Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Levi's blames IPO for slow second half

US denim brand Levi Strauss has reported a 63% year-on-year drop in net profit to $29m (£23.2m) for the three months to 26 May.

It said the drop was primarily a result of $29m (£23m) of costs associated with the company’s initial public offering (IPO), which it announced in February.

Net revenues meanwhile grew 5% year on year to $1.3bn (£1bn) in the second quarter. Europe accounted for $398m (£318m) – up 9% compared with the same period last year – the US for $693m (£554m) and Asia for $222m (£177m).

In the first half (six months to 26 May), group operating profit rose by 5% year on year to $264m (£211m).

Selling, general and administrative expenses rose to $1.2bn (£975m) however, which Levi’s said “reflects the growth and expansion of [its] direct-to-consumer business.”

President and CEO Chip Bergh added: “In our second quarter and first half, we delivered broad-based growth across all brands, regions and key product categories despite a challenging retail and macroeconomic environment.

“For both periods, the Levi’s brand grew in all three regions across men’s, women’s, tops and bottoms.”

Levi’s said it expects full-year net revenue growth to be at the high end of the mid-single-digit range, warning that it will miss out on the “benefit” of Black Friday because of the timing of its financial year.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.