Levi Strauss Gets A Boost With Changing Waistlines During Pandemic

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Levi Strauss & Co. made a profit and saw revenue soar 156% in the second quarter after a pandemic year in which sweatshirts and yoga pants were preferred over jeans.

But fashion trends weren’t the only drivers of the company’s bottom line. The fluctuation in sizes also played a role.

Levi LEVI,
+1.36%
Chief Executive Chip Bergh cited data during the company’s earnings call showing that 35% of U.S. consumers have seen their waistlines change.

“[S]some is up and some is down. But either way, it creates another reason for people to go out and update their wardrobes, ”he said, according to a FactSet transcript.

Data released in March showed that one in 10 American adults gained more than 50 pounds in the previous year. Forty-two percent said they gained more than expected, an average of 29 pounds.

See: “The Covid 15? If only – this is the weight the average person actually gained during the pandemic

With the rollout of vaccinations and the return of consumers to parties and other events, the need for new clothing is driving sales for clothing vendors and fashion brands.

“The looser and looser cuts account for almost half of sales for men and women in the last quarter, and that’s a pretty big change, especially for women in the second quarter of two years ago.” , said Bergh.

“And as the silhouette of the bottom changes, it also impacts the tops, it impacts the shoes, and it really represents an opportunity to update people’s wardrobes far beyond the bottoms. in denim. “

Levi’s shares rose 1.6% in trading on Friday after the results were announced. Kontoor Brands Inc. KTB,
+ 5.46%,
parent company of jeans brands Wrangler and Lee, saw its shares climb 6.6% in trading on Friday.

Levi shares are up 41.7% year-to-date while the S&P 500 SPX index,
+ 1.13%
gained 16.1% over the period.

The 2021 Reopening Insights report released by buy now-pay later financial services provider Klarna shows that an overwhelming majority (89%) of shoppers plan to refresh their wardrobes as the world begins to return to normal business. More than half (54%) plan to “splurge” on “out” looks.

Also: Raunchy IPO: 5 Things To Know About The Plus Size Retailer As It Hits Public Markets

“As people venture outside, get back to work and play, they want to be their best… and they don’t mind paying to do it,” the report said.

And clothing manufacturers and sellers shouldn’t be afraid to go wild.

“Consumers are tired of the same old, the same old,” Klarna wrote.

“If you have a more eclectic or colorful inventory, make sure it’s in the foreground.”

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