Published
Apr 11, 2014
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Levi Strauss: a positive quarter in Europe

Published
Apr 11, 2014

The global productivity initiative announced on March 26 by Chip Berg, CEO of Levi Strauss & Co., has demonstrated a visible initial impact. In the first quarter, which ended on February 24, the company’s net profit was eroded by 41 million euros (57 million U.S. dollars) dedicated to restructuring.

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Levi Strauss & Co saw a net profit of 36 million euros (50 million dollars), a 53% drop as compared with the same period last year. Its earnings before interest and taxes, which does not take into account restructuring costs, fell by 9% to 115 million euros. Over the quarter, the company recorded a turnover down 1% at 819 million euros (1.13 billion dollars).

The Americas are the primary source of the decline. Sales decreased by 3% to 454 million euros, hit hard by lackluster wholesale business performance, especially on the women’s side. Asia remains stable at 147 million euros.

Europe, on the other hand, is doing fairly well with sales up 1% at 217 million euros, results mainly driven by store openings, but also by the success of its outlets

The company does not offer forecasts, but its CEO says he anticipates that “the market will remain very difficult for the next half.” With this in mind, the company plans to cut 800 jobs.

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