San Francisco-based denim brand Levi Strauss & Co. announced financial results today for the fourth quarter and fiscal year ended November 27, 2016.
For the fourth quarter, revenues grew one percent on a reported basis in the fourth quarter and grew two percent excluding $6 million in unfavorable currency translation. Fourth quarter net income declined five percent primarily reflecting investments associated with the expansion of our company-operated stores network and e-commerce. Adjusted EBIT declined 13 percent on a reported and constant-currency basis, primarily reflecting investments related to the expansion of the company’s direct-to-consumer business, the unfavorable transactional impact of the devaluation of the British pound and lower gross margin.
For the full year, reported revenue grew one percent and grew three percent excluding $77 million in unfavorable currency translation. Net income grew 40 percent primarily reflecting higher gross margins, lower restructuring and related charges, prior year debt extinguishment, which partially offset by increased investments in retail and e-commerce. Adjusted EBIT was flat on a reported basis but grew two percent on a constant-currency basis, primarily reflecting higher gross margins, partially offset by increased investments in the company’s direct-to-consumer business.
“We are pleased to report our fourth consecutive year of profitable constant currency revenue growth behind the strength of the Levi’s brand and our global direct-to-consumer business,” said Chip Bergh, president and chief executive officer. “Looking ahead, although it remains a very challenging environment, given our diversified portfolio, we remain optimistic about our long term prospects for growth.”