Levi's profits drop because of investments

Levi's profits drop because of investments

2014 profits have dropped for American jeans brand Levi's, following retail network investments and discount campaigns meant to improve sales. Those did work though, as turnover did increase.

Turnover growth in all markets

The jeans manufacturer had a 6 million dollar (5.2 million euro) loss in the fourth quarter of 2014, a lot less than the 17 million dollar (14.9 million euro) profit in the same quarter last year. Turnover did grow in all markets, from 1.29 billion dollar (1.1 billion euro) to 1.39 billion dollars (1.2 billion euro). North and South American net turnover grew 8 %, Asian net turnover 4 % and European net turnover grew 7 %.

 

The company's full-year turnover grew from 4.68 billion dollars (4.1 billion euro) to 4.75 billion dollars (4.2 billion euro), while its profit dropped from 229 million dollars to 106 million dollars (200 to 93 million euro) because of its many investments to restructure the company (137 million euro) and in its retail network (64 million euro).

 

Levi's did open another 50 stores in 2014, bringing the total up to 565, and it wants to invest another 100 million euro in new stores in 2015. Its online sales still have a big margin for improval, as they only represent some 3 % of total turnover.

Questions or comments? Please feel free to contact the editors


Twelfth straight growth quarter for Walmart

17/08/2017

American supermarket chain Walmart has surpassed analysts’ expectations for the previous quarter, the company’s twelfth straight growth quarter. The world’s largest supermarket chain especially benefited from a strong online growth.

FrieslandCampina sells fruit juice division

17/08/2017

Dairy company FrieslandCampina has sold its fruit juice division, which also contained the Appelsientje brand to Dutch investment firm Standard Investment.

Carlsberg's turnover increases despite lower volumes

16/08/2017

In the first half of the year, Danish beer brewer Carlsberg’s turnover grew 2 % to 31.8 billion krona (4.3 billion euro). The improves sales for its more expensive beers, like Grimbergen, contributed to this turnover increase.

Losses keep growing for HelloFresh

14/08/2017

In the first half of 2017, meal box delivery service HelloFresh has seen both its turnover and its losses grow significantly. This gives mixed messages in the preparation of its IPO, which is planned this fall to create room for more investments.

Italian gelato is European market leader

11/08/2017

Italian cuisine is revered all across the globe, with people often thinking of pizza and pasta. However, Italians also have an ironclad reputation when it comes to ice cream. This is also reflected in sales, as Italians are the European market leader.

Oprah Winfrey and Kraft Heinz join forces

10/08/2017

American tv star Oprah Winfrey has joined forces with Kraft Heinz to develop a range of “healthy and nutritious soups and side dishes”. The range, currently only available in the United States, should help Kraft Heinz generate turnover growth once more.

Back to top