Levi Strauss has agreed to sell its Dockers brand to Authentic Brands Group for $311 million, marking a significant strategic shift for the iconic American apparel company. Under the terms of the deal, Authentic Brands Group will acquire Dockers’ intellectual property, while Centric Brands will assume responsibility for the brand’s operations, including manufacturing, sourcing, and distribution. Levi Strauss stands to gain up to $391 million in future earnings, depending on Dockers’ performance under Authentic’s management. Authentic Brands Group already oversees notable brands such as Forever 21, Reebok, and Nautica, positioning it as a strong steward for Dockers’ next phase.
Levi Strauss CEO Michelle Gass highlighted that the sale aligns with the company’s strategic priorities, focusing on a direct-to-consumer model, expanding international reach, and investing in women’s and denim lifestyle segments. She expressed confidence that the transaction maximizes Dockers’ value and places the brand in the hands of an organization well-equipped to grow it globally.
Levi’s had been contemplating selling Dockers since October as part of a broader effort to sharpen focus on its flagship Levi’s line and athleisure brand Beyond Yoga. Originally launched in 1986 as an alternative to denim, Dockers became synonymous with khakis and was hugely popular in the 1990s and 2000s. However, khakis have declined in popularity in the U.S. in recent years amid a denim resurgence, making Dockers less relevant in the domestic market.
Levi’s efforts to revitalize Dockers by expanding its range of tops and bottoms created significant overlap with its namesake brand, causing performance issues. Dockers’ sales were weighing down Levi’s overall results, prompting Gass, who took over as CEO just over a year ago, to streamline the company’s portfolio by cutting underperforming segments and prioritizing direct sales channels.
In the quarter ending March 2, Dockers generated $67 million in revenue, though Levi’s only recently began reporting brand-specific financials, making year-over-year comparisons unavailable. Despite Dockers’ diminished appeal in the U.S., the brand remains popular in international markets, making it a fitting candidate for a brand management company specializing in global licensing and expansion.
Authentic Brands Group plans to leverage its extensive global network of 1,700 licensing partners to unlock new opportunities for Dockers. The company is already engaged in discussions with regional operators across Latin America, Europe, the Middle East, and Asia to grow Dockers’ presence and business internationally.
Matt Maddox, president of Authentic Brands Group, emphasized Dockers’ strong category ownership and legacy in casualwear, stating that the brand still holds substantial growth potential. He expressed excitement about reimagining Dockers for a new generation of consumers and committed to guiding the brand into a new era of relevance and expansion using Authentic’s global platform and licensing expertise.
This deal signals a new chapter for Dockers, as it transitions from being a Levi Strauss asset weighed down by changing domestic fashion trends to becoming a globally managed brand with fresh growth prospects. Meanwhile, Levi Strauss continues to concentrate on strengthening its core offerings and direct-to-consumer approach, positioning itself for future success in a competitive apparel landscape.
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