Jeans are displayed at a Levi Strauss store in Recent York, March 19, 2019.
Shannon Stapleton | Reuters
Levi Strauss will lay off no less than 10% of its global corporate workforce as a part of a restructuring, the apparel retailer said Thursday because it said it expected weaker sales this 12 months.
The job cuts will happen in the primary half of the 12 months, and will affect as much as 15% of corporate employees, Levi’s said. The corporate had greater than 19,000 employees as of November, however it is unclear how much of that workforce is in corporate offices.
The cuts, which the corporate said will result in $110 to $120 million in restructuring charges in the primary quarter, come amid a wave of early 12 months layoffs throughout the retail industry and across a variety of public firms. Macy’s and Wayfair each announced job cuts this month, as each older and newer retailers attempt to kick-start sales and boost profits.
The corporate made the announcement because it reported fiscal fourth-quarter earnings and forecast a weaker-than-expected fiscal 12 months ahead. The associated fee-cutting push comes as Levi’s President Michelle Gass is anticipated to succeed Levi’s CEO Chip Bergh on Monday.
Here’s what Levi’s reported compared with what Wall Street expected, based on analyst estimates compiled by LSEG, formerly generally known as Refinitiv:
- Earnings per share: 44 cents adjusted vs. 43 cents expected
- Revenue: $1.64 billion vs. $1.66 billion expected
The corporate said it expected revenue to rise 1% to three% for the total fiscal 12 months, lower than the 4.7% Wall Street anticipated. Levi’s projects earnings of $1.15 to $1.25 per share for the 12 months, lower than analyst expectations of $1.33 per share.
Net income for the three-month period that ended Nov. 26 was $126.8 million, or 32 cents per share, compared with $150.6 million, or 38 cents per share, a 12 months earlier. Revenue rose 3% to $1.64 billion.
The corporate’s shares rose about 4% in trading Friday.
Inventories through the quarter declined 9% from the prior 12 months. Wholesale revenue saw a slight 2% drop.
In the corporate’s specific segments, Beyond Yoga revenue rose 14%. The denim retailer has looked to realize athleisure market share, and appointed former Athleta CEO Nancy Green as the brand new chief executive of the brand earlier this month.
The corporate’s other brands segment saw net revenue fall 11%.
Individually, Levi’s reportedly renewed its naming rights deal for the San Francisco 49ers stadium for 10 years and $170 million.
Don’t miss these stories from CNBC PRO:
