Levi Strauss had a net revenue growth of one per cent for the full year and its fourth quarter. While full-year net income grew 40 per cent, fourth quarter net income declined by five per cent. Though the company’s direct-to-consumer sales grew due to Levi Strauss’ current retail and e-commerce performance, investments in the same area hurt net income.
For the full year, net revenue grew the most in Europe at ten per cent, due to strong growth of its retail channels. In Asia, net revenues also grew six per cent, excluding unfavorable currency effects of 18 million dollars. Meanwhile, in the Americas, net revenues remained relatively flat.
This is the fourth consecutive year of profitable constant currency revenue growth behind the strength of the Levi's brand and its global direct-to-consumer business. Given the diversified portfolio, the company remains optimistic about long term prospects for growth.
Gross profit for the fiscal year grew to 2,329 million dollars compared with 2,269 million dollars in 2015. For the three-month-period, gross profit was 659 million dollars compared with 658 million dollars for the same quarter of 2015.
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.