VFC - Could Levi's Become the Next VF Corp?
2023-11-02 09:53:00 ET
Levi Strauss (NYSE: LEVI) is an iconic fashion name, but not because of its high style. The company sells what is perhaps one of the most basic of basics: jeans. But management is pinning its future growth on what it calls the "denim apparel lifestyle business." That's a major shift in approach that should have investors concerned, particularly if you compare Levi Strauss to VF Corp (NYSE: VFC) and its own experiences.
At one point, VF Corp was one of Levi's biggest competitors, given that it owned jeans brands like Wrangler. However, the company made the decision to jettison its basics, including jeans, by spinning off Kontoor Brands (NYSE: KTB) . It was a massive shift in direction for VF Corp, which was left with a collection of fashion brands, including Vans, The North Face, and Timberland, among others.
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Could Levi's Become the Next VF Corp?