Weeks after closing its $400 million acquisition of Beyond Yoga in late September, Levi Strauss and Co.’s fiscal Q3 revenue is up 41% year-over-year to $1.5 billion.
Levi CEO Chip Bergh forecasts Beyond Yoga will add $100 million in revenue next year as a standalone division — Beyond Yoga has more than doubled in revenue and profitability in the last three years.
- With the addition of the athletic wear brand and preparation for upcoming holidays, Levi estimates inventories will increase by mid-single-digits — inventories in Q3 were down 4% from 2019.
- Bergh emphasized the opportunities in entering the $50 billion performance athletic category, which he says is five times bigger than the total jean category.
- Acquiring Beyond Yoga will help Levi attain its goal of getting its women’s business to account for 50% of sales. Women’s items currently make up one-third of the company’s sales.
Bergh says Levi wants to take Beyond Yoga international, as most of its business is currently in the U.S. and online, and that some of its capabilities regarding “fabrics and fabrication in this more performance-oriented business can help us on the rest of our business.”
Levi has a market value of $9.76 billion and expects fourth-quarter revenue to increase 20% year-over-year.
