Levi's profits drop because of investments | RetailDetail

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


Cultured meat in stores by 2021?

18/07/2018

Commercialization of laboratory cultured meat is coming closer. Pioneer Mosa Meat has raised 7.5 million euros for the construction of a factory that will bring an affordable product to the market within three years.

Discounters' major opportunities for growth in Western Europe

16/07/2018

Despite the multitude of stores in most European markets, discounters plan to open up to ten million square metres of store surface in five years' time. Even in so-called saturated markets they still see a lot of chances for growth, LZ Retailytics says.

Contamination bites huge chunks of Greenyard's value

16/07/2018

Vegetable producer Greenyard is under attack after a listeria contamination in its Hungarian factory. The company says to have taken all necessary measures, but the share price plummets.

Starbucks dumps plastic straws worldwide

12/07/2018

American coffee company Starbucks will ban plastic straws in their stores starting from 2020. A small step for coffee enthusiasts, but a big step for the environment, as the coffee giant uses about a billion straws every year.

AB InBev joins forces with Efes in Russia

12/07/2018

In order to counter the decline of their success on the Russian market, Belgian beer giant AB InBev has placed its activities in Russia in a joint venture with Turkish Anadolu Efes.

Jumbo appoints new head of Belgian branch

11/07/2018

Dutch Jumbo Groep Holding has made a management reshuffle, with Peter Isaac becoming the new managing director of the group's Belgian branch. Bart van den Nieuwenhof meanwhile is set to leave the group's restaurant chain La Place.