How did Levi Strauss manage expenses to boost Q4 2024 revenue?

Levi Strauss managed expenses effectively to boost Q4 2024 revenue through a combination of cost control measures and strategic initiatives:

1. **Cost Structure Optimization**: The company focused on optimizing its cost structure by carefully managing fixed and variable expenses. According to Harmit Singh, the CFO, the cost structure was approximately 65-70% fixed and the remaining variable. This flexibility allowed Levi Strauss to adjust expenses in response to changing market conditions.
2. **SG&A Leverage**: Levi Strauss aimed to drive additional SG&A leverage to offset higher product costs. This involved improving the management of controllable retail costs, such as optimizing store staffing and scheduling. The company also continued to invest in digital initiatives and enhance the consumer experience, which contributed to the growth of its e-commerce business.
3. **Pricing Strategies**: The company tightened promotions and focused on full-price sales to maintain margins. This strategy was possible due to strong consumer demand and well-managed inventories.
4. **International Business Growth**: Levi Strauss leveraged its strong international business to drive momentum and offset any potential softness in the U.S. market. The company continued to expand its global footprint, including in Asia and Europe, which provided a boost to its revenue.
5. **Operational Efficiency Initiatives**: Levi Strauss implemented productivity initiatives to drive efficiencies across the company. These initiatives were launched in Q1 and were expected to have a lasting impact on cost management and operational effectiveness.
6. **Divestiture of Non-Core Businesses**: The company strategically exited lower-margin businesses such as Denizen and footwear, which helped to streamline its operations and focus on more profitable areas of the business.

In summary, Levi Strauss boosted its Q4 2024 revenue by managing expenses through a combination of cost control measures, strategic pricing, and operational efficiency initiatives, while also growing its international business and divesting non-core assets.