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    North American Business Slack Levi 'S Parent's Three Quarter Profits Fall

    2014/10/11 22:31:00 27

    North AmericaBusinessLevi 'SParent CompanyProfit

    Because North America Business continued to slack, and Levi's Levi's parent company Levi Strauss & Co. continued to decline in the three quarter. As of the three quarter of August 24, 2014, group net profit fell 57 million 75 thousand to $50 million 620 thousand, or 11.3%, in the same period last year.

      


       The three quarter Operating profit also declined by 2%, from 125 million US dollars in the same period last year to 122 million US dollars, while sales in European region increased by 4%, from 275 million dollars in the same period last year to 286 million dollars, and the increase in European Regional revenue mainly benefited from the rise in sales of self operated stores. The euro area's three quarter operating profit rose to the US dollar in the same period last year. The US dollar mainly benefited from the increase in gross profit margin in the same period last year. Sales growth in Asia dropped to US dollars from the US dollar in the same period last year. The retail price of both retail channels and wholesale channels also contributed, but the price increase also had some effect. Levi Strauss & Co. sales in North America dropped 2%, from 710 million US dollars in the same period last year to 697 million US dollars. Sales decline was mainly due to the fall in wholesale business of women's clothing, and three quarter of North America.

       End In the three quarter of August 24, 2014, the total revenue of Levi Strauss & Co. group was $1 billion 154 million 100 thousand, an increase of 1% over the same period of 1 billion 141 million 300 thousand a year ago. Gross profit was 562 million 200 thousand dollars, a 2% decrease compared with 572 million 800 thousand a year earlier, and gross margin fell by 150 basis points, from 50.2% in the same period last year to 48.7%.

    Levi Strauss & Co. launched the business restructuring and cost reduction plan in March this year. The first phase of the plan will reduce about 800 non retail and non manufacturing jobs in the next 12-18 months, accounting for nearly 20% of the total number of employees. It is expected to save 75 million to 100 million dollars a year, aiming at streamlining the company's business and promoting long-term profit growth. The company said it had already spent $103 million by August 24, 2014, and the cost savings would be between $100 million and $125 million in the year to come, higher than expected.


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