What's driving Levi's 11% quarterly sales increase?

The U.S. jeans category has been declining for years as consumers are increasingly opting for yoga pants over denim.  Sales in 2017 were $16.2 billion, down from $18.8 billion in 2013.  And VF Corp., owner of Lee and Wrangler jeans is eyeing a sale or spin-off.  But there was one notable exception to the trend - Levi's - who saw an 8% revenue increase in its most recent fiscal year. (Mattioli & Kapner, 2018)

This week Levi's released their third quarter results and they were eye popping.  An 11% jump in sales, marking the fourth quarter in a row that the company has achieved double-digit revenue gains;  and net income soared 45% to $130 million.   (Mahoney, 2018)

So the obvious question is why?

One possibility is their  limited-edition customization studio in Los Angeles.  And then there's the Made & Crafted collection with Lily Aldridge and the Levi's X Air Jordan collaboration - both sold out within minutes.

But Levi's is crediting their activism.  Last month they made a commitment to ending gun violence with a $1 million Safer Tomorrow Fund which will provide support to a variety of nonprofits and youth activists.

The company has also joined forces with Rock the Vote for the "Voting Looks Good On Everyone" campaign.  You can look at the video here...

https://www.youtube.com/watch?v=UwbeVwZjjjE

And this week Levi's Australian division is kicking off a partnership with Support Act publicizing a 24-hour mental-health helpline for artists and music workers.  You can check out a wellness tips video here...

 

https://www.youtube.com/watch?v=xMaITVCG8iQ

Lots of good stuff.  No wonder the results have been impressive. 

So, which persuasion techniques are they making use of with each of these tactics?  Do you think different generations are responding to different ones?  Which appeals most to each?  Why?  Levi's sales appear to have been up even before these efforts began.  Any thoughts about why that might be?

Mattioli, D. & Kapner, S. (2018, August 10)  Wrangler Owner Looks to Exit Jeans Business.  wsj.com.  Retrieved October 10, 2018, from

https://www.wsj.com/articles/wrangler-owner-looks-to-exit-jeans-business-1533928407

Mahoney, S. (2018, October 10)  Levi's Credits Activism With Surging Sales.  mediapost.com.  Retrieved October 17, 2018, from

https://www.mediapost.com/publications/article/326343/levis-credits-activism-with-surging-sales.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=111326&hashid=ybq2buULrntyGS6NfbELk0afrrI