Levi Strauss & Co has reported a dip in its second quarter profits citing declining business in Asia and tough economic conditions in Europe.
Both net income and net revenue declined in what Levi’s described as a “challenging global environment”, with net income dropping from $21m (£13.6m) in the same quarter last year to $13m (£8.4m) dollars in the three months to May 27.
Levi’s said that the results reflect the continued impact of higher-priced cotton and the negative effects of currency.
Net revenues decreased 4% on a reported basis and 1% on a constant-currency basis, primarily reflecting a decline in sales in the Asia Pacific and Europe regions.
“It is clear that the economic headwinds are getting stronger. While our business grew in the Americas, primarily driven by our own retail stores, Europe continues to be a challenge, and for the first time in two years our business in Asia declined,” said Chip Bergh, Levi’s president and chief executive officer.
“In the face of these tougher economic conditions, we are rationalizing our business, reducing operating costs and focusing our resources on the opportunities that will have the most impact in growing shareholder value.”