US: Levi Strauss Q1 earnings more than double
- Net income reached US$107m from $49m
- Net revenue fell 2% to $1.1bn
- Asia Pacific revenue fell 11% to $203m
Levi Strauss & Co saw first quarter net earnings more than double as the jeans brand said margin improvement offset a slight decline in sales.
Net income increased to US$107m over the quarter ended 24 February, from $49m in the same period of the prior year.
Net revenue fell 2% to $1.1bn, which it attributed to lower sales in Asia Pacific and the impact from licensing the Levi's brand boys business.
"In the first quarter, we generated strong cash flow and posted a higher gross margin and net income, despite slightly lower revenues," said Chip Bergh, president and chief executive officer.
"We're 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."
Gross margin rose to 52% from 47% a year earlier, which reflected the lower cost of cotton, increased sales from the company's retail stores and a favourable currency impact.
In the Americas, revenue was flat at $647m, but operating income increased 66% to $132m. In Europe, revenue rose 2% to $297m, with operating income increasing 21% to $63m. However, revenue in the Asia Pacific region fell 11% to $203m as operating income increased 19% to $49m.
The company said its performance in Asia Pacific was due to lower sales at both company-operated and wholesale channels, due to challenging conditions in most markets in the region, most notably China.
Global market review of denim and jeanswear – forecasts to 2018
The global jeanswear market is expected to grow in value over the next six years and mass market retailers will continue to source their denim from the most cost-effective manufacturers around the wor...read more
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
The Chinese textile industry has long been blamed for over-consuming resources and water pollution. And with consumers increasingly keen to take production processes into account when making purchases...
Levis Strauss France faces a difficult time in its development in France, as in addition to growing production costs, there is Increasing competition from retailers positioned in the economy segment, ...
Menswear in Mexico industry profile provides top-line qualitative and quantitative summary information including: market size (value 2008-12, and forecast to 2017). The profile also contains descripti...
Spanish garment research and development firm Jeanologia is teaming up with Indian textile manufacturer Arvind Mills to set up a demo centre for its laser and ozone technologies in Bangladesh....
Womenswear in Mexico industry profile provides top-line qualitative and quantitative summary information including: market size (value 2008-12, and forecast to 2017). The profile also contains descrip...
- Garment firms set sights on Vietnam amid TPP talks
- Garment manufacturers eye Myanmar outsourcing
- PSF 2014: No one size fits all in apparel sourcing
- PSF 2014: Shifting focus from cost to consumer
- Tesco takes second stab at US market with F&F
- Wage strike by Cambodia garment workers falls flat
- H&M still committed to higher wages and Bangladesh
- Vietnam Q1 textile and garment exports surge 21.9%
- Alliance inspections more than 50% complete
- Gap to grow China sales to $1bn in three years
- Ethiopia – the emerging textile and clothing industry
- Trade and trade policy: clothing imports, consumer expenditure and trends in five emerging markets: Brazil, Colombia, India, Kazakhstan and Peru, 4th quarter 2013
- Antimicrobial fibres, fabrics and apparel: innovative weapons against infection
- Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects
- Jeans in Italy