Dive Brief:
- Levi Strauss & Co. announced that the company will sell Dockers to Authentic Brands Group, according to a Tuesday press release.
- The initial sale is for $311 million but has the potential to reach up to $391 million based on the performance of the Dockers brand under Authentic’s ownership. The deal is subject to customary closing conditions and is expected to close over two different dates in the next year.
- In a separate announcement, Authentic said the company has signed a licensing agreement with Centric Brands, which will act as Dockers’ operating partner for specific categories in the U.S. and Canada.
Dive Insight:
Levi’s is offloading Dockers in order to focus on its core brands.
The jeans company announced last fall that it was seeking strategic alternatives for Dockers and was considering a sale, with CEO Michelle Gass stating that the brand had “underperformed for some time.” Last quarter the company reclassified Dockers as discontinued operations.
“The Dockers transaction further aligns our portfolio with our strategic priorities, focusing on our direct-to-consumer (DTC) first approach, growing our international presence and investing in opportunities across women’s and denim lifestyle,” Gass said in a statement. “After a robust process, we are confident that we maximized the value of the business and that Authentic is the right organization to usher in the next chapter of growth for the Dockers brand.”
As Levi Strauss zeros in on its DTC strategy, it also wants to scale Beyond Yoga, a brand it acquired in 2021.
Dockers, which has been around since 1986, is best known for khakis and chinos and for many years became synonymous with casual office style. The casualization of workwear and an increase in remote employees negatively impacted sales.
Meanwhile, global brand development and licensing company Authentic has tapped longtime partner Centric Brands to lead operations for the newly acquired business. Centric will take on the sportswear, activewear, children’s apparel, dress shirts, workwear and performance golf categories.
Authentic is looking internationally to scale the brand.
“Few brands own a category the way Dockers does, yet still have so much room to grow,” Matt Maddox, president of Authentic, said in a statement. “Its legacy in casualwear gives it a strong foundation, but the real opportunity lies in reimagining the brand for a new generation. Through our global platform and deep licensing network, we’re committed to stewarding the brand into its next era of growth and relevance.”
Levi Strauss said it will return around $100 million of the net cash proceeds from the sale to shareholders through share repurchases.
The deal is expected to conclude on or around July 31 for Dockers’ intellectual property and operations in the U.S. and Canada. The sale of the remaining operations is expected to close on Jan. 31, 2026.