Levi's reports 9 percent increase in Q4 sales

Announcing its results for the fourth quarter and fiscal year ended November 25, 2018, Levi Strauss & Co. said net revenues for the quarter grew 9 percent on a reported basis and 11 percent on a constant currency basis, which excludes 32 million dollars 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 5.6 billion dollars, which excludes 44 million dollars in favourable currency translation effects.

"We had an outstanding year with reported net revenues of 5.6 billion dollars, growing 14 percent year-over-year on a reported basis,” said Chip Bergh, President and CEO of Levi Strauss & Co. in a statement, adding, “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."

Highlight’s of Levi Strauss’s Q4 and full year performance

Net revenues related to the company's direct-to-consumer business grew 13 percent for the fourth quarter and 18 percent for the full year, due primarily to performance and expansion of the company's retail network, as well as growth in its ecommerce business. The company had 74 more company-operated stores at the end of fiscal 2018 than it did at the end of fiscal 2017.

The company added that net revenues related to the company's wholesale business grew 7 percent for the fourth quarter and 11 percent for the full year, primarily reflecting higher revenues from the Americas and Europe.

Fourth quarter net income declined 17 percent to 97 million dollars, primarily due to a tax charge related to the impact of the Tax Act, while full-year net income was flat as higher operating income, lower interest expense, gains on hedging contracts in the current year, as well as a debt refinancing charge in the prior year, were partially offset by a one-time 143 million dollars tax charge related to the Tax Act. Fourth quarter adjusted EBIT decreased 18 percent and full year adjusted EBIT increased 13 percent.

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 128 million dollars in the fourth quarter was down from 150 million dollars in the same quarter of fiscal 2017. On a reported basis, gross margin for the fiscal year was 53.8 percent compared with 52.3 percent in fiscal 2017, primarily due to increased direct-to-consumer sales. Operating income of 537 million dollars for the fiscal year was up from 467 million dollars in fiscal 2017.

Regional overview of Levi Strauss’ results

In the Americas, fourth quarter net revenues grew 8 percent on a reported basis and 9 percent on a constant currency basis, reflecting higher revenues across both wholesale and direct-to-consumer channels across the region, while operating income for the region was flat. Full year net revenues in the Americas grew 10 percent on both a reported and constant currency basis, primarily reflecting continued growth in the wholesale channel driven by Signature and Levi's brands, and the strong performance of the company-operated retail network.

In Europe, net revenues grew 13 percent on a reported basis and, excluding unfavourable currency translation effects of 14 million dollars, 17 percent on a constant currency basis, in the fourth quarter, while operating income grew 26 percent. In Europe, full year net revenues grew 25 percent on a reported basis and, excluding favourable currency translation effects of 50 million dollars, 21 percent on a constant currency basis, reflecting broad-based growth across all channels, while operating income grew by 47 percent.

In Asia, fourth quarter net revenues grew 5 percent on a reported basis and, excluding unfavourable currency translation effects of 11 million dollars, 10 percent on a constant currency basis, reflecting expansion and performance of the company's direct-to-consumer business, while operating income decreased by 32 percent. Full year net revenues in Asia grew 8 percent on a reported basis and, excluding favourable currency translation effects of 1 million dollars, 8 percent on a constant currency basis, primarily reflecting expansion and performance of the company's direct-to-consumer business, while operating income grew by 11 percent.

Picture:Facebook/Levi's

 

RELATED NEWS

MORE NEWS

 

Latest jobs

 

MOST READ