Levi’s hits revenue slump, doubles net income in full year results
Levi Strauss & Co. announced its financial results for the fourth quarter and full year fiscal 2015 ended November 29, 2015.
The company reported 7% and 5% declines in net revenue for the fourth quarter and full year, respectively. On a constant currency basis, the net revenues for the fourth quarter and full year 2015 decreased 1% and increased 1%, respectively. Gross profit for both periods also decreased with the fourth quarter achieving $658 million compared to $680 million in the previous year and the full year achieving $2,269 million compared to $2,348 million in 2014.
"Fiscal 2015 was a very challenging year with currency headwinds, the associated negative impact on tourism, and challenging retail dynamics globally. Despite these, we grew the top-line on a constant-currency basis, improved our structural economics, and further strengthened the balance sheet through refinancing our debt," said Chip Bergh, president and chief executive officer.
Net income for the fourth quarter and full year grew, which was reflected primarily by lower restructuring charges associated with the company's global productivity initiative, lower interest expense, and a pension settlement loss recorded in the fourth quarter of the prior year.
The company also continued to grow its direct-to-consumer and saw a positive response to its new fall product.
Bergh added, “In 2016 we will continue to invest in our retail network, ecommerce and our brands to support our long-term profitable growth objective."
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