Levi Strauss & Co., owner of Levi’s, Dockers, Signature by Levi Strauss & Co. and Denizen brands, announced second quarter financial results with almost flat earnings. The results were largely due to the loss of women’s Dockers at wholesale, as that brand transitions to a license model.
Net revenues declined six percent on a reported basis and grew one percent on a constant-currency basis. There were lower sales in American wholesale due to Dockers’ licensing to Hampshire Group, Limited, beginning in Spring 2015. The American losses were offset by increased sales from the retail network in Europe and Asia.
Net income was impacted by a $14 million loss on debt retirement and refinancing while operating income declined due to increased advertising spending and investment in the company’s direct-to-consumer channels.
The company expects additional savings in future periods to come from streamlining its planning and go-to-market strategies, implementing efficiencies across its retail, supply chain and distribution network, and pursuing improved procurement practices.
Chip Bergh, president and chief executive officer, said, “We continue to focus on what we can control, and make investments to generate consumer demand. As we move into the second half of 2015, we remain confident in our ability to grow full-year sales and adjusted EBIT on a currency-neutral basis, and look forward to the full global reset of our Levi’s women’s product line.”