Levi Strauss & Co. (NYSE: LEVI) reported stronger-than-expected earnings for its third quarter on Tuesday
Net revenues grew 4% on a reported basis, and 5% on a constant-currency basis excluding $19 million in unfavorable currency effects. The company's direct-to-consumer business grew by 12% on a constant-currency basis in the third quarter, primarily due to expansion and performance of the retail network and e-commerce growth.
Gross profit of $767 million for the third quarter rose 3% on a reported basis from $742 million in the prior year. Operating income for the third quarter was $171 million, up 8% compared to the prior year on a reported basis, as higher net revenues in Europe and Asia were partially offset by higher SG&A expenses associated with the expansion of the company-operated retail network.
Said CEO Chip Bergh, "We delivered strong third-quarter results and remain on-track to achieve our full-year expectations.
"Our strategies to diversify to faster-growing, high-opportunity, high gross margin businesses continue to drive momentum, as we again grew revenues double-digits internationally, in our direct-to-consumer business, and in the women’s and tops categories.
"As for the fourth quarter, we again expect strong performance in international, direct-to-consumer, women's and tops, and improved comparisons for U.S. wholesale. We'll stay focused on what we can control as we grow this business over the long-term."
Shares in Levi Strauss gave back $1.02, or 5.4%, to $17.94
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