Many apparel companies recently revised their previous forecasts for 2021, signaling an encouraging outlook for what the rest of the year will hold. Levi Strauss & Co, for example, forecasted a strong full-year profit. The company has beaten quarterly earnings estimates this year, and it doesn’t appear as if earnings won’t continue to increase.
Since the beginning of this year, many Americans have become fully vaccinated. Per CDC, federal, and state-level guidelines, this has allowed many businesses to eliminate previous regulations that kept people from potentially spreading the virus. Now, many people can go out to eat, hang out with friends, and freely congregate whenever they want to throughout the nation.
Because of this reintroduction to society, people have been spending a lot of money on clothing and fashion items. For months now, the fashion industry has thrived. Going out for the first time in a year or more, people want new clothes in 2021. Many economists also point to the fact that the stimulus check received has allowed people to have more money in their pocket. Plus, many households saved for the past year, which may also allow them to spend more money now.
About 35% of consumers in the entire United States have changed waist sizes, per the Chief Executive Officer of Levi, Charles Bergh. As a result, people want new clothes that fit them accurately. This has culminated in an increase in sales for Levi Strauss and a change in the yearly forecast. Shares in Levi have now climbed by 3% in extended trading. It increased its third-quarter dividend by 33%, as well.
Levi Strauss & Co isn’t the only apparel company that has experienced a boost in sales. American Eagle and Abercrombie & Fitch have also experienced an increase in sales and feel very highly about their 2021 year. All apparel companies offer jeans and street clothes — clothing items that many people are looking for right now after not having any new items in their wardrobe throughout the COVID-19 pandemic.
While Levi Strauss & Co had a good quarter once regulations went away, the brand has also managed to gain success during the pandemic. Like many other clothing brands, last year they mainly pivoted to promoting their online store, where people could purchase items and have it delivered to them. This was a success for the company, as well as for all businesses who pivoted. Revenues through the internet or other online digital channels previously rose by about 75%.
Because of this major success, Levi Strauss & Co has already announced that it would continue promoting their online store. To do this, they are planning on investing in more distribution centers. They also plan to create a system where people can buy online, then go pick up their order in a store.
While many industries are still struggling to come out of the difficulties the COVID-19 pandemic put them in, apparel and fashion industries have done quite well since the beginning of the year. According to many of these businesses and their positive forecasts for 2021, it doesn’t appear that anyone thinks this surge in sales will slow down any time soon.
