American jeans brand Levi's suffered a 1.5 % turnover drop in the second quarter of 2014, with net profit taking a huge blow as it dropped 75 %.
European turnover rose
Levi's managed a 1.08 billion dollar (nearly 800 million euro) turnover in the second quarter, a 1.6 % drop compared to last year. European turnover rose 3 % however, but North and South American turnover dropped 3 % while Asian turnover also dropped (- 2 %).
That has impacted net profit as well, as that plummeted 76.2 % to 11 million dollars (8 million euro), while its operating profit dropped 6.5 % to 92.6 million dollars (68 million euro).
Woeful women's department
American women's jeans sales were the major culprit for the woeful results. According to CEO Chip Bergh, Levi's has not caught up to the need for soft, stretch denim fast enough. Unlike women's sales, men's sales did grow.
The shopping traffic has also declined in the United States and Bergh does not believe this trend will be turned around quickly, but he does feel the second part of the year will be better, supported by several large marketing campaigns.