Levi Strauss & Co. posts 7% growth in third quarter

Sales for Levi Strauss continue on an upward trajectory in 2017. After recording increases of 4% and 6% in the year's first two quarters, the US group, owner of Levi's and Dockers, has posted a 7% revenue increase in the third quarter, closed at the end of August, compared to the same period last year.


Levi's
 
Levi Strauss's sales reached $1.268 billion (€1.073 billion) in the last quarter, with direct sales to consumers growing by 16% and wholesale revenue by 4%. The Americas remain the group's leading market, worth in total $739 million (+2%), while Asia was worth $182 million (+2%) and Europe was worth $348 million (+23%).

The group also reported a 180 base-point increase in its gross margin. However, due to unfavourable exchange rate adjustments and a series of equity operations, Levi Strauss's net income was down 10%, to $88 million. The group's EBIT was $147 million, up 1% compared to last year.

"Despite the changes affecting the retail world, we have achieved profitable growth," said the group's CEO Chip Bergh. "We are leveraging the strength of our diversified business and the confidence we have in our brands, and our advertising and media investment in the fourth quarter is growing exponentially."

The launch of the jacket developed with Google, and the initiatives celebrating the 50th anniversary of the Trucker Jacket (70505 Type III Trucker 1967), reinterpreted by 50 celebrities, artists and influencers from around the world, will add great energy to the year-end for Levi's.

In 2016, the group generated a revenue of $4.6 billion, and has revised its guidance for the fiscal year 2017 as a whole, currently forecasting a growth between 5% and 6%.
 

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