Blog: Leonie BarrieLevi's future looks frayed

Leonie Barrie | 3 March 2004

The latest signs of the unravelling of Levi Strauss & Co emerged earlier this week when the jeans maker revealed a 2003 loss of $349 million - the largest annual setback during its seven-year sales slide. CEO Phil Marineau has also conceded that more layoffs may be announced in the next couple of months – on top of last year's 2000 job losses when the company shuttered its last remaining US plants.

More unwelcome news could also be around the corner when management consulting firm Alvarez & Wilson completes the first phase of its corporate review. Appointed at the end of last year, the consultants have been asked to advise on “additional strategies and actions to reduce debt and costs, while building our brands and returning the company to profitable growth,” according to Marineau. 

Management missteps, tough US and European retail markets, and unrelenting price deflation have all contributed to its woes. The company also denies that selling a mix of styles and prices through different retail outlets has led to cannibalisation of the mainstream line, with its discount Signature brand, sold at Wal-Mart and Target, emerging as one of the few bright spots in the past year. Even so, the 151-year-old Levi Strauss has a lot of work to do if its promises of better times ahead are to ring true.


BLOG

Likely shifts in the sourcing landscape in 2017

Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...

BLOG

Trump trade policies and China tensions top concerns

This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...

BLOG

Happy New Year – and a first look at 2017

Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....

BLOG

New re:source to help unravel sourcing decisions

Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...

just-style homepage



Forgot your password?