// Levi’s posted a 9% rise in net revenue for its fourth quarter
// Net revenues related to Levi’s direct-to-consumer business grew 13%
// In Europe, net revenues saw a growth of 13%
Levi Strauss has revealed positive results in its quarterly and full-year report, with its direct-to-consumer retail division enjoying double-digit growth.
For the firm’s fourth quarter November 25, net revenues grew by nine per cent on a reported basis and 11 per cent on a constant currency basis, which excludes $32 million (£24 million) in unfavourable currency translation effect.
Full year net revenues grew by 14 per cent on a reported basis and 13 per cent on a constant currency basis, which excludes $44 million (£33 million) in favourable currency translation effects.
Meanwhile, net revenues related to Levi’s direct-to-consumer business grew 13 per cent for the fourth quarter and 18 per cent for the full year, due primarily to performance and expansion of the company’s retail network, as well as growth of its online business.
Levi Strauss also reported having an additional 74 company-operated stores at the end of fiscal year than it did the year prior.
Net revenues related to the company’s wholesale business grew seven per cent for the fourth quarter and 11 per cent for the full year, mainly reflecting higher revenues from the Americas and Europe.
“We had an outstanding year with reported net revenues of $5.6 billion, growing 14 per cent year-over-year on a reported basis,” Levi Strauss chief executive Chip Bergh said.
“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.”
In Europe, net revenues saw a growth of 13 per cent on a reported basis and, excluding unfavourable currency translation effects of $14 million (£10 million), 17 per cent on a constant currency basis.
This reflected broad-based growth across all markets and channels, including strong growth in Levi’s women’s and tops business.
Operating income growth of 26 per cent reflected improved operating leverage driven by higher net revenues.
Net revenues in Europe grew 25 per cent on a reported basis and, excluding favourable currency translation effects of $50 million (£38 million), 21 per cent on a constant currency basis.
On a reported basis, gross margin for the fiscal year was 53.8 per cent compared with 52.3 per cent in fiscal 2017, primarily due to increased direct-to-consumer sales.