Levi Strauss slumps by 12pc on lower profitBusiness | 11 Jul 2019 11:52 am
Levi Strauss slumped by 12 percent after the jeans maker’s latest quarterly report card showed its profit margins fell due to higher costs.
Second quarter net income fell by 63 percent primarily due to costs associated with IPO, the company said.
“Our second quarter and first half results reflect the continued strength of our diversified business model as we delivered broad-based growth across all brands, regions and key product categories despite a challenging retail and macroeconomic environment," said Chip Bergh, president and chief executive officer of Levi Strauss & Co. "For both periods, the Levi’s brand grew in all three regions across men’s, women’s, tops and bottoms and maintained its position at the center of culture through iconic products and consumer experiences."
Second quarter net income decreased by US$49 million, mainly due to US$29 million of costs associated with the company's initial public offering, inclusive of US$25 million of underwriting commissions paid on behalf of the selling stockholders.-AP/The Standard