Clothing retailer Levi’s is approaching 500 locations with the opening of more Beyond Yoga storefronts, and it plans to stretch its footprint even further across the U.S.
The company’s CEO is eyeing more brick-and-mortar growth, floating the possibility of doubling its store count in the coming years.
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Levi Strauss & Co. sees a runway for growth after net sales rose 7% year-over-year in the third quarter to $1.5B, Retail Dive reported. Levi’s has 458 stores in the Americas, and another four Beyond Yoga stores opening will bring that brand's store count to 14.
Direct-to-consumer revenues were up 11% globally and up 7% in the U.S. in the third quarter compared to the same period last year. Customers turn to established, trusted brands like Levi's in times of uncertainty, CEO and President Michelle Gass said during a Thursday earnings call.
“So as I think about the DTC business here in the U.S., we have the potential to even double our store count and further accelerate e-commerce on the back of the momentum we have,” Gass said.
But Levi’s retail execution needs attention, Third Bridge analyst Natasha Nair told Retail Dive. Levi’s products are sold in about 50,000 retail locations worldwide, with 3,400 brand-dedicated stores and shops-in-shops.
“Our experts describe the company as a wholesaler doing retail, with store experiences that lack the dynamism seen in rivals such as American Eagle or Zara, who refresh assortments weekly,” Nair said.
Levi’s has focused on improving consumer experiences with its store optimization initiatives, Gass said.
“We've enhanced our in-store lifestyle merchandising to make the store environment more inspiring and shoppable, highlighting our broader assortment of head-to-toe look,” she said. “We've also been focused on improving our assortment planning and life cycle management, resulting in lower promotions and higher full-price selling.”
Levi’s opened 157 company-operated stores and closed 53 stores in 2024. This quarter, it plans to open Beyond Yoga stores in Boston and Houston and two in Northern California.
Levi Strauss acquired the athleisure brand in a $400M deal in 2021. Nancy Green, the former CEO of Athleta, took over Beyond Yoga last year with plans to grow the brand, which also has wholesale partnerships with fitness studios and resorts like the Four Seasons.
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