Levi Strauss plans to sell Dockers operations in Mexico and Europe by the end of February 2026.
The initial sale was agreed at $311 million, with a potential $391 million in incentives. On July 31, 2025, the total transfer of intellectual property and operations in the United States and Canada was completed.
In general and in the future, the company reported that it may divest certain product lines that no longer fit its long-term strategies.
Dockers operations in Mexico
Levi Strauss signed a definitive agreement to divest its Dockers business. On July 31, 2025, it sold the intellectual property and operations in the United States and Canada, marking a significant shift in its corporate strategy.
Subsequently, the company completed the sale of Dockers in the Andes, Malaysia, and Turkey on January 30, 2026. In addition, it expects to complete the divestiture of its operations in Europe and Mexico around February 27, 2026.
In 2025, Levi Strauss reported revenue of $6.282 billion, compared to $6.032 billion in 2024 and $5.842 billion in 2023. The 4.1% growth was driven by the Direct-to-Consumer channel.
In the global fashion market, the company faces intense competition. Its main rivals include VF Corporation, with Wrangler and Lee; PVH Corp., with Calvin Klein and Tommy Jeans; as well as American Eagle Outfitters and Gap Inc.
Likewise, fast fashion chains such as H&M and Zara are putting pressure on the competitive environment through low prices and rapid trend cycles, increasing rivalry in key segments of the apparel market.
Risks
Divestitures, including the sale of the Dockers business, could negatively affect the company’s performance. This would occur if the expected benefits do not materialize or if the loss of revenue associated with the divested lines is not offset.
Furthermore, even if they do not materialize, these processes may have adverse effects. These include higher costs and expenses, possible operational disruptions, diversion of management attention, increased staff turnover, and a negative impact on current and future business relationships.