North America's business weakness Levi's parent company's third-quarter profit fell

Levi Strauss & Co. Levi's parent company Levi Strauss & Co. continued to fall in profits in the third quarter due to continued weakness in North American operations. As of the third quarter of August 24, 2014, its net profit fell to US$50.72 million, or 11.3%, from US$57.075 million in the same period last year.

In the third quarter, North American sales of Levi Strauss & Co. fell 2%, from US$710 million in the same period of last year to US$697 million. The sales decrease was mainly due to the decline in women’s wholesale business, and North America’s operating profit in the third quarter also dropped by 2%. Year-on-year $125 million fell to $122 million; European sales rose 4%, from $275 million in the same period last year to $286 million. Revenue in Europe rose mainly due to rising sales of self-operated stores, Europe quarter Operating profit rose 8% to 50 million US dollars, compared with 46 million US dollars in the same period of last year, mainly due to the increase in gross profit margin in the region; sales in the Asian region increased by 10%, from 156 million US dollars in the same period last year to 171 million US dollars, regardless of retail sales Channels or wholesale channels all contribute, and price increases have a certain impact, but operating profit in the Asia Pacific region fell 23% in the third quarter, from 23 million US dollars in the same period last year to 17 million US dollars, operating profit fell mainly by the region The poor gross margin effect caused by the marginal promotion.

For the third quarter of August 24, 2014, Levi Strauss & Co. Group’s total revenue was US$1.1541 billion, a 1% increase from US$1.1413 billion in the same period of last year; gross profit was US$562.2 million, 2% higher than US$572.8 million in the same period of last year In the decline, the gross profit margin dropped by 150 basis points, from 48.7% to 50.2% in the same period of last year. Due to the lower gross profit margin, operating profit in the third quarter fell to US$105.1 million from US$118.1 million in the same period of last year.

Levi Strauss & Co. launched its business restructuring and cost reduction plan in March this year. The first phase of the plan will reduce approximately 800 non-retail and non-manufacturing jobs in the next 12-18 months, which accounts for nearly 20% of the total number of employees. It is expected to save 75 million to 100 million U.S. dollars per year, aiming at streamlining Corporate business and promote long-term profit growth. The company stated that as of August 24, 2014, the program has already spent US$103 million, but the annual cost savings will reach US$100 million to US$125 million, which is higher than previously expected.