Levi Strauss struggling in Asia

By

Bruno Joly

Published
Apr 10, 2013

2011/2012 was a difficult year for American denim brand in Europe, with sales dipping by 11% on the continent. It seems this year there is new problem region.

For the first three months of this financial year, started December 1, Levi Strauss has seen net sales in Asia Pacific drop by 11% to 203 million dollars (155 million euros). The company has confirmed in a press release that it is not just retail that is suffering and in fact, wholesale activity in Asia has also taken a downturn this for this quarter, particularly in China.

In Europe, net sales have risen by 2% to 297 million dollars while activity in North America remained stable at 647 million dollars.

Net revenues decreased 2 percent on both reported and constant-currency bases, due to lower sales in Asia Pacific and the impact from licensing the Levi’s brand boys business. First quarter net income however increased 117 percent to $107 million, driven by a stronger gross margin and improved operating margin.