Net incomes at denim brand Levi Strauss & Co more than doubled in its first quarter despite total sales dipping.
For the three months to February 24 net income rose 117% on the same quarter last year to $107m (£69.8m), while net revenues dropped by 2% to $1.1bn (£718m).
Levi’ssaid the increased income was driven by a stronger gross margin and improved operating margin.
Gross margin was helped by a lower cost of cotton and increased sales from retail stores, coupled with a favourable currency impact.
The dip in revenues was due to lower sales in Asia Pacific.
Net revenues in Europe however increased, reflecting continued growth from the company-operated retail network.
Chip Bergh, president and chief executive, said: “We are committed to reducing debt and strengthening the balance sheet. Our cash flow and a successful debt refinancing we executed after the quarter closed have allowed us to pay down $185 million of our debt this year.”