At Extreme Investor Network, we strive to bring you the latest and most valuable information in the world of business news. Today, we’re excited to share with you some insights on Levi Strauss & Co., a household name in the world of fashion.
Levi Strauss & Co. recently made headlines with a 12% surge in its stock price after exceeding expectations with its holiday earnings and raising its full-year profit guidance. The retailer’s fiscal first-quarter earnings report revealed that it expects adjusted earnings per share for fiscal 2024 to be between $1.17 and $1.27, up from a previous range of $1.15 to $1.25. Analysts had anticipated a forecast of $1.21 per share, according to LSEG.
So, what’s behind Levi’s success in a challenging retail environment? The company has been focused on cost-cutting measures and efficiency improvements to boost its bottom line. In a move to accelerate profitable growth and save on costs, Levi’s recently launched an initiative that included cutting about 12% of its global workforce and exiting its lower-margin Denizen business. Additionally, they have reduced reliance on aggressive discounting and are seeing record amounts of sales online and in their own stores rather than through department stores like Macy’s and Kohl’s.
Finance chief Harmit Singh emphasized the positive impacts of the Project Fuel initiative, highlighting improvements in business agility and efficiency. The company also aims to maintain positive free cash flow through inventory and working capital management.
One key factor contributing to Levi’s success is its focus on fewer promotions and lower product costs, resulting in a boost to its gross margin by 2.4 percentage points to 58.2%. This reflects a strategic shift towards sustainable growth and profitability in the ever-evolving retail landscape.
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