After months of signaling its intent to divest the California-born chino brand, the American denim giant, Levi Strauss & Co has inked a deal to sell Dockers to Authentic Brands Group (ABG) for $311 million.
The agreement may also include performance-based bonuses that could earn Levi Strauss up to an additional $80 million in the coming years.
Having recently launched its updated brand message ‘Always a fit,’ Levi Strauss & Co registered a 4 per cent decline in revenue to over $323 million in 2024. The brand made up about 5 per cent of Levi Strauss & Co's total revenue, which totaled $6.4 billion last year.
This sale allows the company to further align its portfolio with its strategic priorities - focusing on its direct-to-consumer strategy, expanding its international footprint, and investing more deeply in its women’s and denim businesses, says Michelle Gass, President and CEO, Levi Strauss & Co.
The sale is a part of the company’s broader Project Fuel transformation plan, which has already included several major shifts including shutting down its Denizen brand, closing its Plock manufacturing facility in Poland, exiting the footwear business, reducing its workforce, doubling down on the Levi’s label and its growing athleisure brand, Beyond Yoga
Known for operating through licensing partnerships, the Authentic Brands Group will fold Dockers into its vast portfolio, which includes Ted Baker, Van Heusen, Arrow, Izod, Nautica, and Eddie Bauer, among others.
Jamie Salter, Founder, Chairman, and CEO, ABG, says, Dockers is a brand with strong consumer recognition, deep heritage, and a well-established licensing foundation. The brand helped define the casual workplace aesthetic and offers tremendous opportunity to expand in that legacy across various categories.”
The deal is expected to close around July 31, 2025, for Dockers’ intellectual property and operations in the US and Canada. It’s European and Asian operations - including stores and retail partnerships - are expected to transition to ABG by January 31, 2026.
Until then, Dockers will continue to operate under Levi Strauss & Co.’s infrastructure during the transition.
