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Levi Strauss (LEVI, Financials) will divest its Dockers brand to Authentic Brands Group for $311 million as it pivots toward its flagship Levis line and Beyond Yoga activewear business.
Revenue contribution from Dockers has remained flat at 5% across fiscal 2022 to 2024, according to Levi Strauss filings.
Authentic Brands, which owns Reebok and Van Heusen, will acquire Dockers in a deal expected to close in the U.S. and Canada by July 2025, and globally by January 2026.
Levi Strauss plans to allocate $100 million of the proceeds for share repurchases.
CEO Michelle Gass said the deal supports a direct-to-consumer-first strategy and international expansion, with increased focus on womens apparel and denim lifestyle segments.
This move continues Levis portfolio reshaping to prioritize margin-rich core labels and streamline operations.
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This article first appeared on GuruFocus.