Levi Strauss & Co announced financial results for the third quarter ended August 27, 2006 and filed its third-quarter 2006 Form 10-Q with the Securities and Exchange Commission.
Net revenues for the third quarter were $1,023 million compared to $1,037 million for the same quarter in 2005, an approximately 1 percent decrease on a reported basis and a 2 percent decrease on a constant-currency basis.
The change in net revenue primarily reflects lower U.S. Levi Strauss Signature and Asia Pacific sales, partially offset by increased U.S. Dockers sales.
Net income for the third quarter increased 29 percent to $49 million compared to $38 million in the same quarter of 2005.
The improvement reflects a 14 percent increase in operating income, primarily driven by a $29 million benefit-plan curtailment gain related to the planned closure of a U.S. distribution center, partially offset by higher income tax expense.
“We improved our profitability and cash flow – our primary objective this year,” said Phil Marineau, chief executive officer. “We're addressing a number of challenges to our business, including fixture reductions at U.S.”
“Wal-Mart stores and a sales decline in Japan. However, in the face of retailer consolidation in the United States and the challenging European market, I'm pleased with the U.S. Levi's and Dockers performance and the improving trends in Europe.”
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