Levi’s Goes Public, With Jeans on the Trading Floor


For in the future, the New York Stock Exchange was denim pleasant.

Levi Strauss & Company, the firm that traces its roots to the days of the California Gold Rush, began buying and selling publicly on Thursday for the second time in its 165-year historical past.

Traders in New York have been clad in denim pants and jean jackets, as the inventory alternate suspended its prohibition on sporting denims for the day. Levi’s additionally arrange a “tailor shop” outdoors of the alternate the place merchants might personalize their denim.

The firm’s shares, which have been priced at $17 every, rose 32 p.c of their first day of buying and selling, ending the day at $22.41 and pushing Levi’s valuation above $eight.5 billion.

“The floor looked awesome,” Charles V. Bergh, the firm’s chief government, mentioned in a telephone interview. “The irony is, there’s a sign when you walk onto the floor saying, ‘No jeans allowed.’”

Mr. Bergh said that Levi’s chose to return to public markets because of the renewed strength of the brand and its growth potential in categories like women’s apparel and international markets like China. Last year, tops accounted for 20 percent of the company’s sales while women’s apparel rose to 29 percent of revenue.

He also said that investors had responded positively to the company’s reputation as one that would take a stand on social issues, like its decision in the 1990s to pull financial support from the Boy Scouts of America after the organization refused to admit gay members and leaders. In recent years, Mr. Bergh has attracted attention, some of it critical, for speaking out about gun violence and advocating gun control legislation.

“There’s an acknowledgment that today consumers are buying brands that represent a good value, but they also buy into brands and companies that share their values,” he said.

Levi’s raised more than $100 million from the offering, which it plans to use for general corporate purposes and possibly for acquisitions, according to its regulatory filings. Much of the offering’s proceeds will go to the Haas family.

Members of the Haas family, known for their donations to the University of California, Berkeley, where the business school carries the family name, will hold about 80 percent of the voting shares after the offering.

Levi’s showing on Thursday makes it one of the better performing recent I.P.O.s. Since the start of last year, shares of companies listing on American exchanges rose, on average, 14 percent during their first day of trading.

The recent debuts of retailers have received a mixed reaction from investors. Shares of Farfetch, which went public last year, jumped 42 percent during their first day of trading. The stocks of Canada Goose and Duluth also performed well, rising 26 percent and 14 percent. Stitch Fix, though, finished essentially flat and J.Jill was down 3 percent.



Source link Nytimes.com

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