Both the turnover and net profit went down. Turnover was down 6% and net income was down 41%. This is surprising since denim has been the only one segment in the textile sector which has been showing positive growth in last one year. The imports of denim is also continuously rising in US with over 6% rise in imports of Women’s denim in the first 6 months of this year.
Levi’s Financial Results 3rd quarter 2009
|Particulars||Quarter ending August 30, 2009||Quarter ending August 30, 2008||% Decrease|
|Net Revenues||$1.040 billion||$1.111 billion||-6 %|
|Net Income||$41 million||$69 million||-41%|
The company’s says that its reflected the challenging global economy and the adverse effect of currency exchange rates compared to the prior year.At constant currency, the results change a bit, but still show the same trend .
The sales of the company region wise can also be seen below for this quarter. Both the Americas and European region have shown a fall in sales, and only the Asia Pacific region has shown an increase in sales .
Region wise sales of Levi’s products 3rd quarter 2008 &2009
|Region||August 30,2009||August 30,
|Americas||$616 million||$649 million||-5% (-3% at constant currency)|
|Europe||$266 million||$306 million||-13% (-2% at constant currency)|
|Asia Pacific||$158 million||$156 million||+2% (+4% at constant currency)|
Is Levi’s not yet able to fully adapt itself to the changing denim environment like some other companies . Does it need to do something more in the Premium denim segment like Gap ?