Levi Strauss & Co. reported unfavorable fourth quarter and full-year 2015 results. Chip Bergh, Levi’s president and CEO, cited earnings affected by currency headwinds, the associated negative impact on tourism and challenging global retail dynamics.
On a constant-currency basis, net revenues for the year declined one percent in the fourth quarter but grew one percent for the full year. On a reported basis, net revenues declined seven percent in the fourth quarter and five percent for the full year. Though results were negatively affected by currency translation, net revenue was helped by growth in Europe and Asia.
Direct-to-consumer sales grew mid-single digits on a constant-currency basis. This growth reflected expansion of the retail network and increases in e-commerce. Wholesale revenues declined on a constant currency basis for both periods on account of the company’s fourth fiscal quarter having one fewer week compared to the prior year.
The most dramatic growth came in net income, which increased 51 percent from 2014, reflecting the company’s lower restructuring charges associated with the company’s global productivity initiative, lower interest expense and a pension settlement loss recorded in the fourth quarter of 2014.
Chip Bergh, president and CEO, said, “We grew the top-line on a constant-currency basis, improved our structural economics, and further strengthened the balance sheet through refinancing our debt.” He continued, “In 2016 we will continue to invest in our retail network, e-commerce and our brands to support our long-term profitable growth objective.”