Levi Strauss & Co., one of the world’s largest brand-name apparel companies and a global leader in jeans-wear, has announced financial results for the second quarter ended May 27, 2018. The reporting quarter turned out to be third consecutive quarter of double-digit revenue growth for the retailer.
Levi’s® brand growth in all regions and channels helped it to note 17 per cent increase in net revenue on a reported basis during the period under review, and 13 percent excluding US $ 35 million in favourable currency translation effects.
Net income for the retailer increased by US $ 59 million primarily reflecting gains on the company’s hedging contracts in the second quarter as compared to losses on hedging contracts and a debt refinancing charge in the same quarter in previous fiscal.
Operating income increased by 22 per cent to US $ 77 million in the reporting quarter as compared to the same quarter in last fiscal. Performance and expansion of the retail network and ecommerce growth were vital in growth of direct-to-consumer revenues. It reported 19 per cent increase on a reported basis. A total of additional 53 company-operated stores were added by the retailer as compared to the same period last year.
Region-wise, it reported 11 per cent increase in net revenues, however; the brand reported 5 per cent decline in operating income in the region, as higher revenues were more than offset by planned increased direct-to consumer and advertising expenses this quarter.
With the strongest growth in women tops, the brand posted 19 per cent increase in net revenues in Europe. Operating income for the retailer witnessed 53 per cent increase, which reflects higher revenues, partially offset by direct-to-consumer and advertising investments. Revenue increased by 9 per cent in Asia while operating income for the retailer in the region grew by 73 per cent.
“Now we have exceeded our expectations and raised our full-year revenue guidance after awesome results in the second quarter which have outpaced the industry,” stated Chip Bergh, President and Chief Executive officer, Levi Strauss & Co.