A formal review of strategic possibilities, including a possible sale or other strategic transaction, has been launched by Levi Strauss for the Dockers brand.
Levi Strauss’s net revenues for the third quarter came in at US $ 1.5 billion, which was 2 per cent higher on a constant-currency basis than on a reported basis. The company’s adjusted net income reached US $ 132 million, while its net income increased to US $ 21 million.
Michelle Gass, president and CEO of Levi Strauss & Co., stated, “The underlying fundamentals of our business are getting stronger, driven by the Levi’s brand, which grew 5 per cent globally in Q3, a significant acceleration from H1 and the highest revenue growth in two years.”
The business declared in a statement that the Levi’s brand had increased by 5 per cent worldwide. Net revenues in the Americas were steady when measured in constant currency and fell by 1 per cent when reported.
Net revenues in Europe grew by 7 per cent on a constant-currency basis and 6 per cent on a reported basis, indicating strong growth in most areas and across both channels.
Asia’s net revenues increased by 4 per cent on a constant currency basis and were essentially unchanged from the previous year.
Net revenues for other brands dropped by 7 per cent when reported and 5 per cent when measured in constant currency. In terms of reported value, dockers fell by 15 per cent, while in terms of constant currency, they fell by 12 per cent. On a reported and constant-currency basis, Beyond Yoga had a 19 per cent growth.
On a reported basis, DTC net revenues climbed by 12 per cent, but on a constant currency basis, they increased by 10 per cent. The US had a 12 per cent boost in DTC growth, while Europe saw a 9 per cent gain. E-commerce net revenues increased by 18 per cent on a constant-currency basis and 16 per cent on a reported basis. Net revenues from wholesale operations declined by 6 per cent when reported and by 5 per cent when measured in constant currency.
The company also stated that reported net revenues should increase by about 1 per cent in the upcoming fiscal year, while net revenues in constant currency should increase by 1.5 per cent to 2 per cent.
