Levi's profits drop 98% as new SAP system disrupts shipments and internal controls

Iconic US jeans manufacturer Levi Strauss blamed a 98% drop in its second quarter profits to $701,000 on problems caused by its new SAP enterprise software system.


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John Stokdyk's picture

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John Stokdyk | | Permalink

Dennis Howlett published an item about Levi's around the same time I posted this one. He did a very interesting segmental analysis to conclde that Levi's had probably overcooked the impact of the ERP implementation on its overall Q2 performance.

There's also a couple of good comments from Francine McKenna's blog. She thinks the public comments about the ERP implementation (and the reasons for the "stabilisation") were a result of new auditor PwC, "bringing the hammer down" on control weaknesses within the new system.

John Stokdyk
Technology editor