Jan 26 (Reuters) – Stories on the loss of life of thin denims have been tremendously exaggerated. A minimum of that is what Levi Strauss & Co (LEVI.N) boss Chip Bergh needs everybody to imagine.
As soon as a wardrobe staple, skinny jean has just lately misplaced favor amongst consumers, particularly after the pandemic accelerated a shift towards snug clothes like dishevelled denims amongst younger shoppers.
High vogue magazines comparable to Elle and Harper’s Bazaar deemed the model “useless” following the revival of silhouettes together with dishevelled denims, boot cuts and bell bottoms.
Nevertheless, Bergh stated the corporate’s top-selling girls’s objects had been the 311 and the 721 – each skinny denims – though half of its income within the bottoms class within the quarter got here from looser and baggier suits.
“The thin jean just isn’t going anyplace anytime quickly,” Bergh stated.
“We’re not fairly to hip-hugger territory but, however the mid-rise jean is sort of the most popular merchandise proper now. I feel we will proceed to see the shift from high- to mid- and possibly even mid- to decrease rises as we go ahead.”
For Levi, its ramped-up efforts to diversify product traces past denim, are set to assist it climate the dip in demand amid inflation woes.
“From my vantage level, Levi’s remains to be a really robust model. And in occasions of volatility, like we’re seeing at the moment, that’d be an excellent alternative for Levi’s to step in and proceed to take share,” Financial institution of America analyst Christopher Nardon stated.
The 170-year-old, San Francisco-based firm on Wednesday topped fourth-quarter gross sales and revenue expectations, forecast annual gross sales forward of Wall Avenue estimates and projected an enchancment in gross margins for 2023. Its shares had been up 6% in premarket buying and selling on Thursday.
Reporting by Deborah Sophia; further reporting by Ananya Mariam Rajesh in Bengaluru; Enhancing by Anil D’Silva
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