2024-01-26 21:44:27
The clothing company Levi Strauss (Levi’s) reported net profits of U$249.6 million during its 2023 fiscal year, which ended on November 26, which represents a 56.1% decrease with respect to the figures recorded in the previous year.
The net billing reached U$6,179 million, 0.2% more. Specifically, Levi’s recorded a 3.2% drop in sales in America, to US$3,087 million, and a 1.1% drop in Europe, to US$1,580 million.
In the case of Asia, the company’s revenue grew 11.3% year-on-year, to US$1,060 million. The amount received by other brands in the group, such as Dockers o Beyond Yogaadvanced 4.9%, to US$452.9 million.
Levi’s announces massive global cuts following impact on profits
After this, the company has announced a “Global Productivity Initiative” multi-year plan to accelerate brand strategy, simplify business structure and optimize costs. These measures, which are estimated to extend for two yearswill generate a net savings of US$100 million in 2024.
The first phase is expected to be executed in the First half 2024 and includes a reduction of between 10% and 15% of the global corporate workforce.
Levis pants
As a result, the company expects to record estimated restructuring expenses of between US$110 and US$120 million in the first quarter. Additional costs may also be incurred as the plan is developed.
More figures
Expenses for products sold amounted to U$2,663 million, 1.6% more, while selling, general and administrative costs appreciated by 6.3% and stood at U$3,072 million. Thus, the sum, plus depreciations, was U$5,825 million, 5.5% more.
Already in the fourth quarter, the textile firm obtained a net profit of U$126.8 million, 15.8% less, although its sales rose 3.3%, to U$1,642 million.
“Although 2023 was a difficult year, we finished on a strong note and I am optimistic regarding the future. “I might not have more confidence in Michelle (Gass, incoming CEO) as my successor, who together with the rest of our team, positions the company to thrive in its next phase of growth,” said the president and CEO the Levi Strauss, Chip Bergh.
Provisional dividend and projections
The company has declared a dividend of U$0.12 per sharepayable in cash on February 23 to all holders of A and B common securities at the close of February 7.
Looking ahead to 2024, the multinational expects a income improvement of between 1% and 3%, which includes a negative impact of 2% attributable to the departure of Levi Strauss from Denizen, lower sales amounts and exchange rate effects. These circumstances will be partially offset by having 53 weeks in the new fiscal year.
Afterwards, adjusted earnings per share will be in the range of $1.15 to $1.25.
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