Fashion’s love affair with denim has come back in full swing and has taken over our wardrobes and social media feeds. You’d think that with this boom Levi’s jeans would be at the top of everyone’s shopping list…
Well, it’s kind of complicated.
Despite being synonymous with denim, Levi’s is struggling to capitalize on this trendy moment.
So what’s holding the company back?
The Year Of Denim
It’s no secret that in the trend cycle, denim has completely taken over. Fashionistas everywhere are experimenting with denim-on-denim, jean skirts and dresses, and bedazzled pieces.
But it’s not just Gen Z influencers who have embraced the trend, it is seeping through every part of pop culture, with Beyonce featuring a song on her most recent album titled “Levii’s Jeans”…
To the fabric appearing on the Met Gala…
And a general resurgence in ’90s/Y2K fashion contributed to denim barrelling back into style.
Now crowds can’t get enough of denim and retailers are reaping the rewards. Both American Eagle and Abercrombie And Fitch shares are BOOMING thanks to the trend…
This is especially big for Abercrombie Stock as the company is experiencing a MAJOR comeback.
BUT LEVI’S AND ITS SHELVES FULL OF JEANS CAN’T SEEM TO MEET THE HYPE. SO WHAT’S THE ISSUE?
During the company’s earnings report, Levi’s revealed good results for its last quarter…
But not as good as industry analysts had hoped. As a result, Levi’s stock dropped 15%.
Executives blame the issue on poor performance at Docker’s, the company’s business-casual brand, and the economic woes in China.
The bigger issue however is Levi’s balancing new trendier styles of jeans with the classic looks the brand is known for. The company is worried about steering too far from its regular offerings…
But they’re also missing a huge new audience by falling behind on the denim trend.
Thankfully, Levi’s has a plan of action for its jeans.
Can Levi’s Jeans Dominate The Industry?
Back in 2020, the company revealed plans for a new direct-to-consumer restructuring of its business model.
This new plan includes building 400 new stores and tripling its online sales. This new initiative is in part due to the instability of traditional wholesalers like Nordstrom and Macy’s.
Not only that but the new CEO of the company, Michelle Gass, has set her sights on following the latest trends…
And aims to add more looks that consumers are searching for to their lineup.
And it’s working! Levi’s new trendier styles like jean skirts and dresses have tripled in sales. Baggy jeans now make up half of Levi’s bottoms assortment. This new shift in offerings has been especially successful among women.
BUT SOMEHOW, LEVI’S IS STILL MISSING THE MARK MOSTLY WHEN IT COMES TO YOUNG SHOPPERS.
While Gen Z is propelling the denim come-back trend, they are still extremely price-conscious shoppers. To younger fashion enthusiasts, it doesn’t make sense to buy a new $100 pair of Levi’s jeans…
When they could get them through resellers or thrift stores.
Levi’s has tried to lure younger customers back to their jeans with sustainability promises and more deals…
But it just isn’t enough.
The Future Of Levi’s
All things considered, Levi’s is still standing strong in the jean business…
But if they don’t accommodate to meet the trends, they run the risk of missing out on this giant cash grab.
While Levi’s has a lot to gain here…
One wrong move and they’ll have a lot more to lose.
Be Great,
GCTV Staff
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