Denim giant Levi’s announced a net loss for the quarter of $364 million, which included restructuring charges, inventory costs and other charges related to the COVID-19 economic freeze. Its net revenues declined 62 percent to $498 million compared to $1.3 billion in the same quarter the previous year.
Because of the economic freeze, the denim giant would lay off 700 people, or about 15 percent of nonretail and nonmanufacturing workforces, said Chip Bergh, president and chief executive officer. But, according to Bergh, an annualized savings of $100 million is expected from the downsizing move.
Like many colleagues, Macy’s has been dealing with store closures caused by the COVID-19 pandemic. Macy’s closed all of its 775 stores in March and started reopening them in late May. As a part of a restructuring plan to deal with the COVID-19 economic slowdown, the retailer plans to eliminate 3,900 jobs in its corporate and management sectors. These expected job cuts and its restructuring would contribute to savings of $365 million this year.
The jobs-cuts are a result of the retailer’s performance during the first fiscal quarter of the year, which ended May 2. Its net sales were $3.017 billion, down more than 45 percent compared to $5.5 billion in the first fiscal quarter of 2019. The company reported an earnings per share loss of $11.53. Macy’s withdrew its 2020 sales and earnings guidance and declined to provide an updated outlook. However, Macy’s Inc.’s digital business showed resilience and the retailer expects this to continue at a healthy double-digit growth rate through the back half of the year.