Jeans are on display at a Levi Strauss store in New York, 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, while saying it expected weaker sales this year.
The job cuts will occur in the first half of the year and could affect up to 15% of company employees, Levi's said. The company had more than 19,000 employees as of November, but it is unclear how many of those staff are in corporate offices.
The cuts come amid a wave of layoffs at the start of the year across the retail sector and a range of listed companies. Macy's and Wayfair both announced job cuts this month as both older and newer retailers try to boost sales and increase profits.
The company made the announcement as it reported 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:
- Profit per share: 44 cents adjusted versus 43 cents expected
- Gain: $1.64 billion versus $1.66 billion expected
The company said it expected full-year revenue to rise 1% to 3%, lower than the 4.7% Wall Street had expected. Levi's expects earnings of $1.15 to $1.25 per share for the year, lower than analysts' expectations of $1.33 per share.
Net income for the three-month period 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 Thursday.
Inventories fell 9% during the quarter compared to the previous year. Wholesale turnover experienced a slight decline of 2%.
In the company's specific segments, Beyond Yoga's revenue increased 14%. The denim retailer has been trying to gain market share in the athleisure sector, appointing former Athleta CEO Nancy Green as the brand's new CEO earlier this month.
In the company's other brands segment, net sales fell 11%.
This is the latest news. Check back later for updates.