• by Sarah Mahoney , October 4, 2024

With a promise of renewing its commitment to the Levi’s brand, Levi Strauss & Co. says it is exploring ways to shed Dockers, the khaki-driven Dad pants label it introduced back in 1986. Part of that focus is adding some significant firepower from Beyoncé, launching a new campaign starring the denim-loving superstar.

The company reported healthy growth in the core Levi’s business for the third quarter, with a 5% increase in brand sales -- its best performance in two years. Those gains have been driven by strong direct-to-consumer transactions and outsized gains in women’s products.

Overall, however, net revenues came in basically flat at $1.5 billion, and the company issued a more subdued forecast. It is also exploring strategic options to shed Dockers and working with Bank of America to evaluate alternatives. That move, says Michelle Gass, chief executive officer, will help it focus more fully on the company’s hero brand and Beyond Yoga, a recent addition to the portfolio.

Sales of Dockers, which have been struggling for some time, dipped 15% in the third quarter. Revenues for Beyond Yoga increased 19%.

Net income climbed to $ 20.7 million, up from $9.6 million in the same period last year.

“We are making progress against our strategic priorities, including double-digit growth in our direct-to-consumer business, continued positive performance in the U.S., and Europe inflecting to growth,” says Gass in the release. “Looking to the fourth quarter and beyond, we will amplify our focus on the Levi’s brand, exemplified by our new campaign with Beyoncé and an innovative product pipeline designed to build momentum with our fans around the world.”

Gass joined Levi Strauss as president from Kohl’s in 2023 and stepped into the CEO spot earlier this year.

The Beyoncé campaign, called “Reiimagine,” kicked off this week with a remake of a classic 1985 Levi’s spot and is already racking up millions of online views. The performer shucks off her jeans in a laundromat. Instead of “I Heard It Through The Grapevine,” which powered the first version, this one relies on “Levii’s Jeans,” from her recent “Cowboy Carter” album.

In addition to TV, the campaign includes out-of-home, digital, social media, print, brand activations and exclusive products, and kicked off with digital projections in San Francisco, Houston, Chicago, New York, Atlanta, Paris, London and Berlin. TBWA\Chiat\Day LA is the agency.

“My song ‘LEVII’S JEANS’ celebrates what I believe is the ultimate Americana uniform — something we all wear with pride,” said Beyoncé in a press release announcing the campaign. “I am honored to work with Levi’s to create quintessential American iconography. Denim on denim has often been seen through a male lens, so this reimagining campaign, which celebrates the iconic female perspective, is important to me.”