Net income at denim brand Levi’s sank by 50% to $48 million (£32m) in the first quarter ended March 1.
Levi Strauss & Co said group sales had dropped back 12% to $951m (£637.3m) over the quarter. This included a 19% fall in European sales to $267m (£178.9m), as the bankruptcy of two major customers, currency fluctuations and the global economic downturn hit the business.
“We finished the quarter where we expected to be given the difficult operating environment.”
Levi Strauss & Co president and chief executive John Anderson
At the European operation, negative currency exchange accounted for about $45m (£30m) of the sales decline. Excluding the impact of currency, revenues would have fallen 5.6%.
Levis Strauss & Co president and chief executive John Anderson said: “Our Levi’s brand continues to perform relatively well in a tough retail climate. Although our Dockers performance was disappointing, we finished the quarter where we expected to be given the difficult operating environment.”