Levi's sales are dwindling as remote workers opt to wear more comfortable sportswear instead of jeans.
Levi Strauss & Co reported fourth-quarter earnings, showing revenue down 12% over the holiday period. However, this is still a good result compared to the previous quarter, during which revenue fell immediately by 27%. Sales exceeded Wall Street's expectations, CEO Chip Berg said.
However, even as losses become smaller, the future jeans remains unclear as people spend more time at home and more comfortable sportswear becomes more in demand. Instead of "hard pants", buyers are increasingly choosing light and soft "sweatpants".
Interestingly, this process began a long time ago, jeans sales began to decline even before the start of the pandemic. Now there has been a real collapse. Most likely, what is happening today is the end of jeans as casual wear. But at one time, jeans became popular precisely as a comfortable and practical alternative to ordinary trousers.
Consumers around the world are increasingly switching to much more comfortable sportswear, both for wearing at home and on the street. Notably, this trend is particularly pronounced in Asia, where countries have made the most progress in the fight against COVID-19. It is in this region that Levi's there were the greatest losses - 14%.
Levi's still calls itself the world leader in denim. But this title may completely lose its meaning in the eyes of investors if jeans finally lose their status as the most common casual wear.