Levi Strauss Stock

Levi Strauss & Co. operates as an apparel company worldwide.

Under the company’s Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands, it designs, markets and sells – directly or through third parties and licensees – products that include jeans, casual and dress pants, tops, shorts, skirts, dresses, jackets, footwear, and related accessories for men, women and children around the world. The company’s newest brand, Beyond Yoga, acquired in 2021, is a body positive, premium athleisure apparel brand focused on quality, fit and comfort for all shapes and sizes.

The company’s Levi's Brands business, which includes the Levi's, Signature by Levi Strauss & Co. and Denizen brands, is defined geographically in three reportable segments: Americas, Europe and Asia.

Global Reach

The company’s products are sold in more than 110 countries. The company services its customers through its global infrastructure, developing, sourcing and marketing its products around the world.

The company’s products are sold in approximately 50,000 retail locations worldwide. In the United States, chain retailers and department stores have traditionally been the primary distribution channels for its Levi's and Dockers products. Outside the United States, department stores, specialty retailers, franchised or other brand-dedicated stores and shop-in-shops have traditionally been the company’s primary distribution channels. Levi's and Dockers products are also sold through its brand-dedicated company-operated retail stores and through its global digital business, which includes the company-operated e-commerce sites, as well as the online businesses of its wholesale customers, including those of traditional wholesalers, as well as pure-play (online-only) wholesalers. Beyond Yoga products are sold in the United States primarily through specialty retailers, pure-play wholesalers, brand-dedicated company-operated retail stores and a company-operated brand dedicated e-commerce site. The company distributes Signature by Levi Strauss & Co. and Denizen brand products primarily through mass channel retailers in the Americas, including the e-commerce sites operated by some of its key wholesale customers and other pure-play customers.

The company conducts its operations outside the United States through foreign subsidiaries.

Brands and Products

The company offers a broad range of products, including jeans, casual and dress pants, activewear, tops, shorts, skirts, dresses, jackets, footwear and related accessories. Across all of the company’s brands, pants – including jeans, casual pants, dress pants and activewear – represented 68% of its total units sold in fiscal year 2023. Tops – including shirts, sweaters, jackets, dresses and jumpsuits – represented 26% of the company’s total units sold in 2023. The remainder of the company’s products are footwear and accessories. Men's products generated 64% of the company’s net revenue in fiscal year 2023. Women's products generated 34% of its net revenue in fiscal year 2023.

Products other than denim bottoms which include tops, footwear and accessories and pants excluding jeans – represented 39% of the company’s net revenue in 2023.

Levi's Brand

The Levi's brand epitomizes classic, authentic American style and effortless cool. Levi's is an authentic and original lifestyle brand and the #1 brand globally in jeanswear (measured by total retail sales). Consumers around the world instantly recognize the distinctive traits of Levi's jeans, including the Arcuate Stitching Design and the Red Tab Device. The company’s range of leading jeanswear, other apparel items and accessories for men, women and children is available in more than 110 countries, allowing individuals around the world to express their personal style.

The Levi's brand encompasses a range of products. Levi's Red Tab products are the foundation of the brand, consisting of a wide spectrum of jeans and jeanswear offered in a variety of fits, fabrics, finishes, styles and price points intended to appeal to a broad spectrum of consumers. The line includes the iconic 501 jean, the original and best-selling five-pocket jean of all time. The line also incorporates a full range of jeanswear fits and styles designed specifically for women. Sale of Red Tab products represented the majority of the company’s Levi's brand net revenues globally in 2023. The company offers premium products around the world under the Levi's brand, including a range of premium pants, tops, shorts, skirts, jackets, footwear, and related accessories.

The company’s Levi's brand products accounted for 87% of its net revenue in the fiscal year 2023, approximately half of which were generated in its Americas segment in each of these years.

Signature by Levi Strauss & Co. and Denizen Brands

In addition to the company’s Levi's brand, it offers the Signature by Levi Strauss & Co. and Denizen brands, which are focused on value-conscious consumers who seek quality craftsmanship and great fit and style at affordable prices. The company offers denim jeans, casual pants, tops and jackets in a variety of fits, fabrics and finishes for men, women and children under the Signature by Levi Strauss & Co. brand through the mass retail channel primarily in the United States and Canada. The Denizen brand was introduced in the United States and includes a variety of jeans to complement active lifestyles and to empower consumers to express their aspirations, individuality and attitudes. The Denizen brand is sold through wholesale accounts primarily within the United States.

