Levi’s Explores Home Goods and Sweats as Denim Sales Decline

Shoppers’ overall move from hard pants → soft pants sent Levi’s revenue down 12% in Q4, and sent the brand in pursuit of new categories. No, not like this.

First stop: Loose fits. Levi’s launched a unisex sweatpants line, Red Tab, last year; CEO Chip Bergh said the category, along with baggier denim styles, presents new opportunities as consumers shun inflexible fabrics.

Next stop: Zero fits. In February, Levi’s will expand its wholesale partnership with Target to include dinnerware, bedding, and pet accessories. The line’s intended to build hype around upcoming Levi’s shop-in-shop locations at Target, but it could also indicate whether Levi’s leans further into Canadian tuxedo interior design on its owned channels.

Final stop: Levi’s expects at least half its total revenue to come from everything but jeans over the next decade. The takeaway? Brands built on a core product that hasn’t resonated with Covid-era consumers have no choice but to expand.