• Q3 profit grows 17.4% to $58.5m 
  • Sales dip 1% to $1.14bn 
  • Price increases help gross margin to rise 
Levi Strauss & Co is "confident" for its full-year performance

Levi Strauss & Co is "confident" for its full-year performance

Denim giant Levi Strauss & Co has said it is “confident” it can grow full-year sales and currency-neutral adjusted EBIT, after booking a solid increase in third-quarter net income, helped by improved margins. 

The US company said net profit reached US$58.5m for the three months to 30 August, compared to $49.8m in the same period of last year, reflecting higher operating income and lower interest expense.

Gross margin rose to 50.2% from 48.7%, thanks to lower negotiated product costs, streamlined supply chain operations, and price increases. 

Revenues, however, edged down 1% to $1.14bn from $1.15bn a year ago. Europe was the worst performer, with revenues declining 10% to $258m, while Asia was flat at $170m, and the Americas grew 2% to $713m.

The group said it will incur additional restructuring charges related to its global productivity initiative, which is focused on streamlining operations, and now expects the majority of actions to be implemented by the end of next year. 

“In the third quarter, we were encouraged by the initial response to our new product introductions, as well as the continued strength of our international retail business,” said president and CEO Chip Bergh. “Although we expect traffic at retail to remain challenging in the fourth quarter, we are confident in our ability to grow full-year sales and adjusted EBIT on a currency-neutral basis.”