We often talk about clothing brands expanding into accessories. But the shoe business is not for everyone. So much so, that Levi’s is abandoning shoes because the category in the group economy remains too small and probably not profitable. A setback that, however, does not mean the complete abandonment of footwear. Levi’s will continue its footwear collaborations, such as the most recent ones with Crocs and New Balance. The US company, famous for denim, carried out its footwear business in Europe: the company Levi’s Footwear & Accessories Italy is based in Milan, and had a turnover of EUR 39 million in 2022 with 46 employees.
Levi’s abandons shoes
Levi’s wants to cut costs and concentrate on its core business. In the strategic plan called “Project Fuel” there are already savings generated by staff cuts and less aggressive discounts on jeans and denim clothing. On 3 April, in the conference call with analysts on the financial results for the quarter, CEO Michelle Gass announced the closure of the shoe business. “After a strategic review of our categories, we have made the decision to close our small Levi’s footwear business. This, along with the decision to exit the brand Denizen in the final quarter, will help our plans to unlock the true potential of the Levi’s brand globally”.
What it did
According to Footwear News, the footwear business is based in Europe and has never reached significant size. “It’s a small business, it’s declining, it’s not our core competency”, Gass said in an interview. However, the CEO made it clear that the brand will continue to do collaborations, some of which have proven successful and sometimes sold out in a very short time. Levi’s Footwear & Accessories Italy Spa has been based in Milan since the end of 1988, and in 2022 had a turnover of EUR 39 million with 46 employees.
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