Levi Strauss sells Dockers brand to Authentic Brands Group for $311 million

Levi Strauss & Co. has agreed to sell its Dockers brand to Authentic Brands Group for $311 million in a deal that reflects Levi’s ongoing shift in strategy toward focusing on its core denim business. The announcement came Tuesday, marking a significant move for the iconic apparel company as it seeks to streamline its portfolio and strengthen its direct-to-consumer operations.

The sale includes Dockers’ intellectual property, which will now be owned by Authentic, while Centric Brands will handle manufacturing, sourcing, and distribution. This model, often used by brand management firms, separates ownership from day-to-day operations and allows Authentic to license Dockers to global partners for expansion.

Levi Strauss first signaled its intent to offload Dockers in October 2024. CEO Michelle Gass, who took leadership a little over a year ago, has been focused on refining the company’s brand strategy by prioritizing its Levi’s banner and other high-growth categories like its athleisure line Beyond Yoga. The sale of Dockers is seen as part of that effort to reduce overlap and concentrate on areas with higher potential for growth.

Gass said the deal aligns with Levi’s long-term strategy. “The Dockers transaction further aligns our portfolio with our strategic priorities, focusing on our direct-to-consumer first approach, growing our international presence and investing in opportunities across women’s and denim lifestyle,” she said in a statement.

Dockers was created by Levi’s in 1986 to provide a non-denim option for consumers, particularly khaki pants, which became a staple of 1990s casualwear. However, in recent years, khakis have fallen out of fashion in the U.S., where denim has regained popularity. While Dockers remained somewhat profitable, its U.S. performance has been sluggish and increasingly seen as a drag on Levi’s overall results.

In the most recent quarter ending March 2, Levi’s reported $67 million in revenue attributed to Dockers. While this figure can’t be directly compared with previous periods due to a recent change in reporting structure, it reflects a brand that no longer fits seamlessly with Levi’s strategic direction.

Despite its struggles in the U.S., Dockers remains strong in international markets. That global potential made it an attractive target for Authentic Brands Group, which specializes in acquiring well-known labels and expanding them through licensing deals. Authentic already owns brands such as Reebok, Nautica, and Forever 21 and plans to use its global network of over 1,700 partners to extend Dockers' reach.

Matt Maddox, president at Authentic, said the brand’s casualwear legacy offers a solid base for growth. “Few brands own a category the way Dockers does, yet still have so much room to grow,” he said. “Its legacy in casualwear gives it a strong foundation, but the real opportunity lies in reimagining the brand for a new generation.”

Authentic has already begun talks with operators in Latin America, Europe, the Middle East, and Asia, with plans to expand Dockers in those regions. Levi’s may earn up to $391 million over time, depending on Dockers' performance under its new owners.