A reopening society is music to your ears, especially if you're in the business of selling jeans.
We're watching major consumer tailwinds unfold for companies in the apparel sector.
Levi Strauss and American Eagle have gained serious traction with consumers over the last year as fashion preferences shift from skinny fits to loose-fitting boyfriend jeans, bootcut, and flared variations.
Shopping for New Clothes Mentions: +10% YoY
Back-to-School Shopping Mentions: +56% QoQ
You can see these tailwinds bolstering LEVI demand in the current quarter:
Levi has also done a tremendous job of shifting to digital sales. These mentions are currently +81% higher vs. 2019. Digital demand was +17% higher YoY in the quarter being reported (May 31 date of reference).
But since the end of the quarter, overall LEVI demand has slipped. You can see that in the near-term demand trajectory, where LEVI is trailing peer AEO.
Demand has dropped -5% QoQ, while American Eagle is carrying momentum in the other direction +5% QoQ.
Last quarter, LEVI beat expectations, raised its outlook, and shares rose +6% after hours. LikeFolio data suggests Levi will post great numbers, but guidance is uncertain.