On January 25th local time, Levi Strauss&, the parent company of jeans brand Levi's; Co. announces its financial performance for the fourth quarter and fiscal year ended November 26, 2023. The data shows that the company's net revenue in the fourth quarter was 1.64 billion US dollars, a year-on-year increase of 3%, and analysts expected it to be 1.66 billion US dollars; The adjusted pre tax profit for the fourth quarter was $200 million, a year-on-year increase of 41%, and analysts expected it to be $200 million. It is expected that net revenue will increase by 1% -3% in 2024.
The company also stated that the board of directors has approved a multi-year global productivity initiative, Project Fuel, which is expected to last for two years, with a focus on optimizing operational models and structures to reduce costs and streamline processes. It is expected that in the fiscal year 2024, the plan will save a net cost of $100 million. The first phase of the plan is expected to be implemented in the first half of 2024, with an estimated layoff of 10% -15%. Therefore, the company expects to incur restructuring expenses of $110 million to $120 million in the first quarter. As the company further advances this plan, it may incur additional restructuring costs.