The company’s Signature by Levi Strauss & Co. and Denizen brand products collectively accounted for 5% of its net revenue in fiscal year 2023 (year ended November 26, 2023).

Dockers Brand

The Dockers brand continues to be the authority on khaki and offers a wide range of apparel and accessories, for men and women, with no compromises in quality – always superior comfort and versatile style. While the brand remains focused on the classic khaki style and its founding principles, Dockers has evolved its offerings to include more variety and appeal to a broader set of shoppers in both their professional and personal lives.

The company’s Dockers brand products accounted for 5% of its net revenue in the fiscal year 2023 and are sold in more than 50 countries.

Beyond Yoga Brand

The company’s Beyond Yoga brand is a body positive, premium athleisure apparel brand focused on quality, fit and comfort for all shapes and sizes. Beyond Yoga promotes body positivity, honoring and celebrating every body from XXS-4X. The company acquires the Beyond Yoga brand in the fourth quarter of 2021.

The company’s Beyond Yoga brand products accounted for 2% of its net revenue in fiscal year 2023.

Business Strategies

The following three ‘where to play’ choices serve as the company’s strategic framework for what it intends to achieve:

Brand Led: The company’s brands are authentic, original and loved by consumers the world over. The company plans to continue elevating and strengthening all of its brands through integrating product, design, positioning, marketing and consumer experience to ensure they are the ‘Center of Culture’.

DTC First: The company’s direct-to-consumer (DTC) channels allow it to showcase the fullest expression of its brands and drive category diversification while also enhancing connections with the consumer. As a result, the company plans to increase investments in its stores and expand its brick-and-mortar retail footprint, with a focus on mainline expansion. The company also plans to continue rolling out and enhancing its in-store and omni-channel capabilities to further elevate the shopping experience. In addition to the company’s DTC initiatives, it also focuses on its wholesale channel, partnering with customers that are focused on delivering high quality results and service to its consumers, while also elevating the company’s Levi’s brand.

Further Diversify Portfolio: The company plans to accelerate growth in international markets, with a focus on high-growth markets. The company plans to achieve growth expectations in under-penetrated parts of its business, such as tops and women's, expanding its addressable market.

Licensing

The appeal of the company’s brands across consumer groups and its global reach enables itto license its Levi's and Dockers trademarks for a variety of product categories in multiple markets globally, including footwear, belts, wallets, bags, outerwear, sweaters, dress shirts, kidswear, sleepwear and hosiery.

The company enters into licensing agreements with its licensees covering royalty payments, product design and manufacturing standards, marketing and sale of licensed products, and protection of its trademarks.

Sales, Distribution and Customers

The company recognizes wholesale revenue from the sale of its products through third-party retailers, such as department stores, specialty retailers, third-party e-commerce sites and franchise locations dedicated to its brands. The company also sells its products directly to consumers through a variety of formats, including its own company-operated mainline and outlet stores, company-operated e-commerce sites and select shop-in-shops located in department stores and other third-party retail locations.

The company seeks to make its products available where consumers shop, providing both in-store and online shopping experiences, as well as offering products that are appropriately tailored for its wholesale customers and their retail consumers. Sales to the company’s top ten wholesale customers totaled 28% of its net revenue in fiscal year 2023.

The company also sells its products directly to consumers through shop-in-shops located in certain of its wholesale customers’ and other third-party retail locations.

Dedicated Stores and E-commerce Sites

The company’s brand-dedicated stores are either operated by it or by independent third parties, such as franchisees. In addition to the dedicated stores, the company maintains brand-dedicated e-commerce sites that sell products directly to consumers.

Company-Operated Brick-and-Mortar Retail Stores: The company-operated retail stores include both mainline and outlet stores generated 29% of its net revenue in fiscal years 2023.

