We use first party and third-party Cookies to help us understand Website usage and to improve the content and offerings and to provide you advertising, analytics and other purposes related to your navigation habits. If you continue scrolling, we consider you accept the policy. You can read more about our cookie policy.


The global fashion business journal

Feb 19, 20206:07pm

Denim goes head to head with lycra: jeans giants grow despite the rise of athleisure

Levi’s, Guess or PVH group exhibit growth in their last fiscal years, predicting the return of the division ahead of sports pants.
Jan 30, 2020 — 8:56am
NEREA ZABALLA
Save

Denim stands in a lycra battle: the jeans giants grow despite the rise of the athleisure

 

 

Leggins don’t only live through women. Despite the rise of athleisure, denim giants stand. Following the period of 2015 and 2016, which were struggling years for the sector, the latest years show that the recovery of the leaders of the cowboy industry, such as Levi’s, Guess or the PVH group, is already a certainty.

 

The casualization of fashion, the same which appealed to the leggings, has also been the main revulsion for the comeback of jeans. Levi Strauss, the largest group in the sector, began its recovery back in 2016, with increases of 1.2% in 2016 and 7.8% in 2017. In 2018, the group’s revenue stood at 5.5 billion dollars, up 13.7% than the previous year, and made a profit of 285 million dollars, a 1.4% increase. The rush of denim also contributed to the company’s decision to return to the stock market in March 2019.

 

Guess began its recovery in 2017 with 2.1 million dollars in revenue. In 2018, the company grew 7.9% and in 2019, it saw another increase of 10.4%. In addition, the group’s losses disappeared in 2019 with profits of 14.1 million dollars.

 

 

 

 

The PVH group, which controls Calvin Klein and Tommy Hilfiger, also ended its last fiscal years on good notes, though at the cost of its profitability. This last pointer began to recover in 2018, which saw an increase of 38.7%.

 

The growth in the division also motivated the VF group to split its denim brands to a new company, Kontoor Brands, in 2018, which still does not consolidated data.

 

The development of the sector is also transported to large distributions, although the concerned groups do not detail the evolution of their revenues per category. Weekday, H&M’s specialized denim chain, is the third-largest in the group by revenue. In the case of Gap, Old Navy is the label that has best evolved of the group, which even led it to consider a spin-off that finally failed to occur.

 

And jean doesn’t only survive because of denim: according to an Edited study, outerwear denim sales doubled between 2016 and 2018. In the case of pants, the growth of its popularity also led to a greater diversity of models, although mom jeans and nineties style have a better positioning for the upcoming years.


Advertising
Comment
Participation rules

info@themds.com

 

Validation policy for comments: 

 
MDS does not perform prior verification for the publication of comments. However, to prevent anonymous comments from affecting the rights of third parties without the ability to reply, all comments require a valid email address, which won’t be visible or shared.
 
Enter your name and email address to be able to comment on this news: once you click on the link you will find within your verification email, your comment will be published.

0 comments — Be the first to comment
...