Levi’s stock rose 20% Thursday, boosted by a new Beyoncé song called “Levii’s Jeans.”
The track appears on the singer’s new country album “Cowboy Carter,” released last month. The duet, featuring Post Malone, runs slightly over 4 minutes and includes several references to Levi’s jeans.
“I would just say that denim is having a moment and the Levi’s brand is having a powerful moment around the world,” Levi Strauss CEO Michelle Gass said.
“One of the things that really is significant about the Levi’s brand and we place a lot of emphasis and investment is making sure that Levi’s brand remains in the center of culture. And I don’t think there’s any better evidence or proof point than having someone like Beyoncé, who is a culture shaper, to actually name a song after us,” Gass added in response to an analyst question about the song’s effect on sales.
New Levi’s products including denim skirts and pants other than jeans have also improved company sales.
Levi’s capitalized on its Beyoncé-fueled moment by changing its account name on Instagram to “Levii’s” to reflect the spelling of title of her new song.
The company benefited from “a nod from cultural icon Beyoncé in her new song ‘Levii’s Jeans,'” Wells Fargo equity analyst Ike Boruchow wrote in a research note shared with CBS MoneyWatch.
“Beyoncé’s influence has been all organic and is clearly having positive impacts” on the denim category and Levi’s in particular, he added.
The Houston native’s eighth album features 27 song tracks and guest appearances from some of country music’s biggest stars, including Willie Nelson, Miley Cyrus and Dolly Parton, whose 1973 hit “Jolene” is one of two covers featured.
Levi’s stock was down 1.4% on Friday afternoon, trading at $20.69.
Source : Cbs News
