Second-quarter profits at Levi Strauss skyrocketed three-fold to $48 million over last year’s Q2 income of $13 million. Sales were up five percent to $1.099 billion, driven by the Levi’s and Dockers brands.
Gross margin was up 400 points over the previous year’s second quarter. The company credited cheaper cotton, the demise of the Denizen brand in Asia and a boost in sales at company-owned retail stores.
“We are encouraged by the second quarter’s progress—revenues up five percent and dramatically improved gross profit and net income,” commented CEO Chip Bergh in a statement. “The results reflect in part the key choices we made last year to focus on our profitable core business, expand selectively beyond the core and become a world class retailer. While we clearly have more work to do, we will sharpen our focus on our core brands—Levi’s and Dockers—with compelling product and innovation, while also investing behind brand-building and improving the overall consumer experience, whether in our own stores or with our key retail partners.”