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

Textiles | On 29th Apr 2017

EU rules needed to curb textile worker exploitation: MEPs

European Union (EU) rules are needed to oblige textile and clothing...

Apparel/Garments | On 29th Apr 2017

US retail operating growth to be 1.5-2.5% in 2017: Moody's

The forecast for operating income growth in the US over the next 12...

Textiles | On 29th Apr 2017

Slight drop in Unifi 2017 Q3 sales

The net sales of Unifi Inc., one of the world's leading innovators in ...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Silke Brand-Kirsch
Schlegel und Partner

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Pranav Mishra
Huemn

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X