Levi Strauss doubles Q1 profit, despite Asian sales drop

Levis SAN FRANCISCO—Levi Strauss & Co. doubled its first-quarter profit but saw a 2 percent dip in sales.

Net revenue was $1.147 billion, down slightly from last year’s Q1 revenue of $1.165 billion. The company’s sales were weighed down by an 11 percent drop in sales in the Asian market, particularly China. Sales in the Americas, the largest market for Levi Strauss, were flat at $647 million.

Earnings rose 117 percent to $107 million from last year’s Q1 earnings of $49 million.

“In the first quarter, we generated strong cash flow and posted a higher gross margin and net income, despite slightly lower revenues,” said CEO Chip Bergh in a statement. “We’re committed to reducing debt and strengthening the balance sheet. Our cash flow and a successful debt refinancing we executed after the quarter closed have allowed us to pay down $185 million of our debt this year.”

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