Levi's Economic picture

In the Americas, Levi’s has come back in a big way with their newest advertising campaign for jeans which features a very patriotic theme. In 2010, Levi’s advertised during the Superbowl and the ads which have a Walt Whitman poem as a voice over were a great hit. Levi’s had also purchased a number of retail stores and spent considerable sums on refurbishing the stores for a more contemporary shopping experience. For the first part of 2010, there were rising sales in the Americas. Strong currency exchange also lifted earnings results for denim sales for Levi’s. For the first quarter they reported a 17.2% rise in earnings to $56.4 million compared to $48.1 million for the same period in 2009. Revenues increased 8.8% to $1.04 billion from $951.5 million and sales gained 9.1% to $1.02 billion from $931.3 million with the Levi’s brand accounting for 84% of sales. American sales rose 8.2% to $545.2 million from $5.03.9 million. This was influenced by currency exchange but gains were also noted for the Levi’s men’s, juniors and boys wholesale channel.

At the same time the Dockers label and Signature Label showed declines. Robert Hanson, president of Levis Strauss Americas has said that revitalization of the other brands is in the works. While sales were down, Hanson reported that the Superbowl ads did provide a bump for Dockers and that online sales had increased as a direct result. Interestingly, Docker’s Europe has shown double-digit growth. European revenues rode 14.5% to $306.1 million from $267.3 aided by favorable currency exchange. The wholesale segment showed declines which were offset by company owned stores.

In the Asia Pacific region, India and China remain the growth engines. Revenues are up 2% to $183.8 million but that was boosted by a very favorable exchange rate which masks a slight decline. This was caused by lower sales in Japan. Stores are being added across India and China. In addition, LS&Co. is experimenting with selling jeans on credit with no interest fees in these markets.