In a recent surge influenced by popular culture, Levi Strauss has seen a notable increase in sales of denim dresses and skirts. The company’s CEO, Michelle Gass, attributes this growth to the rising trend of Western wear, which has captivated consumers’ fashion choices. On Wednesday, the 171-year-old company reported its quarterly earnings, highlighting the impact of this cultural shift.
“Western wear’s popularity is at an all-time high,” Gass told analysts during the earnings call. This trend, popularized by celebrities like Beyoncé, who references denim in her latest album, and Taylor Swift’s Eras Tour, has led to a significant boost in sales for Levi Strauss. The trend has also been fueled by a new fashion line from Louis Vuitton, further embedding Western style into mainstream fashion.
Gass, who became CEO of Levi Strauss earlier this year, emphasized that denim’s resurgence extends beyond the company’s classic blue jeans. Sales of denim skirts, jumpsuits, and dresses have more than doubled in the latest quarter, with a particularly strong performance in Western shirts, especially among female consumers.
“Our strategy now focuses on dressing customers in denim from head-to-toe,” Gass explained on CNBC’s “Mad Money.” This approach represents a shift for the company, which has historically seen smaller sales volumes in the denim skirt and dress categories. However, these segments are now experiencing explosive growth.
Despite the positive trend in denim sales, Levi Strauss faced a 15% drop in stock value on Thursday, its second-worst performance since going public in early 2019. The company posted $1.44 billion in revenue for the fiscal second quarter, slightly below analysts’ expectations of $1.45 billion, due to unfavorable foreign exchange rates and weakness in the Dockers brand. However, Levi Strauss exceeded earnings expectations, reporting 16 cents per share, excluding items, compared to the 11-cent average estimate by analysts.
Year-to-date, Levi Strauss shares have risen over 18%, outpacing competitors like Kontoor Brands, which has seen a 5% increase. This growth reflects the broader market enthusiasm for denim and Western wear.
