Skinny jean nostalgia... in a mom jean era. Wall Street's blue-jean baby Levi Strauss unzips earnings on Wednesday. Levi's most recent earnings were a solid improvement from 2020, when WFH sweats replaced denim. Last year, Levi's sales were up 29% while profit 6X'd as it focused on high-margin direct sales (think: Levi's site vs. Nordstrom's). While the leggings life is still thriving (see: Lulu earnings), Levi's is tapping into the soft-pant trend with looser, stretchy fits. We'll see if Gen Z’s love of high-waisted baggy jeans helped Levi's growth.
Inflation in aisle 5… Pantry powerhouses like Kraft and Kellogg have hiked prices as costs surge. Now shoppers are snagging what they can afford, even if it means ditching name brands for cheaper private labels. According to a mid-pandemic survey, 70% of US shoppers said they’d tried new brands during Covid. It’s a worrying sign for household names that depend on consumer loyalty. We’ll get a peek at how some are doing this week when Conagra (Banquet pizza, Reddi-Wip), Simply Good (Quest Bars), and Constellation (Corona, Modelo) all report.