Levi Strauss & Co. has reported stronger sales, which only goes to show that denim is on a comeback trail. This is largely due to increased ad spending and high demand. Sales for the second quarter spiked 6 per cent to touch $1.07 billion, as against $1.01 billion in the same period last year, with direct-to-consumer revenues jumping 13 per cent. Net income fell 43 per cent to $18 million, as against $31 million in the same period of the prior year, primarily due to a loss related to debt refinancing.
The San Francisco-based company said increased advertising spending in the quarter, particularly in the Americas, and credits sales gains to its diversification efforts and product innovation such as its dance-stretchy jeans. The strong year-to-date revenue growth reinforces the benefits of a more balanced portfolio as women’s tops, direct-to-consumer and international businesses delivered solid results disclosed their CEO in an announcement.
Innovation—some new stylish or functional twist to trusty denims—seems to be the key to appealing to customers these days, according to latest analysis from the NPD Group. NPD reports that newer styles of women’s jeans—those introduced in the last two years—account for about 70 per cent of all the pants sold in 2016. For men, the majority of jeans were older styles introduced in 2013, or earlier.
Earlier this week True Religion Apparel known for its high-end denim range filed for bankruptcy protection largely due to the growing trend toward e-commerce and fashionistas’ desire for affordable denim from chains like H&M and Zara.
