Levi-Strauss returns to the stock market

gone are The days when everyone had to have a 501 from Levi's for a long time. At the latest since the turn of the century, the brand from San Francisco was considered to be dusty. But in the meantime, she has missed again a fresh coat of paint and is back now even to the stock market.

Lothar Gries, boerse.ARD.de

as Of today, of the nearly 37 million shares to be traded again on Wall Street. The issue price is 17 dollars above the originally targeted range of 14 to 16 dollars. This results in a estimated market valuation of approximately 6.6 billion dollars - a great success for a company that had a fight a few years ago, with declining sales and an outdated Image.

It is already the second attempt of Levi's to obtain with the aid of a flotation on the stock exchange of fresh money. Already in 1971, the company went on the stock market, however, it was the mid-1980s, again a retreat.

family say

replica the oldest ever found Jeans (1880), next to a picture of Levi Strauss in the Levi's Museum in Buttenheim,

Current owners are descendants of company founder Levi Strauss, who emigrated from Bavaria, first to New York, and in 1853, then - lured by the gold rush on the West coast - to California and moving on. There, he opened a textile business, specializing in rugged work clothes for gold miners. Together with his Partner Jacob Davis, Strauss is considered the inventor of Blue Jeans.

in accordance with the present IPO, the family retains an important say in the matter. According to the documents, issuing the company's new A shares to the value of 700 million euros. The family, however, should be, as the holder of B shares with a ten-fold voting rights.

Hip with Chip Bergh

in The IPO documents submitted, according to Levi earned in the last financial year (up to 25. November) the bottom line is that $ 285 million. The proceeds amounted to 5.6 billion dollars to 4.9 billion in the previous year, as much as it has been for years. At the peak of success, in the mid-90s, were the revenue to seven billion dollars. But then it went downhill. The brand was no longer fashionable. It lacked a clear strategy and good Marketing.

But how it has managed Levi's, the dusty Image of strip, and be hip again? After years of decline, in 2011 the company won the consumer goods specialists Charles (Chip) Bergh on Board. He had integrated the razor company Gillette, which was acquired by Procter & Gamble, successfully. When he got in 2010, the offer to Levi’s, he was 54 and said immediately.

"Make this company great again"

Levi's CEO Chip Bergh

in Doing so, he worked according to the Motto: "Make this company great again". Bergh emphasizes that he has invented the spell in front of Donald Trump. When he learned that 80 percent of Levi's customers are men, Mainly from five Western countries and their pants are concerned mainly in the elderly, buying homes, he lay where the weaknesses of the brand, but also what potential to your put.

On the commercial side, Bergh started the production in cheap wage countries to outsource in order to reduce the cost. He, too, set about the horrendous debt of two billion dollars to dismantle. He also modernized the production, the Jeans today, with a Laser instead of using chemicals, aging, and working with new stretch-performance materials.

More Yoga Pants than Jeans

Levis Jeans

The learning curve was steeper than I thought, so that the first successes of radical reconstruction, only four years after the arrival of the new chief showed. Until then, the sales have declined. However, for 2015, it goes uphill again. In the past three years alone the sales of women had increased to 200 million dollars, announced Bergh. Nevertheless, men still account for 70 percent of the customers. Also, the sales in China, India and Brazil is lagging behind the expectations.

Because the industry is facing major changes. The growth in the Premium market slows. Especially women to replace the pants of your Jeans, increasingly, Chino Pants, Yoga - or 7/8-in. Of manufacturers, such as Nike and Adidas, Jeans will benefit manufacturers have the Check.

Back to old size?

Nevertheless, a Premium could be Jeans to celebrate the forthcoming release of a Comeback, believe market researchers. This is also Levi's. works With the help of so-called "Influencer" in the social networks, the jeans supplier is trying to approach women, and to encourage you to buy a Levi's product.

The highest growth of Levi's rates achieved in the meantime with tops such as T-Shirts and Tops. According to the revenue increase 25 percent per year. The market share of Levi's in this Segment amounts to only one percent. Nevertheless, the head of the company hopes that Levi's will tear one day, the historical revenue high of seven billion dollars. "And my dream would be to crack the Ten-billion mark," says Chip Bergh.

source: boerse.ard.de

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