Levi’s is seeing a surge in momentum, driven largely by strong demand for its baggy jeans and growing interest from younger shoppers. The denim maker recently posted its fastest quarterly revenue growth in nearly four years, with investors responding positively.

The company’s performance is being fuelled in part by increased sales through digital channels, where Gen Z consumers are discovering and buying its looser-fit styles. This demand has allowed Levi’s to rely more on full-price sales and scale back on discounts, even as it absorbs import tariffs of about 10% introduced in the United States (US) in 2025.

“Demand hasn’t been affected by higher pricing, and we see benefits becoming more fully realised,” said Rick Patel, analyst at Raymond James, pointing to the brand’s pricing power despite a challenging global environment.

Retail analysts note that wealthier Gen Z and Millennial shoppers in the US continue to spend on discretionary items such as clothing, accessories and beauty products, even as lower-income households cut back. This uneven spending pattern has helped support brands like Levi’s that are positioned in the mid-to-premium range.

At the same time, the company is preparing for a leadership transition, with long-serving Finance Chief Harmit Singh set to retire after more than a decade. “We believe investors will be pleased that he will remain in his role through the transition period,” said Telsey Advisory Group analyst Dana Telsey.

While Levi’s has raised its outlook, analysts say its projections for US growth remain cautious, suggesting demand could soften in the months ahead. For now, however, the brand’s focus on relaxed denim and direct engagement with younger consumers continues to support its strong run.

–Reuters/ChannelAfrica–