Levi’s plans to ‘accelerate growth’ by adding 400 new stores and tripling e-commerce

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During its Investor Day on June 1, 2022, Levi Strauss and Co. executives developed an aggressive strategy to propel the company to revenue of $9-10 billion by 2027, doubling the DTC and diversifying beyond denim.

“We are emerging from the pandemic a much stronger and more profitable business than we were when we went public in 2019,” company president and CEO Chip Bergh said in a statement. communicated. “We are entering this next phase of growth with strong momentum, proven execution and a bold strategy to increase profitable revenue growth each year by 6% to 8%expanding our direct-to-consumer business to 55% in turnover and nearly double women’s business.

The company reaffirmed its expectations for fiscal 2022, with revenue expected to reach $6.4-6.5 billion This year. To hit the $10 billion mark next five years, the company plans to increase DTC’s revenue from their 36% from total to 55%. This will be facilitated by 400 new stores, mainly smaller format locations, approximately 100 of which will be in the United States, as well as plans for triple the e-commerce business.

Levi’s also hopes double both its women’s business and its tops in the same time frame, a significant shift for a brand whose heritage is built on denim jeans. The company said it would focus on “elevating and strengthening” its core brands – Signature by Levi Strauss & Co., Denizen, Dockers and Beyond Yoga – with executives targeting combined revenue growth of around $2-2.5 billion for Signature and Denizen, and for the combined revenues of Dockers and Beyond Yoga to reach nearly $1 billion by 2027.

Levi’s also said it will continue to invest in its digital transformation, aiming to automate and digitize key processes to increase customer loyalty, facilitate faster time to market and create a “simplified and productive work environment.” “.

However, this shift to a DTC mentality does not mean the end of Levi’s wholesale relationships. “DTC first doesn’t mean DTC only,” Bergh said in his presentation to investors. “Over the past few years we have been focused on evolving our wholesale strategy and evolving our wholesale footprint and it’s fair to say you will continue to see that evolution.”

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