Jeans displayed at a Levi Strauss store in New York on March 19, 2019.
Shannon Stapleton | Reuters
Levi Strauss will lay off at least 10% of its global corporate workforce as part of a restructuring, the clothing retailer said on Thursday, as it expected weaker sales this year.
The job cuts will take place in the first half of the year and could affect up to 15% of corporate employees, Levi's said. The company had more than 19,000 employees in November, but it is unclear how much of the workforce is in corporate offices.
The cuts come amid a wave of layoffs earlier in the year within the retail industry and at a variety of public companies. Macy's and Wayfair announced job cuts this month, as older and newer retailers try to boost sales and increase profits.
The company made the announcement as it reported its fourth-quarter earnings and forecast a weaker-than-expected fiscal year. Here's what Levi's reported compared to what Wall Street expected, according to analyst estimates compiled by LSEG, formerly known as Refinitiv:
- Earnings per share: 44 cents adjusted versus 43 cents expected
- Revenue: $1.64 billion vs. $1.66 billion expected
The company said it expected revenue to rise between 1% and 3% for the full fiscal year, less than the 4.7% forecast by Wall Street. Levi's expects earnings of between $1.15 and $1.25 per share for the year, less than analyst expectations of $1.33 per share.
Net income for the three months ended Nov. 26 was $126.8 million, or 32 cents per share, compared with $150.6 million, or 38 cents per share, a year earlier.
The company's shares fell about 2% in extended trading on Thursday.
Inventories during the quarter decreased 9% compared to the previous year. Wholesale revenues experienced a slight drop of 2%.
In the company's specific segments, Beyond Yoga's revenue increased 14%. The denim retailer sought to gain share in the athleisure market and named former Athleta CEO Nancy Green as the brand's new CEO earlier this month.
The company's other brands segment saw a net income decline of 11%.
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