Levi Strauss & Co., a US-based company known for its rugged denim, has announced the financial results for the third quarter ended August 28, 2016. The company’s net revenues noted a surge of 4 per cent to US $ 1,185 million as against previous year’s US $ 1,142 million. Higher revenues primarily reflected increased direct-to-consumer sales, which grew 14 per cent for the third quarter, on performance and expansion of the retail network as well as ecommerce growth.
In the period under consideration, the apparel brand generated net income of US $ 98 million, up 69 per cent compared to US $ 58 million in the corresponding period last year.
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As per the press release, the company reported gross profit of US $ 593 million as against US $ 573 million in the corresponding period under review. Additionally, Levi’s generated operating income of US $ 145 million, up from last year’s US $ 115 million. Adjusted EBIT for the third quarter zoomed 14 per cent to US $ 146 million due to higher direct-to-consumer sales and lower advertising costs, compared to US $ 128 million EBIT of last year.
“We are pleased with the third quarter results with broad-based revenue growth across all three regions despite the continued challenging environment, particularly in the U.S. Our direct-to-consumer business continues to drive our results with both brick and mortar and ecommerce growing double digits,” said Chip Bergh, President and CEO, Levi Strauss.
