Weekly "Focus" and Bell-Bottom Jeans

A fashionista I am not! I visit malls out of necessity and try to get out of there as soon as possible. I heard recently that bell-bottom jeans are back in fashion and that even Brad Pitt has been spotted wearing them. Bell-bottoms (or now known as “flared” jeans) originated as a navy uniform and were a staple in the wardrobes of hippies in the 1960s and 70s. Levi’s are perhaps the best-known brand of jeans, and the company has been in business for over 150 years. Their big innovation was using copper rivets to reinforce the pants and Levi 501s are the iconic model. Kontoor Brands, maker of Lee and Wrangler jeans reported results this week that were underwhelming (maybe needed a belt to hold them up). To improve profitability, they announced “Project Jeanius” as a strategic, multi-year plan although I can honestly say I will not be buying any of their bell-bottoms.

 

Company		Brands		Return in 2024
American Eagle Outfitters* (AEO)		American Eagle		+11.3%
Gap* (GPS)		Gap		-7.0%
Kontoor Brands (KTB)		Lee, Wrangler		-9.8%
Levi Strauss (LEVI)		Dockers, Levi’s		+9.3%
PVH* (PVH)		Calvin Klein, Tommy Hilfiger		+12.0%
Ralph Lauren* (RL)		Ralph Lauren		+27.1%

Source: FactSet

 

This week’s "Focus" from our economics team is attached.

 

Have a great weekend,

 

Brad

Senior Portfolio Manager and Senior Investment Advisor