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

Apparel/Garments | On 26th Sep 2017

US raises annual AGOA quota for textiles

The US Committee for the Implementation of Textile Agreements has...

Textiles | On 26th Sep 2017

Gujarat hopes extended textile policy to attract Rs 5000 cr

The Gujarat government feels that its recent decision to extend its...

Apparel/Garments | On 26th Sep 2017

Cash burn by e-tailers in India may double during festivals

During this year’s festival season, which has already started,...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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