Sweet jeans! CNBC reports that Levi Strauss is preparing an IPO that could raise between $600m and $800m at a valuation of around $5B.
Founded in 1853, the iconic blue jean maker actually went public once before in 1971, completing one of the largest-ever IPOs of its time ($50m).
But profits steadily declined. By 1984, descendants of Levi Strauss took the company private in a $1.7B leveraged buyout, and then did another buyout in 1996 to acquire stock from employees and outside investors.
In doing so, Levi’s took on billions in additional debt right as a little thing called the internet was taking off, keeping Levi’s from making an early dent in the budding e-commerce industry.
As profit declines lingered, the company’s CEO Chip Bergh devised a strategy to focus on the company’s “profitable core” in order to free up extra cash and lean into its e-commerce biz.
Now, it’s finally starting to see its top and bottom lines rise again. Last year, Bergh led the company to almost $5B in sales (up from $4.4B when he started in 2011), and reported revenue of $1.4B for the quarter ending in August this year, representing a 45% jump YoY.
As far as debt goes, the pant store has cut its massive tab in half over the last 2 years.