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Levi’s $5.8 Billion in Revenue Highest in 24 Years

Levi Strauss & Co. CEO Chip Bergh says the denim giant is at its strongest point “in decades” after it steered through the pandemic’s worst.

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The San Francisco company overcame supply chain problems, steep logistics costs and labor shortages to beat its internal recovery projections last year. It slightly outperformed 2019 revenues, reaching over $5.8 billion—a 29 percent improvement from 2020 and its highest revenue since 1998, Bergh said in the firm’s annual report.

Levi’s achieved record adjusted gross margins of 57.9 percent by revising its cost structure and refocusing on digital during Covid-19’s early days. Adjusted EBIT margins reached $713 million, up from $181 million in 2020 and $611 million in 2019. “We accomplished this despite the impact of COVID-related store closures and soft retail traffic,” Bergh wrote. “Our structural economics are stronger, the Levi’s brand has grown share globally, and our strategic focus on driving DTC and continuing to diversify the business have driven our results.”

With $737 million in operating cash flow generated during 2021, Levi’s is continuing to invest in technology and infrastructure. It also cashed in on the activewear trend—which is five times larger than denim, and growing more quickly—by shelling out for Los Angeles activewear brand Beyond Yoga. These investments are already delivering the highest return on invested capital in 10 years, allowing Levi’s to return almost $200 million to shareholders in dividends and share buybacks, Bergh said.

The denim business continues to drive the company’s revenue, and Levi’s remains the No. 1 men’s and women’s denim brand worldwide. In the U.S., the largest denim market, Levi’s ranks No. 1 with men and No. 2 with women, and it is gaining wallet-share from consumers ages 18-30—the only brand among the top five to do so. Bergh believes looser silhouettes, mirroring the overall shift in apparel toward more relaxed, casual fits, to rising Gen Z and millennial interest. Doubling down on sustainable messaging, Levi’s launched an advertising campaign around the concept of “Buy Better, Wear Longer,” and elevated its SecondHand offering to attract consumers interest in planet-friendlier purchasing.

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Contact: Mariette Hoitink
mariette@houseofdenim.org

Title:

Stretch yourself: Denim of the future, designed by Gen Z

A denim design exploration by the House of Denim Foundation x Jean School students in collaboration with The LYCRA Company and 7 of the most progressive denim mills in the world.

Amsterdam, April 13, 2022

“Which denim would generation Z design for its generation?” was the question the House of Denim team asked when thinking about the future of stretch denim with The LYCRA Company. Being the co-founder of Jean School, the first and only denim educational institution in the world, the House of Denim collaborated with 30 students of Jean School, Amsterdam, seven of the most progressive mills in the world and The LYCRA Company to answer this question. The most innovative and sustainable stretch denim fabrics of today were the medium. The result: A perspective on the future of denim and an exhibition with 14 designs titled “Stretch Yourself” that will be launched at the denim trade show Kingpins, Amsterdam, on April 20-21.

 

 

 



Education by industry leaders and unrestricted creativity: couture meets casual

All participating students got lectures by The LYCRA Company team and live online presentations by the participating denim mills. The mills sent out their most premium fabrics to the House of Denim and students were free to choose which fabrics they wanted to work with.

Mariette Hoitink, co-founder of the House of Denim, says,”What excited me about this project with Jean School, Lycra, and these seven mills is that we started with an educational segment on sustainability and innovation involving all mills and that we kept it open for the students to design whatever they felt like. The mills provided the students with super special fabrics. The end result ranges from well designed tight and baggy pants to dresses that question gender. Couture meets casual. The title of the exhibition, "Stretch Yourself", really applies; the students worked day and night to come up with the final results and took a totally unexpected take on stretch denim. The whole project reflects diversity and inclusion and supports creativity.”

Amongst the most innovative and sustainable denim mills in the world

Participating mills in “Stretch Yourself” are Calik Denim, Bossa Denim, Orta from Turkey; Naveena Denim Mills and Soorty Enterprises, Pakistan; DNM Denim, Egypt; and Advance Denim, China.

Innovative technologies by The LYCRA Company

Any close-fitting style of jeans or any body-positive garment will need to use a stretch fabric because otherwise, the garment would be uncomfortable and restrict movement. The new generation of innovative, premium stretch denim is redefining comfort and quality. It’s more durable and more sustainable.

The supplied fabrics contained three innovative technologies from The LYCRA Company:

LYCRA® dualFX® technology is a patented fabric construction that boosts the recovery power of stretch denim fabrics so that body-hugging styles retain their shape. It involves two stretch fibers: LYCRA® elastane fiber and LYCRA® T400® fiber to boost that recovery power.

LYCRA® FREEF!T® technology offers easy stretch with high flexibility for flattering, figure-hugging jeans with soft and stretchy comfort. This technology allows for comfort in motion across a wider fit window.

LYCRA® T400® fiber is a co-polymer (bi-component) that generates its own stretch when exposed to heat—it literally coils up like a curly human hair. LYCRA® T400® EcoMade fiber is made from 50% recycled PET bottles and 18% plant-based fibers, giving it a sustainable content of 68%. The fiber is also GRS certified to ensure traceability throughout the distribution chain.

Helen Latham, Sr. Strategic Accounts Manager of The LYCRA Company says, “It is our goal to collaborate with jeans designers of the future in our industry, supporting them to share our innovative technologies. Their inspiration and intellectually fresh ideas inspire us.”

All of the fabrics used in the Stretch Yourself project are available at Denim City for design and sample purposes. After Kingpins, Stretch Yourself will find a home at Denim City, Amsterdam until June 31st.

About The LYCRA Company

The LYCRA Company innovates and produces fiber and technology solutions for the apparel and personal care industries. Headquartered in Wilmington, Delaware, it is recognized worldwide for its innovative products, sustainable solutions, technical expertise, and unmatched marketing support. The LYCRA Company owns leading consumer and trade brands: LYCRA®, LYCRA HyFit®, LYCRA® T400®, COOLMAX®, THERMOLITE®, ELASPAN®, SUPPLEX®, and TACTEL®. Its legacy stretches back to 1958 with the invention of the original spandex yarn, LYCRA® fiber. Today, The LYCRA Company focuses on adding value to its customers’ products by developing unique innovations designed to meet the consumer’s need for comfort and lasting performance.
thelycracompany.com

About the House of Denim

The House of Denim Foundation is an independent, not for profit organization that conceives and initiates collaborative projects to connect and inspire key stakeholders in the denim industry ‘Towards a Brighter Blue’. Its mission is to ‘advocate the good’ by promoting best practices. It ‘collaborates for the better’ by building a network for industry-wide collaboration on standards, projects and resources for a dryer, cleaner and smarter industry. And it ‘educates the best’ by training a new generation of bright blue talent aiming to raise the bar on knowledge, skills and innovation throughout the industry. To name a few initiatives: Denim City Amsterdam (home of the House of Denim Foundation and Jean School) and Denim City Sao Paulo, Global Denim Awards, Denim Days and the Indigo Embassy sessions.
houseofdenim.org

About Jean School

Jean School was founded in 2012 by the House of Denim and ROC Amsterdam and offers a 2-year specialization in Denim Design & Development for fashion students and a 1-year International Course at Denim City. The curriculum of Jean School focuses on development, craftsmanship, innovation and sustainability. Collaborations with leading denim brands and industry experts are part of the program. The result—a unique educational institution with alumni working all over the world. Jean School celebrates its 10th anniversary in the fall of 2022.
jeanschool.com


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