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Jeans maker Levi Strauss files for stock market comeback

Reuters 

(Reuters) - maker & Co on Wednesday filed documents to list itself on the New York Stock Exchange, seeking to return to public markets after more than three decades.

Levi's, one of the world's biggest brands and the inventor of blue jeans, faces rapid changes in consumer tastes as people shop for cheaper store brands and athleisure apparel.

Last year, rival said it would spin off its less profitable Wrangler and Lee business into a publicly traded company, allowing it to focus on and its outdoor wear businesses to help improve profit margins.

The 145-year-old company, which intends to list as "LEVI", set a placeholder amount of $100 million to indicate the size of the IPO. The final size of the IPO could be different.

The San Francisco, California-based company could be valued at around $5 billion when it debuts, a CNBC report said in November.

Levi's is controlled by the descendents of founder It is required to post quarterly earnings with U.S. regulators as it its Japanese arm, K.K, is publicly traded in

In its latest report, the company said sales rose nearly 9 percent to $1.59 billion. Its filings also show that it has halved its debt load over the last two years.

Levi's sells its products in more than 50,000 retail locations, including about 3,000 standalone stores and shops-in-shops across 110 countries. It sells apparel under the Levi's, and Denizen brands.

Jane Hali, of investment research firm Jane Hali & Associates, said she thinks it is a good time for Levi's to go public, as - particularly jeans - seem to be resonating with consumers.

Multi-brand American Eagle Outfitters Inc, for instance, has invested heavily in refreshing its jeans collection and has grown its total U.S. jeans market share to 7 percent, second only to at 10 percent, according to a research note published Jan. 15.

U.S. has also noted a growing demand for

"is doing much better than it has in the past and Levi's has the ability to be mass market," Hali said, adding that Levi's will make its stock market comeback with a strong, diversified portfolio under its belt.

With Levi's IPO filing, the company joins a list of high-profile companies seeking to go public this year including ride-hailing companies and Lyft, photo-posting app firm and home-renting company

Goldman Sachs, JPMorgan, BofA Merrill Lynch and are part of a 12-member underwriting team handling the IPO.

(Reporting by Aparajita Saxena, and in Bengaluru and Melissa Fares in New York; Editing by and Tom Brown)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, February 13 2019. 23:37 IST
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