Levi Strauss’ net income rose 69 per cent in Q3 thanks to cost-cutting efforts and rising revenues. Net revenues grew four per cent on a reported basis and five per cent in unfavorable currency translation effects. Revenue growth was due to increased direct-to-consumer sales, which grew 14 per cent in the quarter for stores and e-commerce.
Excluding currency fluctuations, costs were lower thanks to reductions in advertising costs and restructuring-related charges. The company is opening more own stores. There will be 42 more company-operated stores at the end of the third quarter of 2016 than at the end of the same period last year.
Levi’s has struggled in recent years, first as high-end jeans usurped its iconic place as the go-to denim maker and then as athleisure took over as the favored way to dress around town. Levi Strauss’ direct-to-consumer business continues to drive its results with both brick and mortar and e-commerce growing double digits.
Levi Strauss jeans are used by both workers as well as rock stars. It’s known for the 501 design and now the brand is adding stretch to this line. The move has been prompted by consumer preferences for comfort, which has women especially wearing yoga pants beyond their exercise classes.