Levi'S'S Two Quarter Revenue Is Still Failing To Grow.

Involvement in the US's difficult retail environment led to a sluggish wholesale business.

Giant Levi Strauss & Co.

Revenue in the two quarter still failed to grow, but profitability continued to improve significantly with reduced expenditure.

Levi Strauss & Co., Levi's CEO Chip Bergh, said in the quarterly report that the US group directly faced consumer business and international business strength in the quarterly group, which offset the decline in domestic wholesale sales, so that the overall net revenue remained unchanged at 1 billion 12 million US dollars in the same period last year. After excluding the impact of the exchange rate, there was an increase of 1%, and the negative impact of the US dollar strength was US $14 million.

By region, the income of the Americas decreased by 5.3% to 589 million US dollars compared with the same period last year, while Europe and Asia increased by 8.6% and 8.3% respectively, with the income being 241 million US dollars and 182 million US dollars respectively.

In line with the channel, the fixed exchange rate directly recorded a low double-digit increase in consumer business income, mainly due to the performance and expansion of the retail network.

The growth rate of wholesale business is low.

Chip Bergh Bergh pointed out that the traditional department store channel has been facing great challenges over the past year, and this channel occupies a large share of the group's US business. This also led to the group's annual stock growth of 29% to 790 million 400 thousand yuan per annualized year.

In the two quarter, Levi Strauss & Co., Levi's's net profit of $31 million, increased by 163% over last year's 12 million US dollars, reflecting a fall in restructuring expenses and a debt repayment in the same period last year.

However, the adjusted profit before tax can only maintain 62 million US dollars in the same period last year, and the increase of 170 basis points of gross margin (to 51.1%) is offset by direct investment in consumer business and higher advertising costs.

Chip Bergh said that it could not be too early to speculate about the impact of the UK's influence on the European sector. After all, British business accounted for only 4% of the group's sales.

He also optimistic about fixed exchange rate annual revenue, gross profit margin and profit growth target.