Denim maker Levi Strauss & Co. is scaling up investment in its stores and website and women’s apparel, to reach a revenue target of $9 billion to $10 billion by 2027. The brand also plans to expand direct-to-consumer sales and triple ecommerce sales by 2027.

In a new set of strategic targets, Levi now expects sales growth of 6% to 8% annually. That would be up from its prior goal of 4% to 6%. The retailer also expects its website and retail stores to generate 55% of annual sales, compared with the 39% they generated in the first quarter.

In a statement, Levi said it has adopted a direct-to-consumer-first strategy and plans to “accelerate investment in stores, online platforms and other digital capabilities while creating an integrated omnichannel shopping experience.” The statement did not specify how much Levi plans to spend.

Levi also plans to diversify geographically and in merchandise variety. For example, it aims to nearly double the revenue it gets from women’s apparel, which currently comprises about a third of sales. The denim maker predominantly catered to men when CEO Chip Bergh joined the company about a decade ago, Harmit Singh, chief financial officer, told Bloomberg News. The retailer recently acquired Beyond Yoga, a women’s sportswear brand.

Levi’s revenue was $5.8 billion in the fiscal year ended in November 2021. The announcement comes ahead of the San Francisco-based brand’s meeting with investors Wednesday. Levi ranks ranks No. 196 in the 2022 Digital Commerce 360 Top 1000.

Levi-branded sales channels

While the company will continue offering products via other retailers, it wants to emphasize sales via its own channels. They are more profitable and offer more data about customer shopping habits. Levi will seek to boost the visibility of that brand, along with its Dockers and namesake brands, Levi said in a statement ahead of the meeting with investors.

“We’re intentionally focused on more premium customers, more digital customers,” Bergh said in an interview with Bloomberg. “And that mix has resulted in a more profitable wholesale business for us.”

Levi has consistently posted profits and sales that topped analyst expectations in recent quarters, according to Bloomberg. After being a privately held company for more than 30 years, Levi went public again in 2019. Levi also said on Wednesday it plans to buy back $750 million in stock.

Levi says it sells products in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites and approximately 3,000 brand-dedicated stores and shop-in-shops worldwide.

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