Reuters Levi Strauss Co forecast annual sales and profit below Wall Street expectations on Thursday, and said it would cut 10 to 15 of global corporate jobs as the denim maker seeks to rein in costs amid weakness in its wholesale business.

Levi attributed the weak forecast to plans to exit its Denizen brand and cut back on offprice sales, as well as weaker foreign currency exchange rates and the final liquidation of its Russia business. The company also missed fourthquarter revenue estimates.

The fallout of an inventory glut last year and consumers feeling the pinch from inflation are a drag on the company39;s wholesale channel and outweighing the gains in its directtoconsumer DTC business.

Levi39;s incoming CEO, Michelle Gass, said the company39;s U.S. wholesale business improved over its last quarter and is expected to show growth in the second half of 2024. However, unpredictable consumer demand meant Levi39;s would continue to be conservative in its outlook, she told investors in a postearnings conference call.

We39;re encouraged, but as it relates to that channel, we39;re not declaring victory yet, Gass said. There39;s been a lot of volatility this past year … so we are taking a cautious approach as we look forward.

Phasing out the Denizen brand, which is more inexpensive than other Levi products and sells at a lower margin, would allow the company to focus more on expanded product categories, including lighterweight denim and athletic wear, according to…