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    High Pressure On Cotton Prices Leads To Levi 'S Cost Cutting Pformation

    2012/4/19 9:47:00 8

    Cotton Price IncreaseLevi 'SBlakejorgensen


    Chip Bergh


    stay

    Cotton price

    Under high pressure, cost cuts back to Levi 's again.

    Chief executive officer

    Blake Jorgensen

    Under the pressure of high cost cotton, for long-term profitability of the company's position,

    Levi 's

    In the next few quarters, the cost pformation of brands will be accepted.


    In order to balance the concept of growth, Levi 's is determined to reduce its internal structural cost within its original control, and to make use of the opportunity to get more efficient work structure and more productivity.

    The key is the improvement of profits in the first quarter.

    From last year's international market, Levi 's gained a huge net profit in the first three months of February 26th, compared with 40 million 700 thousand dollars a year ago, and its total revenue has risen by 4%.

    However, the cost of goods sold increased by 9.5% over last year.

    The total profit is due to excessive cotton costs.

    decline

    1.6%.


    The largest clothing company in the United States, once trapped under 5 billion dollars in sales, has gone through a period of growth through acquisitions and self storage.

    The profit reached $464 million 900 thousand, and sales in 1996 were less than 1/3 last year. Levi 's carried out a series of internal restructuring, and announced a three year restructuring in 2004.

    It can be seen that Levi 's's revenue of $4 billion 670 million in 2011 has raised the alarm for the brand once again.

    As early as Blake Jorgensen took charge of Levi 's in September last year, a substantial reorganization was expected.

    The promotion of cotton prices has become an opportunity.

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