LEVI’S ANNOUNCES MIXED RESULTS FOR FISCAL 2015 AND FOURTH QUARTER

San Francisco-based denim company Levi Strauss & Co. has announced its results for its fourth quarter and its 2015 fiscal year, which ended on November 29.

On a reported basis, adjusted EBIT grew 25 percent in the fourth quarter but declined five percent for the full year. On a reported basis, gross profit for the fiscal year decreased to $2,269 million compared with $2,348 million in 2014 due to unfavorable currency translation effects of approximately $166 million.

Gross margin grew to 50.5 percent of revenues compared with 49.4 percent of revenues in 2014, primarily due to lower negotiated product costs and streamlined supply chain operations. In the fourth quarter, on a reported basis, net revenues declined seven percent in the fourth quarter and five percent for the full year.

“Fiscal 2015 was a very challenging year with currency headwinds, the associated negative impact on tourism, and challenging retail dynamics globally. Despite these, we grew the top-line on a constant-currency basis, improved our structural economics, and further strengthened the balance sheet through refinancing our debt,” said Chip Bergh, president and chief executive officer. “We continued to grow our direct-to-consumer business, and saw a very positive consumer response to the products we introduced in the Fall. In 2016, we will continue to invest in our retail network, ecommerce and our brands to support our long-term profitable growth objective.”