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Levi's CEO: Do not put your jeans in the freezer



Bergh turned up at an event in May 2014 when he announced that he had never washed the 501 Levi jeans he was wearing at the time. He still has not washed the 10-year jeans, Bergh admitted to the live show of CNN Business & # 39; s Markets Now with Alison Kosik on Thursday.

He does not freeze his jeans either.

"This is an old woman's story," he said. "It does not work."

He also never washed or frozen the jeans he wore on the New York Stock Exchange Thursday to celebrate his company's IPO party – though he said those jeans were newer.

Bergh had much to celebrate: Levi's stock rose 33%

Why Levi's going public

It's not the first time that Levi's arrived the stock market is going. The company was privately traded from 1
971 to 1985 when it was privatized. Levi & # 39; s ( LEVI ) went public again to boost investment in China and expand into new categories.

Bergh pointed out that the company lagged its technology peers, including its online store and other digital products.

He said most fashion companies would have more choices for women, but Levi's is more known for his jeans line for men. The company has expanded its product range for women for several years, but Levi's plans to use the cash raised for the marketing and development of these products.

"The growth of our portfolio is delivering results," said Bergh.

Levi & # 39; s also wants to make a more meaningful move to China. He noted that some smaller competitors in China have been ahead of Levi's. Although 20% of the clothing industry is in China, this region represents only 3% of Levi's business.

Bergh states that Levi's jeans have been a symbol of American culture for more than a century, and young people behind the scenes after the fall of the Berlin Wall in 1989 rang an iron curtain.

"Unlike other parts of the world where this brand had a deep history, it went from generation to generation or it was a forbidden fruit that represented everything that was great America … we have this story in China not, "Bergh complained.

What market is Levi's advancing

The stock market has handled Levi well on Thursday, but not in the recent past were friendly to some of the other IPOs.

Levi & # 39; s is profitable unlike many companies that have gone public in recent years. Granted, many of them were tech companies that normally take a while to gain a foothold.

Will the market continue to support Levi's?

That's what Alicia Levine, chief strategist at BNY-Mellon, thinks. She said on Thursday's "Markets Now" that the economy will be weaker in the first quarter than in recent quarters, but will strengthen later in the year. It expects revenues to decline by about 4% this quarter, while it will grow in the rest of 2019.

Levine blamed the Fed's excessive rate hike in December and President Donald Trump's tariffs on slowing growth. However, she was encouraged that the Fed signaled a more cautious stance on Wednesday, and she believes that China and the United States will soon come to terms.

"We think this is the low point and we will see acceleration all year round," Levine said. "One reason this market faltered is that we need a trade deal, I would expect a pop [if there’s a trade deal]I do not think that's fully priced in."

"Markets Now" streams live from the New York Stock Exchange every Wednesday at 12:45 pm ET.

The 15-minute program, which is hosted by CNN's business correspondents, contains in-depth commentary from experts.

You can see Markets Now on CNN.com/MarketsNow from your desk or on your phone or tablet. If you can not watch the show live, read the highlights online and the MarketsNow newsletter, which is delivered to your inbox each afternoon.

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