US market fell before trading on Wednesday, focusing on Levi Strauss selling Dockers

The sale plan will be completed in two phases; the Dockers business in the United States and Canada will change hands by the end of July this year, and the rest of the global business is expected to be completed in January 2026.

Levi Strauss said it would use the $100 million of the cash obtained from the sale plan to repurchase the group's own shares.

According to regulatory filings filed by Levi Strauss with the U.S. Securities and Exchange Commission (SEC), the Dockers brand accounts for 5% of the group's total net turnover each year in fiscal 2024, 2023 and 2022. (Reuters)

In fact, as early as October last year, Levi Strauss announced its intention to sell its poorly performed Dockers brand so that it can focus on its other core brands and increase sales through direct sales stores at full price. But this plan was not truly implemented after more than half a year.

Levi Strauss CEO Michelle Gass said in a statement: "This Dockers deal can further align our portfolio with business strategic priorities. We should focus on direct-to-Consumer-first strategies to expand our international presence and find appropriate investment opportunities in women's clothing and denim."

Wednesday (May 21) Focus:

time-honored denim clothing maker Levi Strauss & Co announced overnight that the group will sell its apparel brand Dockers to the Authentic Brands Group, the parent company of Reebok and Van Heusen, for $311 million. After selling Dockers, Levi Strauss will focus on its flagship brands Levi’s and Beyond Yoga sportswear collections.

According to regulatory filings filed by Levi Strauss with the U.S. Securities and Exchange Commission (SEC), the Dockers brand's annual turnover in fiscal years 2024, 2023 and 2022 is roughly 5% of the group's total net turnover.

Levi Strauss & Co Major index futures in the U.S. Wall Street stock market fell on Wednesday (May 21). At the 7:00 deadline, the Standard & Poole 500 futures fell by 37.50 points or 0.63% to 5903.00 points; the Nasdaq 100 futures, dominated by technology stocks, fell 134.30 points or 0.63% to 21,233.10 points; the heavyweight Dow Jones Index futures also fell 369.20 points to 42,308.00 points. U.S. stocks fell overnight (Tuesday), reflecting the market's Standard & Poole 500 also ended its six consecutive trading days of upside. The Standard & Poor 500 index fell 23.14 points overnight to close at 5940.46 points. The Dow Jones Index fell 114.83 points and closed at 42,677.24 points. The Nasdaq 100 index also fell by 0.37% or 79.68 points, closing at 21,367.37 points. Overnight trading in the U.S. stock market turned slightly quiet, with the exchange's total trading volume of 16.14 billion shares, which is less than the average trading volume of 17.38 billion shares in the past 20 days. Pre-market trading focus: The Wall Street Journal reported that chip parts maker Wolfspeed Inc is preparing to file for bankruptcy protection in the next few weeks due to too much debt. After the news spread, Wolfspeed Inc's stock price plummeted 56.23% before the trading session tonight, at $1.37. Nvidia's shares fell 1.08% before trading tonight, with a deadline of $132.93. Its CEO Jan Hsung, who once again criticized the U.S. for restricting company chip exports to China at a press conference held in Taiwan overnight. He said the U.S. measure to prevent China from obtaining Nvidia's artificial intelligence chips "failed." Shares of electric vehicle giant Tesla rose 0.14% before trading tonight, with a deadline of $344.30. Its CEO Elon Musk said he will continue to drive the company and expects to continue as CEO within five years. He also said that he would withdraw from politics soon. Wednesday, let's take a look at the details of the time-honored denim clothing manufacturer Levi Strauss & Co. for sale Dockers. The stock rose 0.17% before trading tonight, and was reported at $17.87. Pre-market active stocks are in sequence: Wolfspeed Inc, Nvidia, Tesla, Lucid Group and Plug Power. At the time of press time, except for Tesla's stock price rising, the stock prices of the other four active stocks all fell. (NYSE: LEVI)

As the retail industry is becoming weak, many retail groups are rectifying their business. In addition to Levi Strauss, sportswear retail chain Foot Locker recently sold Dick’s Sporting Goods for $2.4 billion. Earlier this month, sneaker maker Skechers USA also agreed to be acquired by investment firm 3G Capital, at a purchase price of between $9 billion and $10 billion.