At the foot of Telegraph Hill in San Francisco, in a renovated grain mill with soaring ceilings and wooden beams, Bart Sights is refining his recipes for denim. In his hands, stained dark blue from day after day of plunging fabric into buckets of indigo dye, he holds a list of steps for creating a particularly vexing style: women's skinny jeans. Most such jeans contain so much synthetic fiber they appear slick, cheap, and unlike real denim. Sights has been searching for a way to give the fabric just the right amount of stretch, in just the right places-enough to flatter the figure, but not so much that they stop looking like jeans. Sights is Levi Strauss's senior director for technical innovation, and the Telegraph Hill space is the company's research and development lab. There, Levi's is overhauling its namesake brand's entire women's line. The company, founded in 1853, has survived the Civil War, the Great Depression, and other epochal threats, but in the last two years it's been tormented by an enemy none of its executives saw coming: yoga pants. "I don't even say the words," Sights says. Comfortable and flattering at the same time, athletic pants last year sold in about equal numbers to jeans for the first time in the U.S., according to market researcher NPD Group, as revenue from women's jeans fell 8 percent. At Levi's, the yoga pants scourge is especially vexing, disrupting a turnaround plan by a new chief executive officer that had been showing signs of success.
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