Levi Strauss: turnover up 1% in its third quarter

By

Olivier Guyot

Published
Oct 7, 2014

The Europe region inched ahead for Levi Strauss & Co in the last quarter. For the three-month period that ended on 24 August, the American owner of Levi’s and Dockers has seen its turnover there progress by 4%, to 226 million euros, and its operational result improve by 8%, to 40 million euros, compared to the same period last year. A growth that, according to the Group, is linked to its own development of its network and better margins.

For the Americas zone, the Group saw its sales diminish by 2%, to 552 million euros due to the drop in its wholesales of women's apparel, and by 2% of its operational result, to 97 million euros.

Asia experienced a paradoxal quarter. The Group's sales went up 10% to 171 million euros, led by its retail and wholesale sales, but its profitability buckled under its promotions, with an operating result dropping drastically from 18 to 13 million euro.

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Overall, the Group is showing a turnover of 914 million euros (1.154 billion dollars US), up 1% but an operational result diminished by 11% to 83 million euros.

Its net result has suffered the same fall, dropping from 45 to 40 million euros. The Group emphasises that this step back is particularly due to its international restructuring plan, which it is calling a global productivity initiative.

Its earnings before interest and taxes is down by 2% to 94 million euros, due to a 50.2% to 48.7% drop in its gross margin stemming from rising production costs, to which an increase in sales at reduced prices is added. The Group also invested in communications with the launch of its Live in Levi’s campaign.
 
The Group is present in 110 countries with approximately 2,600 stores and shop-in-shops.