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.