Levi Strauss (LEVI) is hoping Beyoncé’s marketing campaign can boost the brand’s growth.
Just before releasing its third-quarter results, the denim maker announced a partnership with the music megastar whose latest album, “Cowboy Carter,” includes a song called “Levi’s Jeans.”
“We are honored to partner with a global icon like Beyoncé… who supports women’s empowerment and aligns with our values,” said Harmit Singh, Chief Financial Officer of Levi Strauss & Co. he told Yahoo Finance on Thursday. “So our view is…this is a win-win situation for Beyoncé and for us.”
Levi Strauss stock rose 8% the week the company teased a brand partnership with the all-time Grammy winner on Sept. 23. However, Levi Strauss’ stock price fell 7.6% during trading hours after the company announced its third-quarter results, due to the company’s weak performance. Investors said they were forecasting fourth-quarter sales and were considering exiting the struggling Dockers pants business.
Partnership with Beyoncé strengthens focus on women’s apparel
Levi’s management hopes Beyoncé’s new commercial will boost consumer appeal, especially for its women’s business, which grew 11% in the third quarter and now accounts for a third of Levi’s current business. It occupies the top 1 spot.
“Our view is that this partnership will strengthen our focus on women (in business),” Singh said. “Our women’s business is having another strong year, and we think this (partnership) will continue to accelerate that momentum.”
As part of the campaign, Beyoncé posted a series of photos and videos on Instagram showing the artist and cultural icon wearing jeans and a denim 10-gallon hat at a laundromat. The accompanying captions read: “I give you these blues. They’re in my genes,” and “I give you high fashion in a simple white t-shirt.”
The company also said it wants to expand from a primarily denim bottoms brand into a “head-to-toe denim lifestyle brand,” as CEO Michelle Gass said during the third-quarter earnings call.
Levi’s is accelerating efforts on its denim, yoga and tops product pipeline.
“We want to take this (top) business even higher,” Singh said. “I think we’re selling right now from three lows to three highs.”
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