• Operating income for the fourth quarter was $143 million compared with $190 million for the same period of 2007, reflecting higher SG&A expenses.
• Interest expense for the fourth quarter decreased to $35 million compared to $49 million in 2007.
Fiscal Year 2008 Highlights: • Gross profit for the fiscal year increased to $2,140 million compared with $2,042 million in 2007. Gross margin increased to 48.6 percent of revenues for the year compared with 46.8 percent of revenues in 2007.
• Selling, general and administrative expenses increased to $1,606 million for 2008 compared to $1,387 million the prior year. Increased expenses in 2008 included higher selling costs resulting from additional company-operated retail stores, higher expense related to the U.S. ERP stabilization and increased advertising and promotion expenses primarily for the global Levi's 501 campaign. 2007 SG&A was positively impacted by $53 million in benefit plan curtailment gains compared with $6 million in 2008. The impact of currency contributed approximately $32 million to the increase in SG&A expense for 2008.
• Operating income in 2008 decreased to $525 million compared to $641 million in 2007, primarily reflecting the higher SG&A expenses.
• Interest expense for the year decreased to $154 million compared to $216 million in 2007. The decrease was primarily attributable to lower debt levels and lower average interest rates in 2008 following the company's refinancing and debt reduction activities in 2007.