Levi’s captures global market shift as loose denim styles surge

Consumers are leaning towards trying various denim styles especially in the bottoms category such as baggy and bootcut, as comfort and performance become of paramount importance in today’s fashion world. Michelle Gass, CEO of Levi’s, said during a post-earnings call that in the second quarter, bottoms business grew * per cent, driven by strength in core fits with newness adding incremental momentum.

Levi’s is not just leaning on the denim trend but also has been pushing into categories beyond denim, which has expanded the company’s total addressable market and contributed roughly a third of the revenue growth in the quarter.

“This reflects our strong progress in expanding our assortment for summer, creating more warm-weather head-to-toe offerings for our consumers. We are seeing strength across key summer categories, including lightweight denim, linen shirts and dresses,” Gass said.

Jefferies analyst Blake Anderson said that growth at Levi’s remains broad-based across geographies, channels, and categories, supporting a higher quality topline than the market appreciates and fourth-quarter operating margin percentage should expand by nearly *** basis points, setting up strong expansion into ****.