Levi Strauss’s net revenues grew 14 per cent this fiscal year. The company’s strategies to diversify the product portfolio, expand the direct-to-consumer business and deepen its connection with consumers worldwide have worked, resulting in both higher annual revenues and gross margins.
The company had 74 more company-operated stores at the end of fiscal 2018 than it did the previous year. Levi Strauss, based in San Francisco, is known for Levi’s jeans.
While revenue grew in 2018, net income for the fiscal year remained flat. That was due to higher operating income, lower interest expense, gains on hedging contracts in the current year as well as a debt refinancing charge in the prior year. For the fourth quarter, net revenue grew nine per cent with net income declining 17 per cent from the previous year. Profits were affected by an increase in selling and general and administrative expenses for the fourth quarter. The increase in costs reflected the expansion of the company’s direct-to-consumer business, higher compensation expenses reflecting the company’s stronger performance and higher advertising expenses.
During fiscal 2018, net revenues for the Americas were up 10 per cent. Sales in Europe grew 25 per cent. Sales in Asia grew eight per cent.