Thursday 25 April 2019

Wearing well: Levi Strauss shares surge 31pc on market return

Dressing down: Traders, many in jeans, work on the floor of the New York Stock Exchange on the day that Levi Strauss returned to the stock market. Photo: Getty
Dressing down: Traders, many in jeans, work on the floor of the New York Stock Exchange on the day that Levi Strauss returned to the stock market. Photo: Getty

Diptendu Lahiri and Aishwarya Venugopal

Shares in Levi Strauss & Co surged 31pc on their debut yesterday, giving the jeans-maker a market value of $8.7bn (€7.66bn) and suggesting strong investor appetite ahead of much-awaited listings from Lyft and Uber. The 165-year-old firm's return to the public market comes at a time when stocks are near all-time highs and the popularity of denim is surging, driven by the resurgence of 1990s styles.

The self-proclaimed inventor of the blue jeans, and the world's most recognised denim brand hopes to use a part of the proceeds to expand in emerging markets such as China and India.

"Denim continues to prove prevalent in streetwear and on the runway, so we're not expecting it to go anywhere any time soon," an analyst at retail analytics firm Edited said. Levi accounted for 5pc of the global jeans market in 2018, according to market research firm Euromonitor.

The market is expected to grow at a compound annual growth rate of 2pc until 2023.

Levi went public in 1971 but after 14 years was taken private by the Haas family, descendants of founder Levi Strauss. New York Stock Exchange traders swapped suits and ties for denim to mark the listing.

Reuters

Irish Independent

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