Franchised and Other Stores. Franchised, licensed, or other forms of brand-dedicated stores operated by independent third parties sell Levi's and Dockers products in markets outside the United States. The company considers its network of brand-dedicated shop-in-shops, which are located within department stores and may be either operated directly by it or third parties, to be an important component of its retail distribution in international markets.

E-commerce Sites: The company maintains brand-dedicated e-commerce sites, including www.levi.com, www.dockers.com and www.beyondyoga.com, that sell products directly to consumers across multiple markets around the world.

Seasonality of Sales

The company typically achieves its largest quarterly revenues in the fourth quarter (year ended November 2023). In year ended November 26, 2023 (fiscal year 2023), the company’s net revenues in the first, second, third and fourth quarters represented 27%, 22%, 24% and 27%, respectively, of the company’s total net revenues for the year.

The company typically achieves a significant amount of revenues from the company’s DTC channel on the Friday following Thanksgiving Day, which is commonly referred to as Black Friday. Due to the timing of the company’s fiscal year end, a particular fiscal year might include one, two or no Black Fridays.

The company uses a 52- or 53- week fiscal year, with each fiscal year ending on the Sunday that is closest to November 30 of that year. Certain of the company’s foreign subsidiaries have fiscal years ending November 30. Each fiscal year generally consists of four 13-week quarters, with each quarter ending on the Sunday that is closest to the last day of the month of that quarter. The level of the company’s working capital reflects the seasonality of the company’s business and varies throughout the year to support its seasonal and holiday revenue patterns, as well as business trends.

Marketing and Promotion

The company’s marketing is rooted in globally consistent brand messages that reflect the unique attributes of its brands, including the Levi's brand as the authentic and original jeanswear brand and Dockers brand as the definitive khaki. The company continually strengthens its portfolio of brands and its positioning at the center of popular culture with a diverse mix of marketing initiatives to drive consumer demand, such as through social media and digital and mobile outlets, sponsorships, product placement in leading fashion magazines and with celebrities, television and radio advertisements, personal sponsorships and endorsements, and selective collaborations with key influencers, integrating itself with significant cultural events, and on-the-ground efforts, such as street-level events and similar targeted ‘viral’ marketing activities. The company also connects with sport and music fans across the world, including through the naming rights to the stadium for the San Francisco 49ers, which the company secured in 2013.

The company focuses on strengthening its brands globally. In 2023, its Levi’s mobile app continued to achieve increased engagement with monthly active users up throughout the year and the company deepens its direct, personalized relationships with its consumers through the expansion of its global loyalty programs. Throughout the year, the company delivers product freshness and innovation to the 501 family, from limited-edition product drops like the reimagined 1873 ‘XX Waist Overalls’ (the Levi’s brand’s first blue jeans) to mainline product newness with the Men’s 501 ‘54 and the Women’s 501 ‘81 to new innovations like the company’s Plant-Based 501, a hemp-cotton blend Selvedge 501 and a Circular 501 jean.

The company’s marketing organization includes both global and commercial marketing teams. The company also uses its websites, including www.levi.com, www.dockers.com, and www.beyondyoga.com in relevant markets to enhance consumer understanding of its brands and help consumers find and buy its products.

Intellectual Property

The company has more than 6,200 trademark registrations and pending applications in approximately 180 jurisdictions worldwide. Substantially all of the company’s global trademarks are owned by Levi Strauss & Co or its wholly-owned affiliates. The Levi's, Dockers, Beyond Yoga, and 501 trademarks, the Arcuate Stitching Design, the Tab Device, the Two Horse Design, the Housemark and the Wings and Anchor Design are among the company’s core trademarks.

The company protects these trademarks by registering them with the U.S. Patent and Trademark Office and with governmental agencies in other countries, particularly where its products are manufactured or sold.

The company is pursuing over 350 infringement matters around the world.

As of November 26, 2023, the company had 65 issued U.S. patents, 15 issued foreign patents and 48 U.S. patent applications pending. Its patents expire between 2025 and 2042. The company also had 29 international and foreign patent applications pending. The company will continually assess the ability to patent new intellectual property as it develops technologies that are innovative, such as the company’s F.L.X. technology.

History

Levi Strauss & Co. was founded in 1853. The company was incorporated in Delaware in 1970.