;
Home / Knowledge / News / Apparel/Garments / Levi Strauss sees double digit growth in Q3FY18

Levi Strauss sees double digit growth in Q3FY18

14
Oct '18
Courtesy: Levi Strauss & Co
Courtesy: Levi Strauss & Co
Levi Strauss & Co., one of the largest apparel brands, has witnessed double-digit revenue growth in the third quarter of fiscal 2018. Gross margin for the third quarter was 53.2 per cent of net revenues compared with 51.8 per cent in the same quarter of fiscal 2017, reflecting the margin benefit from revenue growth in the global direct-to-consumer channel.

Net revenues grew 10 per cent on a reported basis and 11 per cent excluding $14 million in unfavourable currency translation effects, driven by broad-based Levi's brand growth in all regions and channels. On a reported basis, direct-to-consumer revenues grew 14 per cent on performance and expansion of the retail network, as well as e-commerce growth. The company had 65 more company-operated stores at the end of the third quarter of fiscal 2018 than it did a year prior. Wholesale reported revenues grew 8 percent reflecting higher revenues in all regions.

The company's net income increased $40 million primarily reflecting lower income taxes, higher operating income and gains on the company's hedging contracts as compared with losses in the third quarter of fiscal 2017.

Selling, general and administrative expenses (SG&A) were $583 million compared with $510 million in the same quarter of fiscal 2017. SG&A as a percent of net revenues grew 160 basis-points compared to the same quarter of fiscal 2017 primarily reflecting higher selling and planned advertising expenses. Higher incentive compensation expenses in the quarter were offset by an adjustment made in the third quarter of 2017 to correct the timing of stock compensation accruals for retirement eligible employees.

Operating income for the third quarter of fiscal 2018 was $159 million was up 8 per cent for the third quarter compared to the same quarter of fiscal 2017 reflecting the revenue growth and higher gross margins, partially offset by higher SG&A.

"We delivered our fourth consecutive quarter of double-digit revenue growth," said Chip Bergh, president and chief executive officer, Levi Strauss & Co. "This growth was broad-based across virtually every part of our business, including all four brands, men’s, women’s, tops and bottoms, and all regions and channels, with results that put us among the top performers in the industry."

Cash from operations for the first nine months of the year was $205 million, a decrease of $90 million from last year. The decrease primarily reflects accelerated contributions to the pension plans that it made in connection with the change in tax law. Free cash flow for the first nine months of 2018 was negative $14 million, a decline of $162 million compared to the first nine months of fiscal 2017. This was due to the decrease in cash from operations as well as higher repurchases of common stock in connection with our equity incentive programme. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Vietnam targets $40 bn in textile-garment exports in 2019

Apparel/Garments | On 22nd Jan 2019

Vietnam targets $40 bn in textile-garment exports in 2019

The Vietnam Textile and Apparel Association (VITAS) has set a target...

Myanmar RMG units exporting to EU rose by 180 in 5 yrs

Apparel/Garments | On 22nd Jan 2019

Myanmar RMG units exporting to EU rose by 180 in 5 yrs

The number of readymade garment (RMG) factories in Myanmar that...

Courtesy: Microsoft

Textiles | On 22nd Jan 2019

Microsoft India launches e-com site for handloom weavers

Microsoft India recently launched a new e-commerce platform,...

Interviews View All

Shiladitya K Joshi, Truetzschler India Private Limited

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Binoy Ravjani, Hero's Fashion

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Rahul Bhadani, Looksgud

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Rajat Jaipuria,

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Kamal Kulshreshth,

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Robin Grankvist, OrganoClick AB

Robin Grankvist
OrganoClick AB

Robin Grankvist talks about PFCs, additives and various chemicals used in...

Robert Brunner, Devereux

Robert Brunner
Devereux

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

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

Leave your Comments


January 2019

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

news category


Related Categories:

Advanced Search