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Levi Strauss to cut jobs after projecting bleak 2024 on fragile wholesale business, ETHRWorld


hr.economictimes.indiatimes.com | www.ETHRWorld.com

<p>The fallout of an inventory glut last year and consumers feeling the pinch from inflation are a drag on the company's wholesale channel and outweighing the gains in its direct-to-consumer (DTC) business</p>
The fallout of an inventory glut last year and consumers feeling the pinch from inflation are a drag on the company’s wholesale channel and outweighing the gains in its direct-to-consumer (DTC) business

By Deborah Mary Sophia and Katherine Masters

Levi Strauss & Co 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 exchange rates and the final liquidation of its Russia business. The company also missed fourth-quarter revenue estimates.

The fallout of an inventory glut last year and consumers feeling the pinch from inflation are a drag on the company’s wholesale channel and outweighing the gains in its direct-to-consumer (DTC) business.

Levi’s incoming CEO, Michelle Gass, said the company’s U.S. wholesale business improved over its last quarter and is expected to show growth in the second half of 2024. However, unpredictable consumer demand meant Levi’s would continue to be conservative in its outlook, she told investors in a post-earnings conference call.

“We’re encouraged, but as it relates to that channel, we’re not declaring victory yet,” Gass said. “There’s been a lot of volatility this past year … so we are taking a…


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