SAN FRANCISCO – (BUSINESS WIRE) – Levi Strauss & Co. (NYSE: LEVI) and Beyond Yoga, a fast-growing premium sport and lifestyle apparel brand based in the United States, announced today that they have entered into a purchase agreement to sell Beyond Yoga to LS & Co have signed. The transaction is cash-funded and is expected to close in the fourth quarter of 2021, subject to customary closing conditions. Further financial and operational details will be announced upon completion of the transaction.
This acquisition will bring the Beyond Yoga brand to more consumers through direct-to-consumer expansion, including brick and mortar retail, gender and category growth, and further developing its wholesale presence with premium partners. With this transaction, LS & Co. enters the activewear category, complements the growing women’s shop of LS & Co. and enables LS & Co. to provide its global resources and infrastructure to significantly expand Beyond Yoga and to build on its largely digital ecosystem. The successful branding functions of LS & Co. Beyond Yoga will help grow globally as it benefits from continued consumer acceptance of premiumization, casualization and wellness trends.
“This acquisition consolidates the presence of LS & Co. in the fast growing activewear segment with a brand with enormous growth potential, ”said Chip Bergh, President and Chief Executive Officer of LS & Co. “The foundation that the Beyond Yoga team built, combined with the resources, global reach and size of LS & Co. make me confident that Beyond Yoga will become a strong growth engine for LS & Co. and help advance our strategic priorities. In addition, Yoga’s value-oriented business approach, which is geared towards inclusiveness and authenticity, is a natural addition to our corporate portfolio. We look forward to welcoming the Beyond Yoga team to LS & Co. ”
“Beyond Yoga is an excellent addition to our brand portfolio and will accelerate our long-term growth algorithm,” said Harmit Singh, Chief Financial Officer of LS & Co. “In the last three years, the brand has more than doubled its sales and increased profitability in a disciplined manner. This acquisition strengthens the sales development of LS & Co., Improves our gross and EBIT margins and contributes immediately to our earnings. Given our strong liquidity position, this transaction, which is in line with our capital allocation strategy, enables us to profitably scale a high-yield, digital business. ”
After completion of the transaction, Beyond Yoga will become an independent division within LS & Co. Co-founder Michelle Wahler will continue to serve as Chief Executive Officer of Beyond Yoga reporting to Chip Bergh.
“We feel honored and are happy to be part of LS & Co. Family, ”said Michelle Wahler. “Joining their portfolio will allow us to accelerate our growth by leveraging the experience and resources of their team and their global infrastructure. We are very pleased that LS & Co. help us bring our brand to a wider audience as we continue to promote our mission of inclusivity and acceptance for all. ”
“I’ve always had one goal: to make women feel good about their bodies. Beyond Yoga was developed with that mission in mind and served as a touchstone for the company, ”said Jodi Guber Brufsky, founder and chief creative officer of Beyond Yoga. “It was important to me that when the time came, the company was passed into the hands of someone whose values match ours. We are very happy about this partnership and look forward to a successful future. ”
Beyond yoga
Headquartered in Los Angeles, California, Beyond Yoga is a body-hugging premium athleisure apparel brand focused on quality, fit, and comfort for all shapes and sizes. The company was founded in 2005 to promote body positivity and to honor and celebrate every XXS-4X body. The brand produces clothing that promotes wellbeing made from luxuriously soft, easy-care fabrics, for styles that can keep up with the toughest workouts and beyond. Beyond Yoga is more than just comfort and performance; The brand has created an inclusive community focused on body positivity, celebrating diversity and giving back the things they believe in. The company is founded by women, run by women and over 85% run by women.
About Levi Strauss & Co.
Levi Strauss & Co. is one of the world’s largest branded clothing companies and a leading global supplier of jeanswear. The company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi’s®, Dockers®, Signature by Levi Strauss & Co. ™ and Denizen® brands. Its products are sold in more than 110 countries worldwide through a combination of retail chains, department stores, online sites, and a global presence of approximately 3,000 retail stores and shop-in-shops. Reported net sales of Levi Strauss & Co. for 2020 were $ 4.5 billion. Further information is available at http://levistrauss.com and company news and announcements at http://investors.levistrauss.com.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements, including statements regarding the company’s prospects for financial performance and growth, including net sales, EPS, gross margin and EBIT margin, future financial results, and factors contributing to such future financial results and future channel, geographic, gender and category expansion. The company has based these forward-looking statements on its current assumptions, expectations and projections of future events. Words such as, but not limited to, “believe,” “will,” “so we can,” “when,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “confident,” and the like Expressions are used to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates that reflect the best judgment of management and involve a number of risks and uncertainties that could cause actual results to differ materially from those proposed in the forward-looking statements. Investors should consider the information contained in the company’s filings with the SEC, including its Annual Report on Form 10-K for fiscal year 2020 and its Quarterly Report on Form 10-Q for the quarter ended May 30 . 2021, in particular in the sections “Discussion and analysis of the financial and earnings position by management” and “Risk factors”. Other unknown or unforeseeable factors could also have a material adverse effect on future results, performance, or performance. In addition to the risk factors previously disclosed in the SEC filings and the risk factors identified elsewhere in this press release, factors such as the following could cause actual results to differ materially from those anticipated in the forward-looking statements or historical performance: ability to obtain regulatory approvals and Fulfillment of other closing conditions for the acquisition; the occurrence of an event, change or other circumstance that could give rise to the right of one or both parties to terminate the purchase agreement; Difficulties and delays in integrating Beyond Yoga’s business or fully realizing cost savings and other benefits; Business interruption after takeover; Inventory changes; the inability to sustain sales and earnings growth; the inability to retain existing Beyond Yoga employees or clients; Changes in interest rates and capital markets; Inflation;; Economic situation; the impact of potential virus variants and the resurgence of COVID-19 on the business and results of operations of the combined company; the ability to complete the proposed acquisition; and / or any of the other risks listed above. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated or, if a date is not stated, the date of this press release and the associated conference call. The company undertakes no obligation and does not intend to update or revise any forward-looking statements contained in this press release and the related conference call to reflect circumstances after the date of this press release and related conference call or the occurrence of future events themselves if these circumstances or future events make it clear that the expected results expressed or implied in these forward-looking statements will not be realized.
