Levi Strauss has announced positive results in its fourth quarter and fiscal year ended November 25, 2018.The brand said that its net revenues for the quarter grew 9 percent on a reported basis and 11 percent on a constant currency basis, which excludes US $ 32 million in unfavourable currency translation effect. Full year net revenues grew 14 percent on a reported basis and 13 percent on a constant currency basis to US $ 5.6 billion, which excludes 44 million dollars in favourable currency translation effects.
Also, net revenues related to its direct-to-consumer business grew 13 percent for the fourth quarter and 18 percent for the full year. The credit for this goes to the performance and expansion of the brand’s retail network as well as growth of its online business.
Reflecting higher revenues from the Americas and Europe, Levi’s registered growth in the net revenues related to its wholesale business by 7 percent for the fourth quarter and 11 percent for the full year.
“We had an outstanding year with reported net revenues of US $ 5.6 billion, growing 14 percent year-over-year on a reported basis. It’s clear our strategies to diversify our product portfolio, expand our direct-to-consumer business and deepen our connection with consumers worldwide have worked, resulting in both higher annual revenues and gross margins.” – Chip Bergh, Chief Executive, Levi Strauss
On a reported basis, gross margin for the fourth quarter was 53.2 percent compared with 53.4 percent in the same quarter of fiscal 2017. Operating income of US $ 128 million in the fourth quarter was down from US $ 150 million in the same quarter of fiscal 2017.