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LEVI STRAUSS ASSOCIATES REPORTS RECORD DOLLAR SALES, INCREASED OPERATING INCOME; EARNINGS LOWER DUE TO ONE-TIME CHARGE

 LEVI STRAUSS ASSOCIATES REPORTS RECORD DOLLAR SALES,
 INCREASED OPERATING INCOME; EARNINGS LOWER DUE TO ONE-TIME CHARGE
 SAN FRANCISCO, Oct. 7 /PRNewswire/ -- Continuing strong worldwide demand for its jeans and the appeal of DOCKERS(R) casual wear in the United States enabled Levi Strauss Associates Inc. (LSAI), the privately held parent company of Levi Strauss & Co., to achieve third quarter net sales of $1.5 billion, which marked the highest quarterly sales in the history of the company. Third quarter operating income increased 22 percent from the comparable quarter of 1991. However, the negative impact of a $158-million, one-time, pre-tax stock option charge resulted in net income of only $7.6 million for the quarter.
 For the third quarter ending Aug. 23, 1992, net sales rose 14 percent over the $1.3 billion reported for the same quarter of 1991. Dollar sales for the nine-month period were $4.0 billion, 13 percent above the $3.5 billion reported in the comparable 1991 period.
 The increases in net sales for the quarter and year-to-date were driven by record unit sales of 80 million and 216 million respectively. This represents increases in unit sales of 7 and 9 percent, respectively, compared to the same 1991 periods. The unit and dollar sales results reflect the overall worldwide popularity of the company's basic jeans and the strong demand in the United States for casual DOCKERS products.
 In the United States, the company achieved record dollar sales of $985.3 million for the third quarter of 1992 and $2.5 billion year-to-date, up 13 and 17 percent, respectively, over the comparable periods in 1991. The dollar sales increases reflected record unit sales and higher average unit selling prices. Unit sales of 62 million for the third quarter and 161 million year-to-date were also records, rising 9 and 13 percent, respectively, above the same periods a year ago.
 Record dollar sales outside the United States totalled $510.2 million in the current quarter and $1.5 billion for the nine months of 1992, up 17 and 7 percent, respectively, over the same periods of 1991. Dollar sales outside the United States accounted for 34 percent of the company's total dollar sales for the 1992 third quarter and 38 percent of total dollar sales year-to-date.
 The company's European and Asia Pacific divisions' record dollar and unit sales were partially offset by lower sales volume in Canada and Latin America. The unstable economic environment in Brazil more than offset increased dollar sales in Mexico, while Canada continues to experience lower consumer spending as the result of high unemployment.
 Operating income for the third quarter rose 22 percent to $229.4 million from $188.1 million a year earlier. Year-to-date operating income totalled $623.9 million, an 11-percent increase over the $563.8 million reported in the same period of 1991. Both increases reflected increased sales volume.
 Third quarter net income totalled $7.6 million, down 91 percent from 1991 due to a $158-million pre-tax stock option charge. Net income for the third quarter would have been a record $121.2 million without the effects of the stock option charge.
 Year-to-date net income totalled $226.5 million, a 10-percent decrease from 1991. The company indicated that, despite the third-quarter charge, it expects net income for the 1992 full year to be only slightly lower than the $356.7 million reported in 1991.
 The stock option charge resulted from a special arrangement approved by the board of directors to facilitate option holders' exercise of outstanding options granted under a 1985 stock option plan.
 Levi Strauss & Co. is the world's largest apparel manufacturer. The company designs, manufactures and markets apparel for men, women and children, including jeans, pants, shirts, jackets and skirts. It had 1991 revenues of $4.9 billion and employs approximately 32,100 people worldwide.
 -0- 10/7/92
 /CONTACT: Dave Samson of Levi Strauss, 415-544-7197/ CO: Levi Strauss & Co.; Levi Strauss Associates Inc. ST: California IN: REA TEX SU: ERN


GT-TM -- SF003 -- 7641 10/07/92 18:01 EDT
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Date:Oct 7, 1992
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