Levi’s hits record high thanks to the denim revival

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The iconic denim company reported revenues and sales after Thursday’s closing bell that exceeded Wall Street forecasts. Shares of Levi Strauss LEVI, which went public in 2019, rose more than 3% on Friday to hit a new all-time high. The stock is up nearly 30% so far this year.

While overall sales were down due to store closings linked to the Covid pandemic, the company said digital sales are up more than 40% and now account for more than a quarter of total sales.

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Levi Strauss CEO Chip Bergh said on a conference call with analysts on Thursday that a “denim resurgence” is boosting his business and the entire casual apparel industry.

Bergh said the “continuing trend towards casualization” is leading more consumers to buy jeans – even though more people are getting vaccinated against Covid-19 and going out more.

That’s one of the reasons the company issued guidance for the current quarter that was also better than what analysts expected.

“What we’re seeing is a combination of a lot of pent-up demand from people stuck at home and huddled up and not really doing a lot of shopping, combined with an exuberance of economic stimulus here in the US,” Bergh said. analysts told.

“I feel much more confident today than I did a month ago about our ability to weather this pandemic in a much stronger position,” he added.

Bergh also said sales in China are recovering. He pointed out that the company’s flagship store in Wuhan is back at pre-pandemic sales levels.

The global surge in denim demand is good news for Levi Strauss’s rival Kontoor Brands KTB also. Shares of the owners of the Lee and Wrangler brands are up more than 35% this year.

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