Despite consumers becoming more cautious with spending and rising production costs squeezing profit margins, denim brands have emerged as one of the few players still showing growth.
Levi Strauss & Co. had a strong start to the year with net revenues up 3 percent on a reported basis and 9 percent on an organic basis compared to the first quarter of the year. The Levi’s brand alone posted an 8 percent increase in organic global sales.
Wrangler also notched gains, with global revenue up 3 percent to $420 million, while Gap Inc. saw a 2 percent rise in both net and comparable sales, totaling $3.46 billion in the first quarter of fiscal 2025.
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The momentum isn’t limited to a handful of players either. The global jeans market is projected to reach roughly $91.2 billion this year, with steady growth expected in the years ahead, according to the Denim Jeans Market trends analysis report.
So, with denim showing no signs of slowing down, what factors are fueling its resilience in a market where most categories are losing steam?
Well, according to Greg Petro, CEO of First Insight, the denim players seeing the strongest momentum are the ones expanding their offerings and services beyond jeans.
“What we’re seeing isn’t just diversification for revenue’s sake—it’s about loyalty, frequency, relevancy and pulling the next generation into the brand,” Petro told SJ Denim. “Denim is often a seasonal or twice-a-year purchase, but categories like beauty and accessories are bought far more frequently and are generally considered lower risk. If retailers can get a shopper to add a fragrance, mini lip gloss or travel spray while they’re buying jeans, you’ve grown both the trip frequency and the basket size.”
For Citizens of Humanity, product expansion was an opportunity for the Los Angeles-based brand to bring its regenerative agriculture story into home goods. In August, the brand partnered with Moda Operandi to launch an exclusive line of denim placemats, napkins, coasters a farmer’s market tote and apron.
A press trip last year to Bloom Farm, a 300-year-old property in Pennsylvania’s Oley Valley, hosted by Citizens of Humanity, inspired the collection.
Licensing deals are another way that denim brands are extending their reach into new categories.
Wrangler offering everything from blankets and pillows to sheets, luggage, duffle bags, knives, lunch boxes and more through licensing partnerships. By diversifying into these categories, the brand is strengthening its position as what Douglas Parker, director of licensing at Wrangler, calls a “360 lifestyle brand—one that builds the kind of loyalty that can last generations.”
“The ‘Wrangler way of life’ isn’t just about what you wear; it’s a mindset rooted in authenticity, comfort and durability,” Parker told SJ Denim. “By offering products like bedding and home décor, we’re not just selling a blanket or a pillowcase. We’re providing a way for our loyal fans to infuse their homes with the same heritage and quality they trust in our denim. It’s about taking the feeling of a well-worn pair of Wrangler jeans and extending that comfort into the most personal spaces of their lives.”
This year, the Kontoor Brands-owned label partnered with companies like tech accessories company, WITHit, to launch Apple Watch bands and phone cases.
“This expansion is about creating new touchpoints for consumers and deepening their emotional connection to the brand,” Joe Broyles, vice president of collaborations at Wrangler, told SJ Denim. “When a customer can find a Wrangler-branded product in multiple areas of their life…it reinforces the idea that Wrangler is a trusted companion for any adventure [and] turns a product purchase into a brand relationship.”
Broyles added that Wrangler is “Essentially transitioning from a brand people wear to a brand people live. This strategic expansion allows us to extend our brand equity and connect with consumers in a way that goes far beyond a single pair of jeans, building a more expansive and enduring legacy for the next 75 years.”
The strategy has also paid off for partners. WITHit calls its licensing deal with Wrangler a “pivotal moment for the business.”
“[Wrangler] embodies a legacy of authenticity, craftsmanship and durability that has resonated with generations of consumers,” said Bill Devaney, chief operating officer and co-founder of WITHit. “By extending their influence into wearable technology accessories, we’re giving consumers the chance to experience the brands they know and love in fresh and relevant ways.”
Expansion comes with a cautious approach. According to Parker, Wrangler uses a “rigorous, multi-stage approval process” to ensure every licensed product upholds the brand’s quality and design standards.
Beyond revenue, the company also measures success through social engagement, repeat purchases and cross-category shopping—whether that’s a customer who first encounters Wrangler through a collaboration and later returns for denim or home goods.
“For us, a strong licensing partnership isn’t just a business transaction; it’s a deep, strategic connection. The most important factor is finding a partner who truly understands and respects the brand’s core values,” Parker said. “It’s not about slapping a logo on a product—it’s about ensuring the licensee shares our commitment to quality, authenticity and the ‘Wrangler way of life.’ We look for partners who can translate the rugged durability and timeless style of our denim into their own categories, whether that’s footwear, home goods or other lifestyle items.”
