The company Levi Strauss is considering selling its struggling Dockers brand in order to concentrate on its core denim items. The business made this decision after its quarterly revenue targets were not met.

Levi has already put cost-cutting measures into place, such as staff cutbacks and consolidations. Sales of Dockers fell 15% in the third quarter, making up 5% of Levi's $1.52 billion in revenue.

Levi Strauss, which is best known for its khaki and chinos, announced on Wednesday that it was thinking about selling the failing Dockers brand. The denim manufacturer's shares fell by over 8% during extended trading after it revealed a strategic assessment of Dockers and failed quarterly revenue targets.

Levi's is now implementing a plan to operate with a more limited range, concentrating on its core denim brand while developing clothing and accessories that are in line with consumer preferences. In order to increase revenues and get rid of companies that haven't done well, like the Denizen label and its footwear segment in some areas, the corporation has already mapped out cost-cutting strategies. As part of the cost-cutting measures, it had also consolidated operations throughout Europe and decreased its corporate headcount.

According to LSEG's compilation of analyst forecasts, this assisted the business in achieving a third-quarter normalized profit of 33 cents per share, above expectations of 31 cents per share. The company has appointed Bank of America for its financial consultant as a component of the strategic assessment process, but it hasn't established a firm date or timeline for completion.

Levi has reported that sales of its garments, particularly in the Dockers brand, have suffered as a result of consumers in Europe being extremely cautious and the higher-end consumer in the United States showing little symptoms of pressure.

The third quarter showed a 15% drop in Dockers sales. The brand's share of the reported quarter's $1.52 billion in revenue was around 5%, which was less than analysts' projections of $1.55 billion.