Levis warns of sales pressures as antiAmerican sentiment rises and consumers seek alternatives

The iconic denim brand Levi’s has sounded the alarm over rising anti-American sentiment and its potential impact on overseas sales. The warning comes as mounting political tensions and trade policies emanating from the United States appear to be influencing consumer behaviour in key international markets.

Founded in San Francisco during the California Gold Rush, Levi’s has long been woven into the history of American popular culture, with its jeans famously sported by celebrities ranging from Marlon Brando to Beyoncé. Today, the company operates around 3,400 stores across 120 countries. Yet, senior figures within its UK operations have cautioned that the turbulence caused by the Trump administration could propel a shift among customers towards British and European brands.

In recently filed accounts for its UK division, Levi’s noted a “risk of rising anti-Americanism as a consequence of the Trump tariffs and governmental policies with consumer preferences possibly shifting away from US products and brands increasing the willingness to substitute and buy national or European products”. The company has joined other American businesses in expressing concerns about the potential for boycotts and declining demand overseas.

Levi’s UK division reported improved financial results, with turnover increasing from £89 million to £96.8 million and pre-tax profit rising from £7.8 million to £9.6 million in the year to November. Still, it has grappled with significant challenges, including a cost of living squeeze that has redirected value-conscious shoppers from high street stores to outlet centres. The company also cited higher labour costs as a result of an increase in the minimum wage and a shortage of retail staff, noting that the job market is squeezed by the appeal of flexible working arrangements in other sectors.

Headcount at the Northampton-based subsidiary fell from 1,857 to 1,630 over the course of the year. Traffic in stores was described as flat or in decline, with persistent bargain hunting steering consumers away from full price locations. Despite these pressures, Levi’s is pressing ahead with plans to open 400 additional locations globally, signalling continued confidence in its long-term strategy. The UK remains a stronghold with over 70 stores and a loyal clientele.

The company’s evolution from jeans maker to a broader “denim lifestyle” brand, with increasing focus on womenswear, has been rewarded by the stock market, with shares climbing by 80 per cent over the past five years. The Haas family, descendants of founder Levi Strauss, continue to preside as the largest shareholders. Levi’s believes its business model will further enhance brand recognition and place it ahead of close rivals.