India unit of global denim brand Levi Strauss & Co. has announced financial results for the third quarter of 2017.
During the reporting quarter, the denim maker noted a dip in profit due to the higher payout to the parent company despite a 12 per cent growth in sales.
In the third quarter of 2016, the brand’s sales were up 19 per cent.
Tough competition from other global brands such as H&M and GAP, clubbed with declining footfall at off-line stores since demonetisation, affected sales at Levi Strauss.
Levi Strauss India also reported a decline of 27 per cent in its net revenue to Rs. 57.8 crores. The brand discontinued its top line such as Dockers, Sykes, Signature and Denizen as they were hurting its margins. It also shuttered some of its unprofitable stores.
The company had noted a strong growth in India in the last two years with profitability in line with its strategy. India is an important market for Levi Strauss, said Sanjeev Mohanty, Managing Director, South Asia Operations.
At present, Levi Strauss has around 400 exclusive stores in India. The label is also available at various multi-brand stores across the country.
