Looks like denim is back in fashion as Levi Strauss and Co (LEVI) just announced its Q3 2021 earnings. The figures show a 41% annual increase in revenues that reached $1.5b. The company beat expectations as its net income saw even more impressive gains, showing a significant six-fold year-on-year increase to $193m.
As restrictions are lifted around the world and everyone’s turning into a socialite, the company’s mid-priced casualwear saw a rise in demand. With a phasing out of skinny jeans, and consumer preferences shifting towards wide-legged, looser fits among Gen Zs, it looks like retro is the new ‘modern.’ Also, due to the growth of e-commerce throughout the pandemic, Levi’s saw net revenues through digital channels surge by 10% YoY and account for a fifth of total revenues, while its diversified supply chain prevented any manufacturing disruptions.
Why it matters
Levi’s seems to be strutting about like a newly-born fashion diva as its stock saw a 9.1% rise as soon as earnings came out. With a 21% YoY revenue increase for Q4 2021 expected, compared to the 7% seen in Q4 2020, its time on the catwalk doesn’t seem to be ending soon.
