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Published
Oct 10, 2018
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Levi Strauss powers on with double-digit growth

Published
Oct 10, 2018

Levi Strauss Co. said on Tuesday that its strong revenue growth continued into the third quarter with revenues jumping 10 percent to $1.39 billion. 

Levi Strauss powers on with double-digit growth. - Facebook: Levi Strauss & Co

 
The iconic U.S. brand also saw net income shoot up 45 percent to $130 million for the three-month period, ended August 26, 2018. 
 
The San Francisco-based company delivered its fourth consecutive quarter of double-digit revenue growth.

"This growth was broad-based across virtually every part of our business, including all four brands, men’s, women’s, tops and bottoms, and all regions and channels, with results that put us among the top performers in the industry," explained Chip Bergh, president and chief executive officer, in a news statement. 
 
The Americas recorded net revenues of 9 percent reflecting higher revenues across wholesale and direct-to-consumer channels across the region, as well as a 4 percent increase in operating income. 
 
Internationally, Levi's soared in Europe and Asia where gains of 17 percent and 10 percent were reported, respectively, excluding negative currency exchanges.
 
By category, Levi's direct-to-consumer revenues grew 14 percent on a strong sales performance, as well as the expansion of its retail network, and e-commerce growth. 

Since last year, Levi’s has opened 65 new stores and has seen 8 percent growth in wholesale sales.
 
Adjusted EBIT grew 10 percent reflecting revenue growth and higher gross margins, while operating income for the third quarter of 2018 was up 8 percent at $159 million. 
 
Most recently, the company made several leadership moves to streamline decision-making and consolidate accountability for core business growth drivers.
 
This included the appointment of Liz O’Neill as executive vice president and president to create a consolidated product, innovation and supply chain, as well as a new direct-to-consumer organisation led by Marc Rosen, executive vice president and president. 
 
The company has also been partnering with influencers on new campaigns such as its latest collaboration with Grammy Award winning actor and musician Justin Timberlake on a 20-piece menswear collection, which launched earlier this month. 
 
Its reported fiscal 2017 net revenues were $4.9 billion. Levi's is on track to top $5 billion in sales this year, which would be a first since 1999.

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