LEVI STRAUSS

Readies for Prime Time in

Public Markets Again

SOURCE- Economic Time Presented by : Sreha. Prasad

Sreerag. K
DATE- March. 22. 2019 Mohan. S
Nandeesh. B
Dhavankumar
Praveen. H
Nikhil. K

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MEETINGS & REHEARSALS

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 CONTENTS

 NEWS  IPO RESULTS

 COMPANY PROFILE (5,6)  EFFECTS-ON COMPETITORS (23,24)
 GRAPH  ADVANTAGES OF LEVI’S
 VIDEO  MARKETING MIX (26,27)
 HISTORY OF LEVI’S (9,10)  CONCLUSION
 FALL OF LEVI’S  BIBLIOGRAPHY
 RISE OF LEVI’S
 GRAPH
 PROCESS OF GOING PUBLIC
 VIDEO
 ANALYSIS (16 to 20)
 VIDEO
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 NEWS

 Levi’s is going public again

 Levi’s issuing IPO for 2nd time

 Levi’s expansion

 Most awaited listing this year

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 COMPANY PROFILE

 Founded on – May 1 1853

 Founded by – Jacob Davis & Levi Strauss

 H.Q – San Francisco, California (USA)

 Company Operated Stores – 2,800

 Owner – Haas Family

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C.E.O – Chip Bergh

Subsidiaries - Dockers, Denizen, Signature

Revenue – $ 5.575 b (2018)

Employees – 15,100 (2018)

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GRAPH

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VIDEO

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 HISTORY OF LEVI’S

1873 - First jeans

1912 - Denim playsuits

1935 - First blue jeans for women

1971 - Issued first IPO

1974 – Levi’s reaches $ 1b sales

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1985 - Going private again

1986 - Introduced Dockers

1990 - Increased competition

1996 - Buyback of remaining stakes

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 FALL OF LEVI’S
(1990 to 2002)

 Traditional style

 Competitors

 Fast changing trends

 Resistant to outsourcing

 Debt
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 RISE OF LEVI’S
2002

 Bringing back retro style

 Subsidiaries

 International presence

 Tie-ups

 Social responsibilities
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GRAPH

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 PROCESS OF GOING PUBLIC

STEP 1: Select an STEP 4: Stabilization

investment bank

STEP 5: Transition
STEP 2: Due diligence
and filings

STEP 3: Pricing

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VIDEO

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 WHY

 More than just jeans

 Overdependence on wholesale partners

 Implementing technology

 Expenditures
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 WHO

 Chip Bergh

 Goldman Sachs, JP Morgan, B of A

Merrill Lynch

 Mimi Haas

 Margaret Haas

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 WHAT

 36.67 m shares offered

 $14 to $16 per share

 9.47 m shares from existing shareholders

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 WHEN

 8 Feb 2019 – Filed for IPO

 11 Mar 2019 – Issued IPO

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 STRUCTURE OF SHARES

 Dual class share structure

 Class A shares – 1 vote per share

 Class B shares – 10 votes

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VIDEO

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 IPO RESULTS

 Opened at $ 22.22
 Levi’s valued at $ 6.5 b
 $ 623.3 m worth shares sold

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 EFFECTS ON COMPETITORS

 AEO – Dropped by 1.5%

 GAP – Dropped by 0.1%
 A&F – Dropped by 2.3%

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GRAPH

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 ADVANTAGES OF LEVI’S

 Brand image
 Customer loyalty
 Customization stores
 Competitive price
 Values

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 MARKETING MIX

 Product – Denim, Women’s apparel,

Purse, Belts

 Price – Region wise F.P

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 MARKETING MIX

 Promotion – Celebrities, Off-beat

commercials

Place – Africa, MEC, Brazil, India,

Japan

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 CONCLUSION

 Diversification
 More investment in R&D
 New manufacturing plants
 Creating new demand
 Ability to raise capital easily

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BIBLIOGRAPHY

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