Levi Strauss, the iconic jeans maker based in San Francisco, has reported a net loss of $2 million for the fiscal second quarter ended May 28. This marks a significant swing from the $50 million profit recorded in the same period last year. The company’s earnings per share, excluding one-time items, came in at 4 cents, surpassing analysts’ expectations of 3 cents.
Sales for the quarter reached $1.34 billion, in line with analysts’ forecasts and slightly down from $1.47 billion in the year-ago quarter. The Americas region experienced a notable 22% decline in sales, while European sales saw a more moderate drop of 2%. In contrast, sales in Asia increased by 18% to $261.7 million.
Despite the challenging sales figures, Levi Strauss managed to increase its gross margin to 58.7%, up from 58.1% the previous year. This improvement was primarily driven by higher prices and reduced air freight costs. However, the company did face headwinds from lower full-price sales and higher product costs.
Overall, Levi Strauss is working to navigate through a difficult retail environment and adapt to changing consumer preferences. By continually reviewing its strategy and exploring new opportunities, the company is striving to regain its position as a market leader.