Investing.com -- Levi Strauss (NYSE: LEVI ) has announced it will sell its Dockers brand to Authentic Brands Group for a sum of $311 million, which could potentially increase to $391 million. The final sale price is contingent on Dockers’s performance under its new ownership, with a possible $80 million earnout opportunity.

The sale is part of Levi’s ongoing strategy to focus on its direct-to-consumer approach and expand its international presence. Dockers, known for its khakis and men’s business-casual wear, has been a significant part of Levi’s portfolio. The decision to sell comes as Levi seeks to improve areas where it has underperformed, according to Chief Financial Officer Harmit Singh.

Authentic Brands Group plans to expand Dockers across various categories, building on the brand’s legacy and loyal consumer base. Levi’s Chief Executive, Michelle Gass, continues to align the company with its namesake brand, as part of this strategic shift.

The sale, subject to standard closing conditions, is set to close around July 31 for Dockers’s intellectual property and operations in the U.S. and Canada. The remaining operations are expected to be sold on or around January 31, 2026.

Levi also plans to offer transition services to Authentic and its partners for a limited period. The company intends to use approximately $100 million from the sale proceeds for stock repurchase.

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