Aug. 30, 2021, 8:36 a.m. EDT

Loose-fit jeans are a plus for Levi Strauss

Levi Strauss & Co. (NYS:LEVI) , and the rest of the denim category, are benefiting from a loose-fit jeans tailwind, according to Wells Fargo, which initiated the denim icon at overweight with a $31 price target. Levi Strauss holds the top global position in the category, and the trend is in "early innings," according to analysts. "Furthermore, prior trends such as color or distressed are 'finish' trends, and these come and go on shorter time frames, while silhouette or 'fit' trends tend to last longer (the low-rise boot cycle prior to the skinny jean lasted five-to-eight years)." Wells Fargo also highlights the company's recent acquisition of Beyond Yoga, which gives Levi Strauss a foothold in the booming athleisure business. And Levi Strauss' moves away from wholesale into higher-margin direct-to-consumer are a plus. Levi Strauss shares have run up 33.8% for the year to date while the S&P 500 index (S&P:SPX) is up 20% for the period.

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