Levi Strauss, the renowned American denim brand famous for its 501 jeans and Trucker jacket, has taken a surprising step into the booming athleisure market through its acquisition of Beyond Yoga. The parent company, which also owns Dockers, invested a substantial $400 million to secure the athleisure brand. This strategic move will assist Levi Strauss in expanding its product range and diversifying its offerings.

CEO Chip Bergh emphasized the significance of venturing into the performance athletic category in a statement regarding the acquisition. With the US athleisure market valued at $50 billion, five times larger than the jeans market, Levi Strauss sees immense growth potential. Beyond Yoga, despite being a relatively small brand currently, has the potential to contribute to Levi Strauss’s long-term profitability and help the company achieve its goal of making its women’s business account for 50% of its overall business.

Bergh also highlighted the value of acquiring Beyond Yoga’s expertise in fabric and manufacturing for performance-oriented clothing. Beyond Yoga’s commitment to inclusivity and its strong presence on social media align with Levi Strauss’s objective to foster a diverse and inclusive brand portfolio. The brand is projected to generate $100 million in sales next year while maintaining a profitable operating margin of over 12%.

Levi Strauss’s management is confident that the integration of Beyond Yoga will enhance the growth prospects of the brand. The company brings its profound experience in brand-building, understanding of menswear, and retail expertise to the table. Levi Strauss also envisions international expansion opportunities for Beyond Yoga, as the brand currently operates primarily in the US and online.

The process of integrating Beyond Yoga into Levi Strauss is already in progress. This move follows the strategies of other industry giants and leading athleisure brands such as Lululemon and Sweaty Betty, which have been acquired by larger companies due to their potential for growth. Under Bergh’s leadership, Levi Strauss has witnessed improvements in revenue and operating results, and the acquisition of Beyond Yoga is expected to contribute further to the company’s success.

In conclusion, Levi Strauss’s entrance into the athleisure market through the acquisition of Beyond Yoga is a strategic decision aimed at diversifying product offerings and capitalizing on the growing performance athletic segment. With the potential for substantial growth, increased profitability, and enhanced brand capabilities, Levi Strauss is well-positioned to compete alongside established players in the athleisure market.

Useful links:
1. Beyond Yoga Official Website
2. Levi Strauss Official Website