Levi Strauss & Co increases it profitability in its third quarter

By

Olivier Guyot

Published
Oct 14, 2015

In one year, the Levi Strauss group increased its operating margin from 9% to 10%. At least that is what the numbers show for its third quarter closed at the end of August compared to same period last year.

The American group, which owns Dockers and Levi’s, saw its revenue drop 1% (after applying exchange rates) to $1,142 billion but its operating profit increased more than 9% to nearly $115 million. Its net income even jumped 15% to more than $58 million. Indeed, the group benefitted from a marked drop in its product costs (-3.9%), while its structure costs remained stable.

Per region, Levi Strauss saw its sales in the Americas increase by more than 2%, or +5% at a constant exchange rate, to $713 million.

For Europe, the group recorded a nearly 10% drop in its sales to $258 million, but at a constant exchange rate the region increased by more than 11%. The group explains this progression by the performance and expansion of its network in Great Britain and Russia.

Finally, Asia remained stable at $170 million but its activity analysed at a constant exchange rate progressed by more than 9%, in particular due to the development of its retail and an increase in promotional sales.

The three regions recorded an increase in their operating result. The Americas
increased 18% to more than $144 million, Europe by just under 2% to more than $50 million, and Asia by 48% to nearly $26 million.