Advertise with fastmoving.co.za
 
 

The 145-year-old company could be valued at $5bn when it debuts, says report.
The 145-year-old company could be valued at $5bn when it debuts, says report.

Levi Strauss files for stock market comeback

RETAILER NEWS

Business Live - Feb 16th, 21:53

Jeans maker Levi Strauss has filed documents to list itself on the New York Stock Exchange, seeking to return to public markets after more than three decades. 

Levi's, one of the world's biggest denim brands and the inventor of blue jeans, faces rapid changes in consumer tastes as people shop for cheaper store brands and athleisure apparel.

Last year, rival VF Corporation said it would spin off its less profitable Wrangler and Lee jeans business into a publicly traded company, allowing it to focus on Vans and its outdoor wear businesses to help improve profit margins.

The 145-year-old company, which intends to list as "LEVI", set a placeholder amount of $100m to indicate the size of the IPO. The final size of the IPO could be different.

The San Francisco, California-based company could be valued at about $5bn when it debuts, a CNBC report said in November.

Levi's is controlled by the descendants of founder Levi Strauss. It is required to post quarterly earnings with US regulators as its Japanese arm, Levi Strauss KK is publicly traded in Tokyo.

In its latest report, the US apparel company said sales rose nearly 9% to $1.59bn. Its filings also show that it has halved its debt load over the past two years.

Levi's sells its products in more than 50,000 retail locations, including about 3,000 standalone stores and shops-in-shops across 110 countries. It sells apparel under the Levi's, Dockers and Denizen brands.

Jane Hali, head of investment research firm Jane Hali & Associates, said it was a good time for Levi's to go public, as jeans — particularly fashion jeans — seemed to be resonating with consumers.

Multibrand specialty retailer American Eagle Outfitters, for instance, has invested heavily in refreshing its jeans collection and has grown its total US jeans market share to 7%, second only to Walmart at 10%, according to a Cowen and Company research note published on January 15.

US teen apparel retailer Abercrombie & Fitch has also noted a growing demand for fashion denim.

"Denim is doing much better than it has in the past and Levi's has the ability to be mass market," Hali said, adding that Levi's will make its stock market comeback with a strong, diversified portfolio under its belt.

With Levi's IPO filing, the company joins a list of high-profile companies seeking to go public this year including ride-hailing companies Uber Technologies and Lyft, photo-posting app firm Pinterest and home-renting company Airbnb.

Goldman Sachs, JPMorgan, BofA Merrill Lynch and Morgan Stanley are part of a 12-member underwriting team handling the IPO.
Business Live 

Read more about: retailer | levis | levi strauss | fashion | brands | apparel

Related News

Food and beverages giant PepsiCo makes offer to acquire Pioneer Foods
19/07/2019 - 10:18
In a vote of confidence about SA’s long-term prospects, New York-based food and beverages giant PepsiCo has made an offer to buy Pioneer Food Group, which makes Sasko breads and Ceres juices, in a deal worth at least R25.4bn.

SAFW competitions offers entry into fashion industry
19/07/2019 - 08:41
It opened the door for David Tlale to showcase his designs at New York Fashion Work, Mmuso Maxwell to supply his garments to retail giant Woolworths and Clinton Lotter to take his work to the UK. Now, South African Fashion Week (SAFW) is once again looking to grow the fashion and creative industry by opening it to emerging designers.

Refinery celebrates diversity with new fashion campaign
18/07/2019 - 11:39
Local fashion retailer Refinery is set to make waves across the local industry with its new spring campaign which embraces diversity, encouraging others to be unashamedly, authentically themselves.

Burberry's new logo-strewn design is a surprise hit
16/07/2019 - 14:49
Strong demand for designer Riccardo Tisci’s new fashion ranges helped revenue at British label Burberry grow faster than expected in the first quarter, sending its shares soaring as a high stakes overhaul showed early signs of promise.

Footgear quick off the mark with acquisition of Edgars Active and High Key from Edcon
16/07/2019 - 10:19
Footgear – backed by Old Mutual Private Equity (OMPE) announced that it has acquired the Edgars Active and High Key chain stores, divisions of the Edcon Group, and leading retailers of branded sport and lifestyle footwear, clothing and accessories. The transaction remains subject to conditions precedent, including regulatory approvals.