Levi Strauss Asia sales post solid growth
Levi Strauss Asia sales grew 12 per cent in the second quarter (on a constant-currency basis) with strong performance across both wholesale and direct-to-consumer channels.
Globally, the denim-led lifestyle-fashion retailer achieved 9-per-cent growth on a constant-currency basis, however second-quarter income fell by US$49 million, largely due to $29 million in costs relating to the company’s IPO.
Gross profit for the second quarter rose 4 per cent to $700 million.
“Our second quarter and first half results reflect the continued strength of our diversified business model as we delivered broad-based growth across all brands, regions and key product categories despite a challenging retail and macroeconomic environment,” said Levi Strauss & Co president and CEO Chip Bergh.
“For both periods, the Levi’s brand grew in all three regions across men’s, women’s, tops and bottoms and maintained its position at the centre of culture through iconic products and consumer experiences.”
In Asia, revenue growth was broad-based across the region’s markets. The region’s operating income grew 4 per cent on a reported basis and 15 per cent on a constant-currency basis, reflecting higher revenues partially offset by a decline in gross margin and higher direct-to-consumer costs.
Globally, sales by the company’s direct-to-consumer business grew by 9 per cent in the second quarter, primarily due to performance and expansion of the retail network and e-commerce growth. The company had 78 more company-operated stores at the end of the second quarter of this year than it did 12 months earlier. The company’s wholesale business grew reported revenues by 3 per cent, reflecting growth in all the regions.