Levi Strauss Q1 FY20 revenue grows 5% to $1,506 million

07 May '20

2 min read

Pic: Levi Strauss & Co.

Levi Strauss & Co, a leader in Jeanswear, posted 5 per cent revenue increase to $1,506 million in first quarter (Q1) FY20 ended on February 23, 2020 compared to sales of $1,435 million in same period prior year. Net income grew 4 per cent to $153 million (Q1 FY19: $147 million). Gross profit rose 7 per cent to $839 million (Q1 FY19: $783 million).

“Our first quarter results underscore the strength of the Levi’s brand and the efficacy of our strategies to diversify our business, both of which will be crucial to coming out of the current crisis stronger than ever,” Chip Bergh, president and chief executive officer of Levi Strauss & Co, said in a press release.

Selling, general and administrative (SG&A) expenses were $660.5 million (Q1 FY19: $581.8 million). Operating income were $178.7 million (Q1 FY19: $200.9 million).

Revenues in the Americas grew 4 per cent to $746 million (Q1 FY19: $717 million).The region's direct-to-consumer net revenues grew 22 per cent.The region's wholesale net revenues declined five per cent. US wholesale net revenues fell 6 per cent.

In Europe, net revenues jumped 10 per cent to $513 million (Q1 FY19: $465 million) reflecting continued broad-based growth in both direct-to-consumer and wholesale channels across the region.

In Asia, net revenues decreased 2 per cent to $248 million (Q1 FY19: $253 million) as the growth across most of the region's markets was offset due adverse impact of store closures and reduced traffic during the last six weeks of the first quarter resulting from the Covid-19 outbreak, which was primarily concentrated in China but also impacted Hong Kong and north Asia.

“As this human and economic tragedy unfolds globally over the coming months, we are taking swift and decisive action that will ensure we remain a winner in our industry,” Bergh said.

Fibre2Fashion News Desk (JL)

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