Buh-bye, skinny jeans: Levi's is embracing a baggy look

Comfy clothing is what consumers want now, and Levi's is ready to deliver with more generous-fitting and downright baggy jeans this year.

The iconic American denim brand said it's helping facilitate the switch from skinny to baggy.

"I think we're kind of leading this trend to some extent," Levi Strauss CEO Chip Bergh told analysts Wednesday on a call discussing the company's fourth-quarter results. "The line that we launched [is] a loose-fit line this past season. It's in our stores now [for] both men and women. It's sort of a loose, straight fit, and it's off to a very, very fast start."

Bergh also called out the "trend towards more casual, looser fitting clothes in general."

That change in style still hasn't been enough to lift sales. Levi's on Wednesday reported fourth quarter sales, which included the year-end holiday shopping season, of $1.39 million for the period ended Nov. 29, down 12% from the same period a year ago.

As with most retailers, Levi's attributed the decline primarily to pandemic-triggered store closures and a drop in customer traffic in its own stores and other outlets that carry its branded denimwear. Levi's stock was down 8% Thursday.

Looking forward to what factors will drive demand for jeans in 2021, Bergh said the need for "casualization" will be a prominent.