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SAN FRANCISCO - In a strategic move to focus on its core business and direct-to-consumer channels, Levi Strauss & Co. (NYSE: LEVI) has reached a definitive agreement to sell its Dockers brand to Authentic Brands Group (Authentic) for an initial value of $311 million. The deal, subject to customary adjustments and closing conditions, also includes an earnout opportunity that could increase the total value up to $391 million, depending on the future performance of Dockers under Authentic’s ownership.
The transaction is set to close around July 31, 2025, for Dockers’ intellectual property and operations in the United States and Canada, with the remainder expected to finalize by January 31, 2026. Levi Strauss & Co. plans to return approximately $100 million of the net cash proceeds from the sale to shareholders through share repurchases.
Michelle Gass, President and CEO of LS&Co., stated that the sale aligns with the company’s strategic priorities, which include a direct-to-consumer first approach, international growth, and investment in women’s and denim lifestyle opportunities. Gass expressed confidence in maximizing the value of Dockers and believes that Authentic is well-suited to drive the brand’s growth.
Authentic’s Founder, Chairman, and CEO, Jamie Salter, noted Dockers’ strong brand recognition and licensing foundation, seeing significant potential for expansion across various categories. Salter acknowledged Dockers’ influence on casual workwear and intends to build on that legacy.
Levi Strauss & Co. will provide certain transition services to Authentic during a limited period following the transaction. BofA Securities, Inc. is acting as financial advisor, and Cleary Gottlieb Steen & Hamilton LLP as legal advisor to LS&Co. for the transaction.
This sale is a part of Levi Strauss & Co.’s broader strategy to evolve into a best-in-class omnichannel retailer, focusing on the Levi’s brand’s expansion from jeans to a denim lifestyle and scaling the Beyond Yoga brand. The company aims to drive long-term, sustainable profitable growth across various categories, channels, and regions.
The information in this article is based on a press release statement.
In other recent news, Levi Strauss & Co. has seen several significant developments. UBS analyst Jay Sole reaffirmed a Buy rating and maintained a $20 price target for the company, following a strong first-quarter performance in 2025, where Levi Strauss exceeded earnings expectations with a $0.10 per share beat. This performance was driven by robust revenue growth and improved gross margins. Meanwhile, Wells Fargo analyst Ike Boruchow upgraded Levi Strauss’s stock rating to Overweight, raising the price target to $20, citing the company’s minimal exposure to tariffs and strong brand power. JPMorgan also adjusted its price target upward to $18 while maintaining an Overweight rating, following discussions with Levi’s executive team about the company’s strategic initiatives and brand strength.
Additionally, Stifel lowered its price target for Levi Strauss from $25 to $20, maintaining a Buy rating despite concerns over potential tariff impacts. The company’s organic revenue growth accelerated to 8.6% year-over-year, surpassing expectations. Levi Strauss also announced an executive transition, with Lisa Stirling moving to a new role within the company, ensuring continuity in financial management. These developments reflect Levi Strauss’s strategic positioning and resilience in navigating economic challenges.
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