Home / Knowledge / News / Fashion / Levi Strauss President pleased with solid Q3 performance
Levi Strauss President pleased with solid Q3 performance
03
Oct '08
Levi Strauss & Co. (LS&CO.) announced financial results for the third quarter ended August 24, 2008 and filed its third quarter 2008 results on Form 10-Q with the Securities and Exchange Commission.

Higher net revenues reflected growth in each of the company's three regions. The increase in net revenues was primarily driven by currency, the addition of brand-dedicated retail stores worldwide and sales growth at existing stores.

Revenues were adversely impacted by wholesale customer Chapter 11 filings in the United States during the second and third quarters, and slower performance in certain markets impacted by weakening economic conditions. The net income increase in the third quarter compared to the same period in 2007 primarily reflected lower interest expense.

The ongoing stabilization of the company's U.S. enterprise resource planning (ERP) system led to improved order fulfillment and lower costs in the third quarter compared to the second quarter.

"I am pleased with our solid third-quarter performance,” said John Anderson, president and chief executive officer. “All three of our regions grew, demonstrating that our global strategies are working even in the face of difficult economic conditions around the world. The Levi's brand is performing well globally. And our emerging markets and expanding retail network continue to provide revenue growth.

“Looking at the balance of the year, we are very mindful that economic conditions are deteriorating in many of our key markets around the world. In this challenging environment, we are continuing to invest in the business, including launching our first-ever global Levi's 501 campaign,” added Mr. Anderson.

Third Quarter 2008 Highlights:
• Gross profit in the third quarter increased to $532 million compared with $486 million for the same period in 2007. Gross margin for the third quarter increased to 47.9 percent of revenues compared with 46.3 percent of revenues in the third quarter of 2007. Gross margin benefited from a change in the sales mix, increased company-operated store sales and lower sourcing costs.

• Selling, general and administrative (SG&A) expenses for the third quarter increased to $385 million from $343 million in the same period of 2007. Increased expenses in the 2008 period include the effect of currency exchange, higher selling costs related to additional company-operated retail stores and higher expense related to the U.S. ERP stabilization. SG&A in the third quarter of 2007 was positively impacted by a $14 million benefit plan curtailment gain that was not repeated in the 2008 period.

• Operating income for the third quarter was $144 million compared with $143 million for the same period of 2007. Higher regional operating income in the 2008 period was partially offset by higher corporate expenses. The increase in corporate expenses was largely a result of lower expenses in the third quarter of 2007 due to the benefit plan curtailment gain.


Must ReadView All

Courtesy: Jens Mahnke from Pexels

Textiles | On 22nd Oct 2018

India levies anti-dumping duty on flax yarn from China

The ministry of finance, Government of India, has imposed definitive...

US polyester yarn makers allege dumping from China, India

Textiles | On 22nd Oct 2018

US polyester yarn makers allege dumping from China, India

Two major US synthetic yarn producers—Unifi Manufacturing, Inc...

Courtesy: Donear

Textiles | On 22nd Oct 2018

Aspiring middle class shaping menswear fabric trend

The key trends shaping menswear fabric include a new middle class and ...

Interviews View All

Saket Garg, Garg Corporation

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Headhonchos, Indian textile value chain

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

John Kelley,

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Kalai Selvi,

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

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

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


October 2018

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

news category


Related Categories:

Advanced Search