US: Levi Strauss Q4 profit up 20% despite revenue drop
- Q4 profit up 20% to $53m
- Sales slipped 3% to $1.30bn
- Gross margin improved to 50%
Jeans giant Levi Strauss & Co has seen its fourth-quarter and full-year net profit rise after a tax benefit and lower cotton prices helped offset a fall in sales.
The San Francisco-based fim said net income jumped 20% to US$53m for the three months to 25 November, compared to $44m in the same period a year earlier. Growth was boosted by a $27m tax benefit.
Revenues, however, edged down 3% to $1.30bn from $1.34bn the year before. Gross margin improved to 50% from 46% on the back of increased sales from retail stores, a decline in sales to lower-margin channels, and lower cotton costs.
For the fourth quarter and full year, rising sales from company-operated retail stores in the Americas and Europe were offset by slowing economic conditions in Asia, as well as the decision to phase out its Denizen brand.
"In 2012, we made some tough choices and executed significant changes to set the company on a path towards driving sustainable profitable growth," said president and chief executive officer Chip Bergh.
"We have a largely new leadership team, sharper strategies and a new organisation model designed to win in the marketplace. We're focused on driving our profitable core businesses, expanding beyond the core to develop a more balanced portfolio, becoming a best-in-class retailer and making our cost structure more competitive."
Full-year net income rose 4% to $144m, up from $138m last year, while revenues fell to $4.61bn against $4.76bn in 2011.
Environmental concerns focus on a range of pollutants in that water, from pesticides on cotton fields to dust storms caused by overgrazing in Inner Mongolia by cashmere goats....
Apparel group Levi Strauss & Co has announced a series of appointments, including the creation of regional presidents for the Americas, Europe and Asia Pacific, as part of efforts to drive long-term g...
Apparel business Levi Strauss posted a notable surge in second quarter net profit, thanks to good growth for its Dockers and Levi's brands in the Americas....
Turkey-based denim manufacturer Isko has invested in "predictive simulation technology" to help improve the uptime and productivity of its weaving machines....
UK department store retailer John Lewis has appointed Paula Nickolds as its new buying and brand director, succeeding Peter Ruis, who has been named CEO of clothing chain Jigsaw....
Children's apparel retailer The Gymboree Corporation has appointed Levi Strauss & Co executive Joelle Maher as the company's new chief operating officer....
- Why fast fashion isn't a case of one size fits all
- Sir Philip Green blamed for the collapse of BHS
- Brexit blow to global apparel industry confidence
- TPP tariff phase-out guides Vietnam sourcing plans
- Brexit Trade Focus – How a CANZ-UK FTA stacks up
- VF Corp cuts guidance as Q2 profit plunges 70%
- Vietnam mulls wage freeze to boost competitiveness
- Ethiopia opens flagship textile and apparel park
- Teijin launches polyester hook-and-loop fastener
- US Q2 in brief - Carter's, Wolverine Worldwide
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Southeast Asia & Central America strategic sourcing reviews package deal
- World Textile and Apparel Trade and Production Trends: the EU - June 2016
- Primark Stores Limited: Retailing - Company Profile & SWOT Analysis