By Granth Vanaik and Katherine Masters

April 3 (Reuters) - Levi Strauss raised its

annual profit forecast on Wednesday, citing the apparel maker's

recent cost savings from job cuts and less aggressive discounts

on its jeans and denim clothing.

In a bid to cut costs, Levi's has reduced its global

corporate workforce, including trimming the number of senior

leadership positions. It has also consolidated its operations in

Europe and exited lower-margin businesses, such as its Denizen

brand and European footwear enterprise.

The apparel retailer recorded a restructuring charge of $116

million in the first quarter.

Levi's also reported a loss of $10.6 million, or 3 cents per

share, in the first quarter, compared with a profit of $114.7

million, or 29 cents, a year earlier.

However, Chief Financial Officer Harmit Singh said the jeans

maker is "feeling good" about a more "stable" U.S. consumer in a

call with Reuters on Wednesday.

Sales of Levi's clothing directly to consumers on its

website and at the network of stores owned by the company rose

8% on a constant-currency basis, which follows a 10% increase in

the prior quarter.

However, Levi's sales through its still-important wholesale

channels - which include department stores such as Macy's

and Kohl's and other retailers such as Walmart ( WMT ) -

fell by 19% on a constant-currency basis, a steeper fall

compared with a 3% drop in the fourth quarter.

With shoppers spending less on clothing amid sticky

inflation, many chains that carry Levi's jeans have pared back

their orders in order to keep their inventories lean.

Levi's intends to take similar measures and cut back on its

stock keeping units, according to Singh.

"We're going to be reducing about 15% of our SKUs and really

think about expanding in goods that are actually resonating with

the consumer," Singh said. "What's really resonating these days

is the baggier fit, the low, loose assortment."

Higher full-price sales and lower product costs also led

Levi's gross margins to rise by 240 basis points to 58.2% in the

first quarter, from 55.8% a year earlier.

But the San Francisco-based firm said it continues to expect

full-year revenue to grow in the range of 1% to 3%.

The denim maker said it expects an adjusted profit between

$1.17 and $1.27 per share for 2024, up from its prior

expectations of $1.15 to $1.25. Analysts' expected a profit of

$1.21 per share.

Its net revenue fell about 7.8% to $1.56 billion in the

quarter ended Feb. 25, narrowly beating estimates of $1.55

billion, according to LSEG data.