–Written by Fernando–
Levi Strauss ($LEVI) has been the biggest name in jeans and denim for as long as I can remember and I’m sure this is true for past generations. They are truly the standard in their industry and why I feel like it’s a great long term bet. The company is almost 170 years old and has maintained this high status in denim since the early 1900s with some financial bumps in the road as it naturally reacts poorly to tough macroeconomic situations. Besides the economic bumps Levi’s has shown very steady growth year after year.
When talking about the sales of denim/jeans, Levi Strauss is by far the highest seller in denim and will likely continue for a lot more decades considering they are affordable and high quality. $LEVI also started expanding with their newer, more affordable, brands Signature and Denizen that are selling exclusively at Target ($TGT) and Walmart ($WMT). Levi’s also has lifestyle brands that I believe have a lot of room for improvement like their non denim items and their new yoga line. Not only have they been competing with the cheaper options but also against the more expensive with their new premium line. Their closest competitors in North America, Lee and Wrangler, both under Kontoor Brands ($KTB), and The Gap ($GPS), are still very much behind Levi’s in denim sales.
Recently Levi’s has been advertising longevity with their denim and have even been opening some premium tailor shops to customize or repair your Levi’s products. Moves and improvements to the brand like this show constant growth and care for customer satisfaction which is often overlooked by companies like The Gap ($GPS).
Levi Strauss is a very well structured and diversified clothing company. They have grown by having affordable and high quality denim. Their other brands that have also proven successful like Dockers show this. I think their future is much bigger than expected from a lifestyle clothing brand. With Levi’s having gone public recently in 2019 and at a very reasonable price I see this as a very good long term bet. I really like this stock but don’t take my word for it, please always do your own DD before making any investment decisions.