Levi’s in crisis fires en masse: uncomfortable jeans in the lockdown

0
7


July 11, 2020

The economic crisis caused by Covid-19 is making the first victims even among fashion multinationals. In response to the slump in sales during the coronavirus epidemic the Levi’s, a well-known international clothing brand, has decided to lay off 700 people 15% of its total workforce. The CEO of the Chip Bergh company justified the downsizing with the effects of the closure of the shops during the pandemic which resulted in a -62% of the net turnover and a net loss of 364 million dollarsi.

“We started the year with strong momentum, but the global pandemic and the economic crisis had a significantly negative impact on our second quarter results, as our stores and most wholesalers remained closed worldwide most of the time, “Bergh said in a press release.

The case of jeans brands

If on one hand the collapse of the turnover of the companies of the fashion industry it is an inevitable consequence, it seems that the crisis has particularly affected the signatures of the denim for a peculiar reason: sales in the US would, in fact, have zeroed because US citizens forced home by the lockdown would have preferred more clothing comfortable and sporty, like overalls, to denim trousers.

The same difficulties have also been experienced by another company that produces denim garments. A few days before Levi’s cuts, Lucky Brand also announced the closure of 13 of its 200 stores, after having asked to access the protections of the Chapter 11, the US bankruptcy law.

How the pandemic changes fashion

The characteristics of this global crisis and the changes that will come from the point of view of socio-economic behavior and purchasing habits will lead to consequences in the sales strategies of the big names in the fashion sector. I know it well international brandwho are already struggling with new problems: “The pandemic is accelerating changes in the competitive environment in the retail sector and consumer behavior in various ways that amplify the strengths of the Levi’s brand” explained the CEO of Levi’s Chip Bergh. “And we are stepping up efforts related to our digital transformation, incorporating the power of IA and data science and using our emblematic brands to focus even more on Generation Z and sustainability. We are convinced that this will allow us to further expand our leadership position on the market and to emerge strengthened from this crisis “.



Source link
https://quifinanza.it/lavoro/levis-crisi-jeans-scomodi-lockdown/399659/

LEAVE A REPLY

Please enter your comment!
Please enter your name here