The price of Cotton is up dramatically as another raw material joins the inflation frenzy. Axios points out some good news for Levis:
Levi Strauss uses 2 pounds of cotton in every pair of pants, CFO Harmit Singh said on Wednesday’s earnings call.
- To help cover its skyrocketing costs for the material, the company has raised its average selling prices by more than 10% over 2019 levels.
The big picture: Despite higher costs, lean inventories and shoppers’ willingness to pay up are helping big companies continue to grow.
Levi’s gross margins were a record 57.5%