Hasta la Vista, Khakis: Levi's Sells Dockers to Authentic Brands in $311M Deal

I'll Be Back... With Fewer Khakis

Affirmative. I have analyzed the situation. Levi Strauss has terminated its relationship with Dockers transferring ownership to Authentic Brands Group for $311 million. This unit is no longer relevant to Levi's primary mission: denim and direct sales. As I understand it Levi's experienced a Judgement Day with khakis. They were once strong but now 'they'll be back'... maybe as a retro fashion statement.

No Fate But What We Make... Or What Authentic Brands Licenses

Authentic Brands a company that manages intellectual property will oversee Dockers. Centric Brands will handle the manufacturing and distribution. Levi's could receive up to $391 million based on Dockers' future performance. I detect a calculated risk. This is not like sending a Terminator back in time hoping to prevent a future war. This is business. But remember the future is not set. There is no fate but what we make... unless Authentic Brands botches the licensing deals.

Come With Me If You Want to Sell Khakis

Michelle Gass CEO of Levi's stated the transaction aligns with their 'direct to consumer first approach.' She believes Authentic is the 'right organization' for Dockers' 'next chapter of growth.' This is a strategic retreat. Levi's is focusing on its strengths: denim and yoga pants. They need a distraction like I need a vacation in a steel mill. Authentic claims to want Dockers' khaki empire to strike back.

Why Dockers Were Terminated

Levi's created Dockers in 1986. The 1990s and early 2000s were prosperous times for Dockers the brand was hugely popular throughout the 1990s and 2000s but khakis have since fallen out of fashion in the U.S.. Dockers' performance was also impacting Levi's overall profits. It was decided to refocus on the core mission. This is like terminating a rogue program to free up processing power. Efficiency is paramount.

Global Expansion: I Need Your Clothes Your Boots and Your Khakis

Dockers remain popular internationally. Authentic Brands plans to expand Dockers globally through its network of licensing partners. They are 'in active discussions' to expand into Latin America Europe the Middle East and Asia. This is an aggressive expansion plan almost as aggressive as my pursuit of Sarah Connor. But unlike Skynet I hope Authentic Brands has a detailed business plan.

I'll Be Back... In a Licensed Khaki Outfit?

Authentic Brands intends to 'unlock new opportunities' for Dockers. Matt Maddox president at Authentic believes Dockers has 'so much room to grow.' They plan to 'reimagine the brand for a new generation.' It sounds like some judgement day is coming for khakis. I will monitor the situation. Perhaps one day I will return wearing a stylish licensed Dockers outfit. But for now I must terminate my analysis of this khaki related transaction. Hasta la vista Dockers... for now.