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LEVI STRAUSS ASSOCIATES INC. REPORTS THIRD QUARTER RECORD SALES & STRONG EARNINGS

 SAN FRANCISCO, Oct. 13 /PRNewswire/ -- Levi Strauss Associates Inc. (LSAI), the privately held parent company of Levi Strauss & Co., today announced record third-quarter dollar sales and strong earnings of $1.6 billion and $127.7 million, respectively.
 For the three months ended Aug. 29, 1993, LSAI's net sales rose 5 percent over the same quarter of 1992, marking the company's 14th consecutive quarter of billion-dollar sales. Year-to-date sales of $4.3 billion in 1993 were 7 percent greater than the comparable 1992 period.
 Third-quarter net earnings compared to prior year third-quarter net earnings of $7.6 million are distorted by the effects of a $158.0 million, one-time, pre-tax stock option charge recorded in the third quarter of 1992. Without the effects of that charge, earnings in the third quarter of 1992 would have totalled $121.2 million. The comparison of operating income for the 1993 third quarter of $237.2 million to the same quarter a year earlier, was also distorted by the stock option charge in 1992. Without the effects of the stock option charge, operating income would have increased 6 percent over the prior year.
 Year-to-date net income rose 55 percent to $351.4 million, up from $226.5 million earned after the stock option charge in the same period last year. Nine-month operating income of $615.8 million increased 37 percent over the comparable period of 1992, again mostly due to the effects of the 1992 stock option charge. Without the effects of the stock option charge, year-to-date net income and operating income would have been only 3 percent and 2 percent above the prior year, respectively.
 The company's U.S. operations posted dollar sales of $1.0 billion for the third quarter of 1993, up 5 percent from the comparable quarter last year. However, U.S. unit sales for the quarter decreased 2 percent, reflecting the sluggish U.S. economy, difficult retail conditions and low consumer spending that slowed sales in the traditionally strong "back-to-school" season. Year-to-date 1993 dollar sales for the United States totalled $2.7 billion, up 8 percent over the nine-month period of 1992.
 Dollar sales outside the United States for the third quarter rose 4 percent above the same quarter of 1992 to $530.7 million. For the nine-month period of 1993, non-U.S. dollar sales totalled $1.6 billion, 7 percent above the same period a year ago. Unit sales outside the United States were up 9 percent for both the quarter and nine-month periods.
 Although economic and market conditions outside the United States are also considered generally difficult, LSAI's Canadian and Brazilian businesses are performing better than anticipated despite continuing economic weakness in those countries. The European markets vary from country to country, but overall unit sales increased. However, the strong dollar compared to European currencies reduced dollars sales.
 Despite continuing weak economies in Japan and Australia, the Asia pacific Division achieved strong results. Additionally, the company recently launched new affiliates in Taiwan and Korea.
 Levi Strauss Associates Inc. is the world's largest brand-name apparel manufacturer. The company designs, manufactures and markets apparel for men, women and children, including jeans, pants, jackets and skirts. The company had 1992 sales of $5.6 billion and employs more than 34,000 people worldwide.
 LEVI STRAUSS ASSOCIATES INC.
 Financial Summary
 (In Thousands)
 3rd Quarter 3rd Quarter Percentage
 1993 1992 Change
 Net Sales $1,565,429 $1,495,452 5 percent
 Operating Income 237,175 65,524 (A)
 Net Income 127,666 7,606 (A)
 NOTE A: Comparison not meaningful due to one-time stock option charge in the third quarter of 1992.
 -0- 10/13/93
 /CONTACT: Dave Samson of Levi Strauss, 415-544-7197/


CO: Levi Strauss Associates Inc. ST: California IN: TEX SU: ERN

TM-LH -- SF007 -- 1750 10/13/93 13:58 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
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