(Reuters) – Levi Strauss & Co. said on Thursday it would buy apparel maker Beyond Yoga for an undisclosed amount, as it looks to expand its presence in the lucrative leggings category that boomed during the COVID-19 pandemic.
Apparel retailers, including American Eagle Outfitters Inc and Abercrombie & Fitch Co, have been ramping up their exposure to the kind of apparel that can be worn at home such as shorts and tanks, as demand for the items surged during pandemic-led lockdowns that kept people indoors.
Levi Strauss said Beyond Yoga, which focuses on body positive apparel, would operate as a standalone division, and potentially contribute over $100 million to the company’s net revenue in fiscal 2022.
Last month, Levi’s shares climbed after the company forecast a strong full-year profit fueled by a quicker-than-expected rebound in demand for its denims, tops and jackets.
(Reporting by Aditi Sebastian; Editing by Shinjini Ganguli)