Levi Strauss & Co has produced a second-quarter loss of $81 million, marking the first time the company has lost money in three years.
It blames the cost of closing eight manufacturing plants and offering discounts to merchants.
The loss stems largely from a $150 million charge taken to cover severance pay and other expenses incurred in closure of plants in the US and Scotland.
The second-quarter loss contrasted with a $43.4 million profit at the same time last year.
If not for the special charges, Levi's said it would have earned $15 million in its latest quarter.
San Francisco-based Levi's cut into its revenue during the three months ending May 26th by lowering the wholesale prices that retailers pay for the company's clothes, a decision meant to curry favor by helping merchants improve their profit margins in a sluggish economy.
PA