Lee is also expanding reach through new licensing deals.
Last year, the Kontoor Brands-owned U.S. heritage brand announced that it entered a licensing agreement with U.S. footwear manufacturer, wholesaler and retailer Jack Schwartz Shoes, marking the first major expansion into footwear for the brand.
Steve Armus, Kontoor’s vice president of global licensing and collaborations, said it focuses on contemporary takes on athletic and casual styles including a classic court sneaker, basketball and skate-inspired designs, a casual comfort/city sneaker and a heritage lace-up boot inspired by ’90s footwear. He added that each style balances style and value, offering a variety of options for our customers.
“Our partners align with our commitment to quality and craftsmanship and appreciate the heritage that Lee has. They understand our target audience, and how the brand is evolving through our new creative vision and the global ‘Built Like Lee’ campaign,” Armus said. “[Like Lee], Jack Schwartz Shoes has a long-standing heritage and is an expert in this industry. They understand how to create quality products that provide value.”
Furthering its commitment to outfitting customers beyond denim, Lee has also branched into home goods and travel accessories, including luggage. Most of its accessories today—including socks, belts, wallets and hats, to name a few—are designed to complement its mainline collections, according to Armus, and are distributed both through Lee.com and mid-tier or value retailers.
“It’s important to understand our target audience and what they want,” Armus said. “Our global ‘Built Like Lee’ campaign is grounded in research on today’s denim enthusiasts and how they’re discovering Lee.”
Other denim players are taking a different route, moving into entirely new markets like beauty, which is projected to surpass $100 billion in revenue this year, according to Euromonitor.
Just last month, Gap Inc. announced its expansion into beauty and accessories, calling it a way to reinforce [its] commitment to becoming a high-performing house of “iconic American brands that shape culture.”
Gap’s entry will begin with a “test-and-learn” rollout at Old Navy this fall, including curated assortments of beauty and personal care products in 150 stores. Select locations will feature dedicated shop-in-shops staffed by Beauty Associates. By 2026, Gap plans to scale the business within Old Navy while introducing “brand-right” beauty concepts across its broader portfolio, the brand noted.
The company will also merchandise its private-label products alongside established names like e.l.f. and Mario Badescu—a move analysts say can help build shopper trust.
“When a private-label line sits next to established names, it gives shoppers permission to believe the quality is there,” Petro said. “But credibility alone isn’t enough—discovery has to feel easy and low-risk. That’s why trial sizes, bundles and introductory offers are so effective; they make it simple for shoppers to experiment. And when those products are tied to the core shopping mission—offered as an add-on to apparel or accessories—it builds trial, bigger baskets and loyalty across categories.”
On top of beauty, Old Navy reintroduced its handbag range—the brand’s most cohesive lineup to date. Spanning three collections, the bags offer refined materials, clean lines and thoughtful utility details.
“We drew inspiration from beloved designer styles, but made each piece uniquely Old Navy, creating a cohesive assortment that can’t be found anywhere else. Our goal was to create durable bags designed for every moment in life—all at an accessible price point that delivers incredible value,” said Zac Posen, Old Navy chief creative officer.
While expanding into new categories seems to be paying off for Kontoor and Gap Inc., not every apparel brand will be successful.
In fact, nearly 80 percent of new products fail, Petro noted, often because retailers lean too heavily on instinct or chase fleeting trends. The rare successes, he added, are the brands that bring customers into the process from the very beginning.
“Retailers must ask consumers what feels authentic, test concepts and validate pricing and positioning. When customers and artificial intelligence [AI] are part of the process, the odds of success rise dramatically,” Petro said. “Expanding into new categories is not just about adding more stock keeping units [SKU]—it’s about extending a brand’s identity in a way that feels natural to the customer. The retailers that succeed will be the ones with a strong community, a clear lifestyle point of view and the discipline to execute consistently.”
Success will also hinge on how well brands connect with the next generation of shoppers.
Petro noted that younger consumers—specifically Gen Z, with an estimated global spending power of more than $450 billion in 2024, and Gen Alpha, whose annual direct spending power topped $100 billion by mid-2025, according to Statista—see brands as more than just product providers. To them, Petro said, brands function as cultural markers.
“Gen Z and now Gen Alpha expect the brands they trust to extend naturally into other parts of their lives, and they’re quick to reward those that feel authentic in doing so,” Petro added. “That means loyalty isn’t tied to a single category, but to whether a brand reflects their lifestyle and values—a much higher bar, and one that only a handful of apparel players are likely to clear.”
This article was published in SJ Denim’s fall issue. Click here to read more.
