Clothing giant Levi Strauss & Co has posted a 98% decline in second quarter income to US$1m, blaming difficult economic conditions both in the Americas and further afield.

The jeans firm saw total quarterly revenue fall 8% to $936m, with sales in the Americas region down 20% to $477m on a constant currency basis, Europe down 4% to $268m and Asia Pacific nearly flat at $191m.

The company said that revenue declines in the Americas were largely due to the impact of the difficult US economic environment, shipping issues related to the transition of the US business to a new ERP system, lower performance in the US Dockers business and the move of some shipments to the first quarter.

"We expected the second quarter to be tough, and it was," said John Anderson, president and chief executive officer.

"The retail environment in the US remained challenging. In addition, our transition to a new enterprise resource planning system in the US negatively affected our results.

"Increasingly difficult economic conditions in many markets worldwide are impacting consumer spending, but our brands remain strong.

"We are pleased with the continued strong growth of our emerging markets and our retail network around the world."

Notably, the company's selling, general and administrative expenses for the second quarter increased to $385m from $345m in the same period of 2007, affected by currency fluctuations, "substantial costs" related to ERP implementation and the company's global retail expansion compared to the prior year.

"Given the slowing macroeconomic indicators we are seeing globally and our continued investment to stabilise our ERP system, we expect the rest of the year to be challenging.

"Nonetheless, we are taking decisive actions to position the company well for when market conditions improve," added Anderson.