Levi Strauss & Co announced financial results for the first quarter ended February 25, 2007 and filed its first-quarter 2007 Form 10-Q with the Securities and Exchange Commission.
First-quarter results reflect continued improvements in the company's key operating measures, including net revenues and net income.
Net revenues for the first quarter were $1,037 million compared to $968 million for the same quarter in 2006, a 7 percent increase. Net revenues grew in each of the company's three regions. The increase primarily reflects growth in the Levi's brand across all regions due to a higher proportion of premium-priced product sales, strong growth in emerging markets and additional brand-dedicated retail stores. Net revenues also benefited from favorable currency exchange rates.
Net income for the first quarter increased 61 percent to $87 million compared to $54 million in the same quarter of 2006. The improvement reflects an 11 percent increase in operating income, mostly driven by a $25 million benefit-plan curtailment gain related to the closure of a U.S. distribution center, lower interest expense and a lower effective tax rate, partially offset by higher restructuring expenses.
“We're off to a good start this year,” said John Anderson, chief executive officer. “Our sales grew for the second consecutive quarter, reflecting a broad-based improvement worldwide. Our premium products are doing well with consumers in many markets. At the same time, some businesses, including Japan and the U.S. Levi Strauss Signature brand, need considerable improvement. Overall, we made very good progress in the quarter.”
marketing@alchempro.com
