Levi Strauss & Co has announced their financial results for the fourth quarter and fiscal year ended November 25, 2018. The company seems to be on growth path with positive growth of over 9 per cent in revenues. Chip Bergh, CEO, has been following a simple mantra to grow the brand – “Grow profitable core, expand for moreâ€Â. He found that the two main pillars of Levi’s global sales were – men’s bottoms and Docker’s men’s bottoms in the US. In fact, men’s products accounted for 72 per cent of the brand’s sales in 2017.
Focusing on these and the cash cow markets US, France, Germany, Mexico and UK , he used the cash generated here to develop the weaker areas like women’s clothing. As a result, the sales in women segment have been growing and the average age of buyer of Levis products has come down from
47 when he took over to approx
34 now. Besides, Direct to Consumer sales through owned retail stores and websites were given a renewed energy and as a result the sales from these jumped from 21 per cent of total sales to about 33 per cent now!
According to the results reported, the net revenues of Levis grew by
9 per cent however the net income declined by 17 per cent ($97 million) in the 4th quarter.
“We had an outstanding year with reported net revenues of $5.6 billion, growing 14 per cent year-over-year on a reported basis,†said Chip Bergh, President and Chief Executive Officer of Levi Strauss & Co. “It’s clear our strategies to diversify our product portfolio, expand our direct-to-consumer business, and deepen our connection with consumers worldwide have worked, resulting in both higher annual revenues and gross margins.â€Â
Focusing on these and the cash cow markets US, France, Germany, Mexico and UK , he used the cash generated here to develop the weaker areas like women’s clothing. As a result, the sales in women segment have been growing and the average age of buyer of Levis products has come down from
47 when he took over to approx
34 now. Besides, Direct to Consumer sales through owned retail stores and websites were given a renewed energy and as a result the sales from these jumped from 21 per cent of total sales to about 33 per cent now!
According to the results reported, the net revenues of Levis grew by
9 per cent however the net income declined by 17 per cent ($97 million) in the 4th quarter.
“We had an outstanding year with reported net revenues of $5.6 billion, growing 14 per cent year-over-year on a reported basis,†said Chip Bergh, President and Chief Executive Officer of Levi Strauss & Co. “It’s clear our strategies to diversify our product portfolio, expand our direct-to-consumer business, and deepen our connection with consumers worldwide have worked, resulting in both higher annual revenues and gross margins.â€Â