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

Retail expansion bolsters Levi's European sales

Levi Strauss has reported net revenues in Europe grew 4% to $275m (£171m) in the last quarter. Operating income for the three-month period to August 24, 2014 increased 8% to $50m (£31m) compared with the same period last year, which the business attributed to the performance and expansion of its retail network and higher gross margins.

Net revenues fell 2% to $697m (£434m) in the Americas and operating profit declined 2% to $122m (£75m), due to lower womenswear wholesale revenues. In Asia, net revenues increased 10% to $171m (£106m) but operating income fell 23% to $17m (£10m), reflecting the highly promotional environment.

“Despite continued external challenges, including soft retail traffic and a highly promotional environment, we grew revenue in the third quarter by focusing on the controllable aspects of the business,” said Chip Bergh, president and chief executive officer. “The decline in net income essentially reflects the investments we’re making to improve productivity. As we enter the fourth quarter, we remain confident in our ability to grow sales and adjusted EBIT this year, as we continue to focus on driving retail conversion, engaging with consumers globally with our Live in Levi’s campaign, and improving the structural economics of our business.”

Overall net revenues increased 1% to $1.15bn (£716m) but third quarter net income declined 11% to $51m, which the company said was due to charges associated with its ‘productivity initiative’, which includes expenses associated with staffing reductions and consulting fees relating to cost saving and procurement projects.

Levi’s said it expects additional savings in future periods to come from streamlining its product development, planning and go-to-market strategies, as well as implementing efficiencies across its supply chain and distribution network, and adopting lower-cost service delivery models.

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.