Levi Strauss to Sell Dockers Brand to Authentic Brands Group in Deal Worth Up to $391 Million

The sale is expected to close for U.S. and Canadian operations by July 31.

Published: 5/20/2025, 10:34:11 PM EDT

The label of a Levi's denim jacket of Levi Strauss at a denim store in Frankfurt, Germany, on March 20, 2016. (Kai Pfaffenbach/Reuters)

Levi Strauss & Co. has reached an agreement to sell its Dockers brand, once synonymous with the rise of “Casual Fridays,” to Authentic Brands Group in a transaction that could total as much as $391 million, according to company statements released Tuesday.

The deal will begin with an initial payment of $311 million and includes the possibility of an additional $80 million based on Dockers’ future performance under its new ownership, the companies said in a joint press release.

The sale is expected to close for U.S. and Canadian operations by July 31, pending customary closing conditions, and for the remainder of Dockers’ global operations by Jan. 31, 2026.

The decision to part with Dockers comes as Levi Strauss intensifies its focus on its flagship Levi’s brand and the Beyond Yoga line, which it acquired in 2021, in response to shifting consumer preferences toward athleisure and more relaxed apparel.

Michelle Gass, president and CEO of Levi Strauss & Co., said the transaction “further aligns our portfolio with our strategic priorities, focusing on our direct-to-consumer (DTC) first approach, growing our international presence and investing in opportunities across women’s and denim lifestyle.”

“After a robust process, we are confident that we maximized the value of the business and that Authentic is the right organization to usher in the next chapter of growth for the Dockers brand,” she added.

The company stated it plans to return approximately $100 million of the net proceeds from the sale to shareholders through share repurchases, consistent with its capital allocation strategy, according to the press release.

Dockers: From Office Staple to Changing Tastes

Launched in 1986, Dockers quickly became a go-to choice for office workers seeking an alternative to formal business attire, helping to popularize the “Casual Friday” movement in the 1990s. The brand’s khakis and relaxed shirts became widely recognized as symbols of the dressed down office culture that swept through corporate America.

However, Dockers has faced mounting challenges in recent years, particularly after the onset of the COVID-19 pandemic. As many employees shifted to working from home, demand for traditional office wear declined in favor of more comfortable options such as yoga pants and athleisure.

Even as some workers return to the office, dress codes have remained more relaxed than in previous decades, according to previous reports from the Associated Press.

Levi Strauss began evaluating “strategic alternatives” for Dockers in October of last year, citing underperformance as a key factor.

Authentic Brands Group Sees Growth Potential

Jamie Salter, founder and CEO of New York-based Authentic Brands Group, described Dockers as a “natural fit” for the company’s portfolio.

“It’s a brand with deep roots, high awareness and a solid foundation in licensing—all things we look for when acquiring new brands,” Salter said. “Dockers played a key role in shaping casual workwear as we know it today, and we see significant potential to build on that legacy and grow the brand across a variety of categories.”

Authentic Brands Group, known for acquiring and revitalizing established names, will assume control of Dockers’ intellectual property and operations following the transaction’s completion. Levi Strauss will provide certain transition services to Authentic and its partners for a limited period, according to the press release.

Financial Performance and Future Outlook

Levi Strauss reported net revenues of $6.4 billion and a profit of $210.6 million for its 2024 fiscal year, according to company disclosures. The company, which markets apparel under the Levi’s, Denizen, Beyond Yoga, and Dockers brands, operates in approximately 120 countries and maintains a global retail footprint of about 3,400 stores and shop-in-shops.

BofA Securities, Inc. served as financial adviser to Levi Strauss, with Cleary Gottlieb Steen & Hamilton LLP providing legal counsel, according to the press release.