Jeans-maker to cut jobs and shift focus to direct-to-consumer sales

  • Levi Strauss plans to lay off 10% to 15% of its corporate workforce
  • The layoffs are part of a new plan to save money and shift to direct-to-consumer sales
  • The company expects to save $100 million in costs by fiscal 2024
  • Levi’s stock slid 3% after hours due to a lower profit forecast
  • Full-year adjusted per-share profit is expected to be $1.15 to $1.25

Jeans-maker Levi Strauss & Co. plans to lay off between 10% and 15% of its global corporate staff as part of a new multi-year plan to save money and accelerate its transition to direct-to-consumer sales. The company expects these measures to result in $100 million in cost savings by fiscal 2024. However, Levi’s stock declined by 3% after hours following a lower-than-expected profit forecast. The company anticipates full-year adjusted per-share profit to be between $1.15 and $1.25, falling short of FactSet forecasts for $1.33. Despite this, Levi’s reported a 3% increase in sales for the fourth quarter, reaching $1.6 billion.

Public Companies: Levi Strauss & Co. (LEVI)
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Factuality Level: 8
Justification: The article provides specific information about Levi Strauss & Co.’s plans to lay off staff and save money. It also includes financial data such as sales and earnings per share. However, there is no indication of irrelevant or misleading information, sensationalism, redundancy, or opinion masquerading as fact. The article appears to be based on factual information and does not contain any obvious bias or logical errors.

Noise Level: 6
Justification: The article provides information about Levi Strauss & Co.’s plans to lay off staff and save money. It also includes details about the company’s financial performance and forecasts. However, the article lacks in-depth analysis, evidence, or actionable insights. It mainly focuses on financial figures and does not explore the consequences of the layoffs or the implications for the company’s long-term strategy.

Financial Relevance: Yes
Financial Markets Impacted: Levi Strauss & Co. (LEVI)

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the plans of Levi Strauss & Co. to lay off a portion of its global corporate staff and its shift to direct-to-consumer sales. However, there is no mention of any extreme event or its impact.

Reported publicly: www.marketwatch.com