that are set to cost some €595 ($663).
Go deeper: Why America Still Loves Jeans.
