• Q1 net income up 17% to US$56m
  • Revenues up 9% to $1.04bn
  • Acquisitions help boost revenues

Apparel company Levi Strauss & Co posted a 17% increase in first quarter profit to US$56m, boosted by the impact of currency gains.

Revenues for the three months to 28 February rose 9%, or 4% excluding currency effects, to $1.04bn, despite declines in the wholesale segment in certain markets.

US revenues were up 8% to $545m, European revenues surged 15% to $306m and Asia Pacific sales increased 2% to $184m, Levi’s said.

The US rise mainly came from Levi’s and Dockers outlet stores acquired in 2009, as well as Levi’s wholesale performance, but was offset by lower sales for Signature and US Dockers.

In Europe, currency benefits were a significant factor behind the revenue hike, along with the company’s acquisition of the footwear and accessory business last year. However, wholesale revenues were down.

Finally, growth in developing markets across Asia Pacific was more than offset by softer figures from several mature markets, with revenues at constant currency rates down 5%.

“We’re off to a good start for 2010, with revenue growth and our Levi’s brand performing well around the world,” said John Anderson, company president and CEO.

“Our strategies are beginning to fuel top-line growth, with the acquisitions we made last year contributing to our overall revenue gains.”

Meanwhile, Levi Strauss Japan has announced a loss of JPY319m (US$3.4m), on sales of JPY2.9bn, for the quarter ended 31 March.