Levi Strauss Profits Soared Nearly 70% Into A Big Celebration.

At present, the whole jeans industry is changing.

Despite the fact that jeans are still on the upswing in global sales, especially in the Chinese market, sales of jeans have been declining in the strongholds and important markets of jeans.

In the US and Western Europe, sales of all kinds of jeans fell by 16% and 10% respectively.

In order to update its brand, its brand Levi 's and its competitor Lee have made changes in denim fabrics recently, and have launched a pair of jeans with elastic cultivation.

In addition, Levi 's and Google cooperate with the Project Jacquard gesture induction technology in Levi s Commuter Trucker jacket. Project Jacquard allows users to directly control the mobile devices through jackets, which is very practical. Of course, this innovation is also aimed at the market of young people who love fresh and cool feelings.

US apparel company Levi Strauss&Co. released its third quarter earnings. According to earnings data, the company's sales and profits in the third quarter have increased, but the most important wholesale business is slightly weaker.

Up to now, the company's most important Cowboy brand Levi's has 662 stores.

Thanks to the company's sales growth and expenditure reduction, the company's pre tax profit increased by 14.5% to $146 million 300 thousand in the third quarter, while net profit soared by 69% to $98 million 300 thousand.

In the first quarter, the company's net profit rose by 71% and the second quarter profit rose to 163%.

However, the gross profit margin of the company dropped from 50.2% in the same period last year to 50%.

The growth is also offset by fluctuations in exchange rates and weak regional wholesale businesses in the US.

In the three months ended August 28th, 5% of the exchange rate was fluctuated, and the company's sales increased by 3.8% to 1 billion 190 million dollars.

It is noteworthy that the company's self run shops and e-commerce business have performed well, with a 14% increase in sales.

By region, sales in the Americas rose 1.5% to $724 million, while sales in Europe increased by 9.3% to $283 million, while sales in Asia increased by 5.3% to 179 million US dollars.

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 5 consecutive quarters. The Group Chairman and CEO Chip Bergh said earlier that this is a very good start for the company.

Chip Bergh pointed out that the company has achieved steady growth in the three major regions in the third quarter, including the largest US region in the company's business. In addition, the company will make the right strategy to upgrade the US region.

Because the business is still the largest part of the company's overall business.

It is reported that the wholesale business in the US area, including the Dockers brand, is mainly dependent on the mid sized department stores in the US, but these retailers have been negatively affected by the declining passenger flow and the electricity supplier business in recent years.

In addition, Chip Bergh also mentioned the impact of the US general election on sales.

As for

The company revealed that although the depreciation of the British pound has contributed to the growth of the UK business, a certain degree of loss has been caused by the exchange rate effect.

Chip Bergh believes that the pound will soon be warmer. If the pound continues to depreciate, the company will make timely adjustments.

Chip Bergh emphasizes that wholesale business is the biggest challenge for the company.

Under such an unbalanced retail environment, the company still has great opportunities to grow, because the strength of the company's brand can not be ignored.

The company has been committed to wholesale business. Even if wholesalers are faced with strong dollar and lower passenger flow, the company will take the right measures to improve the less wholesale business now.

In the US fashion retailing, the most influential ones are medium-sized department stores. Some discount department stores such as T.J. Maxx, Ross and Costco still perform well, while the high-end department stores Nordstrom, Sax stores and Niemann department stores also outperform mid size department stores.

At the analyst meeting, Chip Bergh admitted that despite the unsatisfactory market environment, the company thought that it was still full of opportunities in medium-sized department stores.