Dive Brief:
- Following its 2021 acquisition by Levi Strauss & Co., Beyond Yoga is opening its first brick-and-mortar store by the end of this year, the company announced on Thursday.
- The company has not disclosed the location of the first store or any other details about it, but said that it would do so “soon.”
- The company’s decision to open a permanent store follows the brand’s pop-up shop, which was open between June 25 and July 24. During the pop-up, the brand hosted a Balacize workout class with Bala and a Moms Meet-Up with Fashion Mama’s founder Natalie Alcala, along with other in-store events, per the press release.
Dive Insight:
During the pop-up shop, Beyond Yoga said it connected with more consumers, two-thirds of whom were new to the brand. The company also said that its Midi HighRise Legging, Slim Racerback Cropped Tank and Focus Cropped Tank were the top performing items during the pop-up event.
“Our pop-up store perfectly exemplified the ethos of the brand, and I’m extremely proud of the team’s passion and dedication to deliver such an amazing experience for our consumers,” Michelle Wahler, co-founder and CEO of Beyond Yoga said in a statement. “Our success proves the opportunity ahead to become a $1 billion brand, and I’m thrilled to continue our momentum in the physical world of retail.”
In 2021, Levi Strauss & Co. announced its acquisiton of Beyond Yoga for an undisclosed sum to expand its women’s business. The company said it planned to set aside resources and infrastructure to develop the digitally-native yoga brand. At the time, the company expected the brand to bring in $100 million in net revenue in fiscal year 2022.
In the early days of the pandemic, the demand for comfortable clothing was expected to rise, and that trend has seemingly benefited Levi’s. The company reported a 15% bump in Q2 net revenue year-over-year to $1.5 billion. Its direct-to-consumer revenues increased 16%, and its e-commerce rose by about 3%.
During the Q2 earnings call, Levi’s president and CEO Chip Bergh said that Beyond Yoga’s dresses, pop colors, prints and Mommy & Me collection sold out in the first week. He also said that U.S. denim sales had increased 19% over the previous year ending in May, a trend likely driven by the coronavirus pandemic.
“In terms of diversifying our portfolio ... we are focused on significant market opportunities in underpenetrated high gross margin parts of our business that can drive strong growth even in these times of macro uncertainty,” Bergh said during the earnings call. “The opportunities here are tremendous, with untapped potential across women’s, tops, international and our Other Brands, Dockers and Beyond Yoga. This quarter, we made progress across each of these areas of focus.”
