Levi 'S Net Profit Rose 71% In The First Quarter.

Business has always been the advantage area of Levi s group. Since its launch last year, women's clothing business has recorded double-digit growth for three consecutive quarters.

Affected by macroeconomic challenges, consumer shopping behavior and the continued strength of the US dollar, the first quarter net profit of American jeans group Levi Strauss &Co. rose 71% to 6 million 600 thousand US dollars. Its Dockers brand has already turned into a deficit, and women's clothing business has recorded double-digit growth for three consecutive quarters.

In the first quarter of February 28th, the group's net operating income increased slightly to $1 billion 57 million, compared with $1 billion 55 million in the same period last year.

Net profit rose 71% to $6 million 600 thousand from $3 million 800 thousand last year.

Levi 's group points out that the increase in net profit reflects the decrease in foreign exchange losses, as well as the adjustment of higher pre tax profits and lower interest costs.

The adjusted pre tax profit rose 4% to $124 million, rising 12% in a constant currency, and 120 million dollars in the same period last year.

The increase in pre tax profit mainly reflects the improvement of gross profit margin and higher constant monetary income, which partly offset the increase in investment cost of direct selling channels and advertising.

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From 50.9% last year to 53%, the increase in gross margin was mainly driven by lower consultative product costs and simplified supply chain operations.

Sales growth of international channels and direct selling channels has benefited from gross margins.

Affected by adverse currency conversion, sales of high-end product lines amounted to $46 million.

By region, net income in the Americas decreased by 1% to $571 million, while in Europe, it was flat compared with the same period last year, with net income of $276 million and Asia's 3% to 209 million dollars.

The operating income in the Americas fell 20% to 82 million US dollars, and the European region grew 6% to 62 million US dollars. The Asian region was flat compared with the same period last year and the operating income was 47 million US dollars.

By category, global men's wear, women's wear, high-end product lines and basic product lines all registered an increase.

Although money has an impact on performance, sales have grown quite widely.

Among them, the women's clothing business has been the advantage area of the group. Since the re launch last year, the women's clothing business has recorded double-digit growth for three consecutive quarters.

Chip Bergh, group president and chief executive, believes that this is a year of good start.

According to the brand, Dockers brand has turned into a profit but there still exist some shortages in wholesale business.

At present, the group has an appropriate plan to be implemented this summer, with the aim of resetting the various business of Dockers brand, including rechecking product classification.

Although the first quarter was relatively stable, the group thought that the adverse factors still existed, including the currency issue.

On a global scale, the volume of pactions has declined across the globe due to the difficulties faced by the tourism market.

Group president and chief executive officer Chip Bergh believes that the business of direct selling channels and international channels continues to drive group growth.

Looking ahead, the Group expects that the second quarter will be even more difficult compared with the same period last year, mainly due to planned retail and advertising investment, challenges faced by us wholesale channels and continued weakness.

The impact of consumer spending.