Home / Knowledge / News / Apparel/Garments / Sales dip 7% at Levis Strauss in Q1 FY15
Sales dip 7% at Levis Strauss in Q1 FY15
16
Apr '15
For the first fiscal quarter ended March 1, 2015, denim jeans marketer Levi Strauss & Co. reported a 7 per cent year over decline in net sales due to lower revenues in wholesale and retail in the Americas.

Levis said its net sales slipped 7 percent in the first quarter of fiscal 2015 to $1,055 million as against $1,130 million in the first fiscal quarter ended February 23, 2014.

On a reported basis, gross profit in the first quarter fell to $537 million compared with $576 million for the same quarter of 2014.

Gross margin for the reporting quarter too decreased marginally to 50.9 per cent of revenues from 51.0 per cent of revenues in the prior year first quarter.

“Excluding $35 million in unfavourable currency translation effects, gross margin improved 30 basis points, primarily due to lower negotiated product costs and a streamlined supply chain,” it added.

SG&A expenses for the first quarter of fiscal 2015 at $425 million were flat compared with the same quarter of fiscal 2014, as currency favourably impacted SG&A by $22 million.

Excluding currency, earlier timing of advertising investment and higher costs were partially offset by savings realised from the company's global productivity initiative.

Adjusted EBIT, which excludes the charges associated with the company’s global productivity initiative, was $120 million, down from $159 million in the same quarter of 2014.

Operating income of $107 million quarter under review was however up from $94 million in the same quarter of 2014 primarily from lower restructuring charges associated with global productivity initiative.

At March 1, 2015, cash and cash equivalents of $203 million were complemented by $717 million available under the revolving credit facility, resulting in a total liquidity position of around $920 million.

Net debt at the end of the first quarter remained at $0.9 billion, while free cash flow through the first quarter of 2015 was $12 million.

“As anticipated, unfavourable currency effects significantly impacted our revenues and adjusted EBIT in the first quarter,” said Chip Bergh, president and chief executive officer.

“The health of our business remains strong and the savings generated from our improving structural economics helped to fuel our D-to-C growth initiatives and investments to generate consumer demand,” he added.

“While the second quarter will again be a difficult comparison to the prior year, we remain confident in our ability to grow full-year sales and adjusted EBIT on a currency-neutral basis,” he noted. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Rick Helfenbein (left), president and CEO of AAFA, with Juan Estrada, chief of party, Hub; Courtesy: Hub

Apparel/Garments | On 23rd Feb 2017

AAFA inks agreement for best manufacturing in East Africa

The American Apparel & Footwear Association (AAFA) has entered into a ...

Mango vice-chairman and member of the board of directors Daniel Lopez (L) with Ananth Narayanan, CEO, Myntra & Jabong. Courtesy: Myntra

Apparel/Garments | On 23rd Feb 2017

Mango awards distribution & management rights to Myntra

Mango, the Spanish fast fashion brand, has awarded its master...

Courtesy: IUCN

Apparel/Garments | On 23rd Feb 2017

Synthetic clothes should shed fewer fibres: IUCN report

Synthetic clothes should be designed in a manner that it will shed...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search