Profits Continued To Fall And Levi's Continued To Lay Off Staff.

Here world Clothing and shoes Xiaobian network to introduce to you is Levi's continues to lay off 500 people.

Recently, the Levi Strauss & Co. of Levi's denim, the US denim brand, released the second phase of its business restructuring and cost reduction plan, saying it would continue to lay off workers on a large scale.

It is reported that the group has signed a strategic agreement with a global technology service provider, VIP, for a period of 5 years, worth at least $143 million. Outsourcing of IT, finance, human resources, customer service and consumer relations began in the first quarter of 2015, which means that the relevant positions within the group will be abolished, which involve about 500 employees. As profits continue to fall, the group will continue to reduce management levels, eliminate duplication of jobs and change the structure. At the present stage, a restructuring of 45 million ~5500 million dollars and related expenses will be recorded, most of which will be recorded in the fourth quarter of fiscal year 2014. In addition, the group will pay a minimum cost of $143 million for the company, and the final cost will depend on the actual demand of the group.

The whole business restructuring and cost reduction plan has been implemented since March of this year, and is expected to last 12~18 months, aiming at reducing the operating cost of 175 million ~2.00 billion a year. In the first stage of the plan, Levi Strauss & Co. has cut about 800 non retail and non manufacturing jobs, accounting for nearly 20% of the total number of employees, and is expected to save 75 million ~1 billion per year. As of the third quarter of this year, the plan has already cost $103 million, and the cost savings will not be over $100 million to $125 million in the next year, higher than expected.

Levi Strauss & Co. continued to decline in the three quarter, down from 57 million 75 thousand US dollars in the same period last year to 50 million 620 thousand US dollars, or 11.3%. It was dragged down by the weakness of North American business, with a total revenue of US $1 billion 154 million 100 thousand, an increase of 1% over the same period last year of US $1 billion 141 million 300 thousand. Gross profit was US $562 million 200 thousand, a 2% decline, and gross margin fell by 150 basis points, from 50.2% in the same period last year to 48.7%. Due to lower gross margins, the operating profit in the three quarter decreased from 118 million 100 thousand US dollars in the same period last year to 105 million 100 thousand dollars.

Recently, there were reports that the American cowboy market had shrunk by 5%, and Levi's was forced to lay off 800 people.

In the past two years, I don't know if you have such a feeling that people wearing jeans are less and less. If you feel this way, don't doubt that the sales survey data from cowboy manufacturers show that this is a reality. If you don't feel this way, I'm afraid you have to consider whether the people around you are keeping up with the trend.

According to the latest research data from Research Institute NDP Group, the American cowboy market had shrunk by 5% in the end of December, of which 4% of men's wear denim sales, 5% of women's wear, and 10% of children's wear fell by 5%. NDP Group's chief industry analyst, Marshal Cohen, said in a blog blog article that cowboy clothing's downturn is mainly due to the genetic makeup of jeans. Consumers have been paying more attention to their dress in the past two years, so sports and leisure pants are eating away the share of jeans, especially sports. Another reason for the decline in jeans sales is that the industry has been lacking in innovation. For example, Levi s Levi's has been chattering about water washing.

Statistical data on NO Agency (micro-blog @shitoffashion), a research and consultancy firm focusing on luxury goods and apparel retailing industry, also showed that in the past two quarters, the main Volkswagen denim brands including Levi 's Levi's, Lee, Gap cover, Guess and Wrangler were sold and same stores were also the main markets. North American sales and same store sales almost all showed a downward trend, and the data in the past 6 quarters were also similar.

with Jeans For example, in the past three quarters, its profits have been double digits plummeting. In March 2014, Levi 's Levi's's parent company Levi Strauss & Co. was forced to announce its business restructuring and cost reduction plan, resulting in a layoff of 800 people in March 2014. Levi s

Marshal Cohen, chief industry analyst at NDP Group, said that 6% of the data may not look great, but in cowboys. Clothes & Accessories The industry is very rare, "jeans dress is equivalent to bulk commodities". As retailers usually replenish their jeans in stock, such a decline exacerbated inventory and entered a vicious cycle of adjustment. In the interview, the CEO of Telsey Advisory Group said that sports and sportswear must have become a new daily dress regardless of age.