Levi Strauss, With A Fast-Growing Women’s Business, Makes A Triumphant Comeback As A Public Company

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'The vast majority of the Haas family voted for the IPO. They did want a dual class share structure because they're institutional investors and they want to be around for a long time,' said Harmit Singh, CFO at Levi Strauss

Levi's shares soared more than 30% today, giving the company a market capitalization of more than $8 billion.Levi Strauss, one of America’s oldest companies and the inventor of the blue jean, began its second stint as a public company on Thursday. Shares climbed off the bat, soaring more than 30% in the first few hours of trading.

Levi’s relaunched its women’s line in 2015 with a number of new styles and a four-way stretch fabric designed for comfort. Customers took notice, and sales from its women’s business have now risen for the last 14 consecutive quarters. In 2016, Kylie Jenner posed on Instagram wearing a pair of Levi’s Wedgie Fit jeans. In 2017, Beyoncé wore a pair of its cutoff jean shorts during a performance at Coachella.

In 2018, the company recorded net income of $283 million. Revenue rose 14% to $5.6 billion. That is up from net income of $135 million on revenue of $4.8 billion in 2011. The company has also paid down some $1 billion in debt since 2011. “The vast majority of the Haas family voted for the IPO. They did want a dual class share structure because they’re institutional investors and they want to be around for a long time,” said Singh. “But the governance of the company is in the hands of a very competent management team.”

 

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