Levi’s return to the NYSE with an IPO

The US clothing company synonymous for establishing American denim brand and blue jeans will return to Wall Street with a listing on NYSE.

Levi Strauss & Co. has fled for an initial public offering (IPO) on the New York Stock Exchange (NYSE), with the brand looking to profit from the recent resurgence of the denim that has helped the company’s sales soar.

The denim market, which has struggled in the recent past, has finally made a comeback, with the denim market expanding by 4% in 2018 as total retail sales climbed above $100 billion, according to data from Euromonitor.

Levi Strauss sales increase year-on-year

The company has made sure to capitalise on renewed consumer demand for denim, with the business recording strong growth in 11 consecutive quarters in the US market, helping to drive profits and improve its balance sheet with outstanding debt falling from to $1.05 billion, down from $1.97 billion in 2011.

‘We had an outstanding year with reported net revenues of $5.6 billion, growing 14 percent year-over-year on a reported basis,’ President and CEO of Levi Strauss & Co. Charles ‘Chip’ Bergh said about the company’s full-year 2018 results.

‘It’s clear our strategies to diversify our product portfolio, expand our direct-to-consumer business, and deepen our connection with consumers worldwide have worked, resulting in both higher annual revenues and gross margins.’

How Levi Strauss kept its brand on trend?

The brand has stood the test of time since its inception of its famous blue jeans back in 1873, with the company managing to appeal to a new generation of consumer through clever collaborations with Off-White and Re/Done.

According to analysts, another factor that has served Levi’s well is its premium price point, with a typical pair of jeans retailing at just under $100 which considerably more than many mass-market rivals, but a lot less than other premium brands.

Levi Strauss returns to Wall St

This isn’t Levi’s first rodeo, with the its first appearance on the NYSE being back in 1971 where it remained until 1985 after the Strauss family opted to take the company private.

Growth at the company plateaued in the years that followed, with the jean maker succumbing to the pressure of competitors in the burgeoning athleisure market that took hold throughout the 2000s.

But by 2013 the company began to rise once more under the stewardship of CEO Chip Bergh and his new Chief Product Officer Karyn Hillman, who helped modernise the brand, particularly in the designs of its women’s wear.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Spread bet and trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.