Levi’s Chief Financial and Growth Officer Harmit Singh announced that the company will expand its new $300 jeans collection to more stores next year. This move aims to leverage the strong demand for high-end denim in the market to drive overall growth.
Levi’s Blue Tab collection features higher quality denim pants and shirts, which were introduced in Asia earlier this year and have entered over twenty stores in Europe and America since September. This is part of Levi’s ongoing efforts to expand its brand influence and attract more female customers.
Singh told Reuters, “We will come back in 2026 at a larger scale because the performance of the Blue Tab series has been really good.”
The pricing of the Blue Tab series is significantly higher than their classic product line:
– Blue Tab Jeans: Priced around 250 to 350 euros (approximately 290 to 410 USD).
– Red Tab Jeans: Priced between 70 to 130 euros.
– Blue Tab Jacket: Priced at around 700 euros.
Levi’s currently offers a wide range of products, from the mid-range market-targeted Red Tab to products for outlet stores and the mass market like Walmart. Therefore, the brand faces a delicate challenge in balancing catering to budget-conscious consumers and high-end product customers.
Singh emphasized that the key to the higher prices lies in product quality. The Blue Tab series is inspired by thicker, stiffer Japanese selvedge denim fabric produced on traditional narrow looms with a higher density and a special selvedge edge.
Data shows that while high-end denim products only account for about 10% of the global denim market of approximately $100 billion, their growth rate is much faster than the regular denim category.
The manufacturer of the iconic 501 jeans reported sales of $6.4 billion last year and had set a goal to achieve $10 billion in revenue and a 15% operating profit margin by 2027, but canceled this timeline during the pandemic period of slowed growth due to high inflation.
Singh stated that Levi’s expects a strong holiday shopping season and that the company has sold more full-priced products this year compared to a year ago. He said, “Consumers have largely maintained resilience. We have not seen any demand contraction.” He added that Levi’s will limit discounts as much as possible.
In the future, the company will continue to drive full-price sales through expanding non-denim fabric product lines and collaborations with brands like Barbour and Nike. Singh also confirmed that Levi’s has opened the doors for acquiring a third brand after Beyond Yoga to accelerate the growth of their topwear business.