Pants maker Levi Strauss struggled on Wall Street after presenting results before the stock market opened. The stock has never fallen so much in one day.
Case is updated…
At closing time, at 22:00 on Thursday, Levi Strauss shares were down 16 percent on Wall Street.
In the first accounting quarter (the period between December and February), the company’s gross margin was 55.8 percent, down from 59.4 percent in the same period a year earlier. The company is left with less money due to increased transportation costs and several stock-clearing promotions they implemented last year.
– We’ve gotten rid of inventory as much as we can – margins have hurt, Levi Strauss’ Chief Financial Officer Harmeet Singh says during a conference call, according to bloomberg.
The company is currently undergoing a restructuring process, which has cost the company dearly. The company had a net loss of $11.4 million related to job cuts, as well as a loss of $18.2 million related to completed technology projects.
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