From Fortune:

Levi Strauss to cut as much as 15% of its workforce in a cost-cutting move. Stock fell 5.9% in extended trading after announcement. New CEO Michelle Gass plans for the company to become a direct-to-consumer retailer with major restructuring and cuts. Fiscal 2024 outlook falls short of Wall Street’s expectations.

Levi Strauss prioritizes direct-to-consumer sales, plans for a new “productivity initiative” to cut costs and simplify operations. Company expects restructuring charges in the first quarter and anticipates a leaner, more agile business model.

Sales in recent holiday months were stronger than expected, with a single-digit rise from the prior year. Direct-to-consumer sales accounted for more than 40% of overall business, rising 11% in the latest quarter. The company expects that division to generate 55% of sales in the next several years.

New CEO Michelle Gass plans to bolster direct-to-consumer sales with new products like denim skirts, dresses, and jackets. Wholesale revenue declined 2% in the fourth quarter. The company plans to shift away from off-price retailers and discontinue the Denizen brand, currently sold at Target Corp.



Read more: Levi Strauss to cut up to 15% of corporate workforce in ‘productivity initiative,’ shares slump