Search Here

Levi Strauss & Co. announced on Tuesday that it has reached a deal to sell its Dockers brand to Authentic Brands Group for $311 million.

The deal marks a major shift in Levi's strategy as it focuses on expanding its global reach and strengthening its core denim and athleisure offerings.

Authentic, known for managing brands like Reebok and Nautica, will own the Dockers name and intellectual property.

Centric Brands will take over daily operations for Dockers, including manufacturing and distribution.

While the sale price is $311 million, Levi's could earn up to $391 million total, depending on Dockers' future performance under its new ownership, CNBC said.

"This sale helps us focus on our biggest priorities," said Levi's CEO Michelle Gass. "We're moving forward with a direct-to-consumer approach, growing our international business, and investing more in women's and denim lifestyle products."

Levi's introduced Dockers in 1986 as a khaki option to complement denim. The brand gained major popularity in the 1990s, especially with the rise of "Casual Fridays" in the workplace.

However, demand for khakis in the US has dropped in recent years, especially as remote work and casualwear have taken over since the COVID-19 pandemic.

Levi's Exits Dockers to Refocus on Core Denim and Athleisure Brands

Levi's started looking at options for Dockers in late 2023 due to the brand's underperformance and overlap with the company's main product lines.

In the most recent quarter, Dockers brought in $67 million in revenue, a number that Levi's only recently began reporting separately.

While US interest in khakis has declined, Dockers still has strong appeal overseas. That international potential is what made the brand attractive to Authentic.

Matt Maddox, president of Authentic, emphasized Dockers' strong position in its category. He noted that the brand's real growth opportunity lies in expanding into new markets and reaching a younger generation.

Authentic aims to grow the Dockers brand internationally by leveraging its extensive network of 1,700 licensing partners. Talks are already underway with partners in Europe, Latin America, Asia, and the Middle East.

The deal is set to close by July 31 for operations in the US and Canada, with the rest of the markets expected to follow in January 2026, AP News said.

Levi's will continue focusing on its Levi's label and Beyond Yoga, which it acquired in 2021, as consumers increasingly choose more flexible and comfortable clothing.