Market Hot Spot: Levi'S, The Originator Of Jeans, Returns To The New York Stock Exchange To Expand Its Influence.

On Wednesday, LevisStrauss, the parent company of Levi's Levis, submitted a IPO application to the US Securities and Exchange Commission (SEC). It plans to return to the New York Stock Exchange on 2019, trading code "LEVI".

Affected by the news of Levis, other clothing brands on Wednesday were on the low side.

As of 2 p.m. Eastern time, GAP shares fell 1.35%, American EagleOutfitters fell 2.97%, Urban Outfitters fell 2.10%, Abercrombie & Fitch fell 3.32%, and EagleOutfitters shares fell 3.32%.

SEC's documents show that LevisStrauss plans to raise $100 million through IPO, but this amount may only be calculated for the cost of the application and may change later.

According to the US media CNBC, the goal of Levis is to raise 600 million to 800 million dollars.

Levis indicates that the planned proceeds will be used for "general corporate purposes", including working capital, operating expenses and capital expenditure.

According to the document, Levis plans to expand its influence in emerging markets such as China, India and Brazil.

The Chinese market accounts for about 20% of the global garment market, but the Chinese market only accounts for 3% of Levis revenue.

The documents show that some of the proceeds will also be used for acquisitions or other strategic acquisitions, but the company says it has no plans to do so at the moment.

Levis was first launched in 1971, but it was privatized in 1985.

After that, the company has been trying to adapt to changes in fashion trends and industry competition. It was not until 2011 that CEOChip Bergh took office that the company got back to the right track.

In recent years, the "sports and leisure wind" has become popular, and the increase in consumer buying of sportswear has weakened the purchasing power of jeans.

Bloomberg analyst Chen Grazutis pointed out that LevisStrauss hopes to expand the market in the fierce competition of jeans industry. Although consumers tend to buy sportswear at present, the jeans market has improved somewhat compared with one or two years ago, showing "stable, low single digit growth."

The development of overseas markets is very important for Levis because 45% of its sales come from overseas.

In 2018, sales in the European region increased by 20%.

In 2018, Levis earned $5 billion 580 million, an increase of 14% over the previous year and a net income of $283 million.

In 2018, the debt of the company decreased by half from 2011, from 910 million US dollars to 444 million US dollars.