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Levi Strauss, famous for its denim, is adding yoga pants to its portfolio.
The iconic brand entered an agreement to acquire Beyond Yoga in an all-cash deal. While terms were not disclosed, Levi expects the activewear brand to contribute more than $100 million in revenue in its next fiscal year.
Levi hopes that Beyond Yoga — which has more than doubled its revenue and profitability in the last three years — will help grow Levi’s women’s division from one-third of sales to its goal of 50%.
Activewear is one of the hottest categories in apparel right now.
- Wolverine announced its $410 million acquisition of Sweaty Betty this week.
- Olympic gold medalist Simone Biles left Nike for Gap-owned Athleta in April.
- Dick’s Sporting Goods launched VRST back in March.
- In February, Target announced that in-house brand All In Motion generated over $1 billion in annual sales.
Levi Strauss CEO Chip Bergh told CNBC that the company has been looking at acquisitions for a while, and sees “enormous growth potential” in the activewear segment.
Beyond Yoga will operate as a standalone division within Levi. Last month, Levi reported $1.3 billion in Q2 revenue.
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