Denim Recap: Dynamic Growth Helped by Trend Shifts in Competitive Backdrop

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Denim Recap: Dynamic Growth Helped by Trend Shifts in Competitive Backdrop

2% total US), with less brand and fashion focus and a higher comfort priority. Walmart's $13

sweatpant-style jeans drop highlights how the channel is evolving to meet comfort and versatility

demand at value price points. The Walmart relationship remains highly important for Wrangler (we

estimate ~30% of KTB revenue) and an important watchpoint in our view going forward as the brand

looks to accelerate growth and WMT continues to focus on the fashion category.

10. Premium Fragmentation = Whitespace for Challengers: Premium and super premium jeans are

highly fragmented, with no dominant player and minimal share shifts. Unlike broader apparel where

polarization favors premium players, denim premium has not benefited because brands lack clear

differentiation in consumers' eyes. Our experts see this as an opportunity for challengers offering more

distinct propositions such as comfort-led, trend-driven, or elevated heritage (Levi's Blue Tab) to capture

share. RL was noted as a notable market share leader in premium that is also gaining share.

11. Int'l Markets Offer Significant Growth Oppty vs. Domestic: While the US is mature, India, Brazil,

and Indonesia stand out as denim growth markets, supported by younger female demographics and

value-focused demand. Europe is forecast to be shaped by innovation and collaborations, while APAC

and Latam will be more digitally driven, with TikTok Shop and platform-native engagement key for

reaching younger consumers. Brand heritage carries more weight in APAC than in the US, supporting

legacy players.

12. Tariffs Adding Pressure with Ltd Room to Pass Through to Consumers: Tariffs are adding