Apparel retailer Levi Strauss & Co. has unwrapped its financial results for the fourth quarter and full year fiscal 2015 ended in November, 2015.
The retailer noted 7 per cent and 5 per cent plunge in net revenue for the fourth quarter and full year, respectively. According to press release, on a constant currency basis, the net revenues for the reporting period and full year 2015 dived 1 per cent and zoomed 1 per cent, respectively. Besides, gross profit for the periods under review fell with the fourth quarter noting US $ 658 million compared to US $ 680 million in the previous year and the full year achieving US $ 2,269 million compared to US $ 2,348 million in 2014.
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Net income growth in both the periods primarily reflected lower restructuring charges associated with the company’s global productivity initiative, lower interest expense, and a pension settlement loss recorded in the fourth quarter of the prior year. On a constant-currency basis, Adjusted EBIT grew 36 per cent in the fourth quarter and six per cent for the full year. The growth for both periods was driven primarily by a higher gross margin, partially offset by augmented investments in the company’s direct-to-consumer channel.
Speaking on the tough period reported by the company, Chip Bergh, President and Chief Executive Officer of the company averred, “Fiscal 2015 was a very challenging year with currency headwinds, the associated negative impact on tourism, and challenging retail dynamics globally. Despite these, we grew the top-line on a constant-currency basis, improved our structural economics, and further strengthened the balance sheet through refinancing our debt. We continued to grow our direct-to-consumer business, and saw a very positive consumer response to the products we introduced in the Fall.”
Optimistic about future, Levi Strauss & Co. will continue to invest in its retail network, e-commerce business and brands to support its long-term profitable growth objective.
