Levi Strauss & Co. announced plans to cut up to 15% of its global workforce as it restructures under new leadership.  The cuts are part of the company's global productivity initiative and are expected to take place over the first half of the year under incoming CEO Michelle Gass. The company is trying to rapidly tighten its belt as it contends with macroeconomic challenges and ongoing issues within its U.S. wholesale business.  "There's been a lot of volatility this past year, some in our control, some outs ...

KEY TAKEAWAYSLevi Strauss plans layoffs of 10% to 15% of its global workforce to cut costs.The job cuts are expected to take place in the first half of this year, with the costs of restructuring estimated between $110 million and $120 million.Levi Strauss reported its net income fell 57% from a year ago, with revenue stagnating as inflation squeezed consumers.Levi Strauss & Co. (LEVI) shares lost 1% in early trading Friday after the denim maker announced plans to cut between 10% and 15% of its workforce.The ...

Levi Strauss (NYSE:LEVI) layoffs are coming for the company’s employees in 2024 as it prepares to cut costs and save money in a tough economy.That update came in the company’s earnings report for Q4 2023. In that update, Levi Strauss said the layoffs will affect between 10% and 15% of its corporate workforce and save it $100 million this year.Levi Strauss notes that these layoffs are set to take place in the first half of 2024. The company also expects to suffer $110 million to $120 million in charges in th ...

Levi Strauss & Co has unveiled plans to cut jobs in its corporate division after reporting a fall in net income during 2023. Between 10% and 15% of the denim giant’s global corporate workforce will be cut under the move, which will aim to reduce costs and simplify organisation across the business. This will be part of a two-year initiative, Levi’s said in Thursday’s full-year results announcement, with the cuts representing the initial phase of the plan. Levi’s announced the reductions as the firm reported ...

Financial Data and Key Metrics Changes - The company reported Q4 revenues increased by 2%, with Levi's brand revenues up 4%, marking a multi-decade high driven by global brand strength [36][45] - Adjusted gross margin improved by 200 basis points year-over-year to 57.8%, primarily due to lower product costs and favorable channel mix [52][53] - Adjusted diluted EPS was $0.44, reflecting nearly 30% growth compared to the previous year [28] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) revenue grew 13% to $2.6 billion, accounting for 43% of total global revenues [19][30] - Women's business saw an 8% increase in Q4, with significant growth in women's denim bottoms and a notable 50% increase in skirts and dresses [46][48] - The Dockers brand was flat for the year but down 20% in Q4, with growth in DTC and international markets offset by weakness in US wholesale [47] Market Data and Key Metrics Changes - The Americas region saw a 4% increase in net revenues, driven by a return to growth in the US, which was up 4% [54] - Asia's revenues grew 7% in Q4, with China specifically up 13% for the quarter and 21% for the year, returning to profitability [55] - European net revenues returned to growth, up 1%, despite challenges in the wholesale channel [29] Company Strategy and Development Direction - The company is focusing on becoming a denim lifestyle brand, expanding offerings beyond traditional denim to include skirts, dresses, and tops [48][49] - Project FUEL, a global productivity initiative, aims to deliver approximately $100 million in net savings for fiscal 2024, enhancing operational efficiency [24][26] - The company plans to open over 100 new stores globally, with a focus on DTC expansion [32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, particularly in the US and Europe, while acknowledging positive trends in DTC and wholesale [42][51] - The company anticipates net revenue growth of 1% to 3% for fiscal 2024, factoring in challenges from exiting the Denizen brand and lower off-price sales [56] - Management highlighted the importance of innovation and brand strength in driving future growth, particularly in the DTC channel [44][45] Other Important Information - The company announced the strategic decision to discontinue the Denizen brand, which is expected to impact sales by about 1 point in 2024 [18] - The company has strengthened its management team with key appointments to drive future growth [14][21] - The company returned $199 million in capital to shareholders, primarily through dividends, which increased by 9% compared to the previous year [30] Q&A Session Summary Question: Can you dive into Asia's performance and the $100 million cost cuts? - Management reported strong growth in Asia, with a full-year increase of 18%, and confirmed that the $100 million in cost cuts will be realized in fiscal 2024, starting in Q2 [64][82] Question: How did Europe perform during the holiday period? - Management noted that Europe faced macro headwinds but posted modest growth, particularly in the DTC channel, which was up 10% [78][79] Question: What drove the positive performance in US wholesale? - Management attributed the positive performance to improved execution, better fill rates, and successful pricing actions taken in the previous quarter [74][36]

While competitors were hustling to land deals with retailers and forge partnerships to reach more consumers, Levi’s boldly went all-in on its direct-to-consumer (D2C) strategy in October.  “Over the last decade, the company has made phenomenal progress, more than doubling our D2C revenue while engaging consumers … in our stores,” said Michelle Gass, president of Levi Strauss & Co., during the company’s third quarter earnings call on Oct. 5. Read more: Levi’s Puts Its Faith in D2C Strategy With Loyal Shopper ...

Levi Strauss (LEVI) reported $1.64 billion in revenue for the quarter ended November 2023, representing a year-over-year increase of 3.4%. EPS of $0.44 for the same period compares to $0.34 a year ago.The reported revenue represents a surprise of -1.18% over the Zacks Consensus Estimate of $1.66 billion. With the consensus EPS estimate being $0.42, the EPS surprise was +4.76%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determin ...

Levi Strauss forecast annual sales and profit below Wall Street expectations on Thursday and said it would cut 10% to 15% of global corporate jobs as the denim maker seeks to rein in costs amid weakness in its wholesale business.Levi attributed the weak forecast to plans to exit its Denizen brand and cut back on off-price sales, as well as weaker foreign currency exchanges. The company also missed fourth-quarter revenue estimates.The fallout of an inventory glut last year and consumers feeling the pinch fr ...

Levi Strauss (LEVI) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 4.76%. A quarter ago, it was expected that this jeans maker would post earnings of $0.27 per share when it actually produced earnings of $0.28, delivering a surprise of 3.70%. Over the last four quarters, the compan ...

Jeans-maker Levi Strauss & Co. LEVI, +0.19% on Thursday said it plans to lay off between 10% and 15% of its global corporate staff in the first half of this year, part of a new multi-year plan to save money and speed its shift to direct-to-consumer sales. The company said that initiative would save $100 million in costs in its ficsal 2024, which ends in November. Still, shares slid 3% after hours, after management forecast full-year adjusted per-share profit of $1.15 to $1.25, below FactSet forecasts for $ ...