The news: Levi Strauss has agreed to sell its Dockers brand to Authentic Brands Group for $311 million, with the total deal value potentially reaching $391 million based on Dockers’ future performance.

Why it matters: The sale reflects Levi Strauss CEO Michelle Gass’ push to streamline the company’s portfolio and focus on its core Levi’s brand and athleisure label Beyond Yoga.

It follows earlier exits from the Denizen fashion line and a European footwear business.

The backdrop: As khakis lost favor in the US, Dockers tried to expand into more tops and bottoms—bringing it into direct competition with Levi’s and weakening the parent brand’s focus.

The buyer: Authentic Brands, which owns labels like Nautica and Eddie Bauer, is known for acquiring heritage brands with high name recognition and licensing potential. With a network of over 1,700 global licensing partners, Authentic plans to grow Dockers through innovation, omnichannel expansion, and international reach.

Our take: The deal looks like a win-win. Levi Strauss can double down on its core growth engines, while Dockers gets a fresh start under a company built to scale legacy brands into new markets.

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