You Might Have to Work from the Office Again—But Hey, They Might Let You Wear Jeans

Jeans are officially part of the office uniform.

UBS analysts described denim as a core piece of the modern workplace wardrobe, writing in a research note this week that return-to-office mandates could bolster the business, putting more commuters in jeans. U.S. consumers, the analysts wrote, may now be spending more on denim for work than formal officewear.

Job listings today include “casual” dress code descriptions more frequently than before the pandemic, according to job search platform Adzuna. UBS analysts in a research note earlier this week theorized that companies are “encouraging more casual workwear” as a way to boost productivity and encourage working in offices instead of from home.

“We expect the casualization of work attire to drive further denim adoption, particularly as consumers increase the number of days working in the office,” UBS wrote. Younger generations are particularly likely to show up to the office in denim, UBS said.

“Business professional” attire grew less common on the job in the wake of the pandemic, with suits becoming “a rarity,” according to Gallup surveys done in 2023. More workers now don business casual clothing, Gallup found, while 30% of women wear street clothing like leggings and T-shirts.

The Opportunity to Sell Denim is ‘Immense’

Sales of jeans have historically grown in the low single digit percent range, according to UBS, but the category stalled as athleisure took off in the early 2010s. Denim regained momentum by introducing pants more focused on comfort, UBS analysts said.

Demand is now being lifted by the rise in popularity of Western-style denim, according to UBS, which expects the domestic denim market to have a 2% compound annual growth rate over the next five years.

That can be credited in part to Beyonce’s Cowboy Carter album and the growing appeal of country music, UBS said. Such jeans may nod to the American West through bootcut silhouettes, chap-inspired designs, ornamental stitching and buttons or frayed edges, according to fashion publications.  

Macy’s (M), American Eagle Outfitters (AEO) and Boot Barn (BOOT) executives recently reported brisk jean sales at conferences or on quarterly earnings conference calls. Levi Strauss (LEVI) CFO Harmit Singh at a conference this month said the “opportunity is immense” in denim, according to a transcript made available by AlphaSense.

Denim is a “highly fragmented” market with many apparel companies that aren’t hyper-focused on jeans, UBS analysts said, which should benefit companies that place a bigger priority on jeans, including American Eagle, Levi’s and Kontoor Brands.