Net revenues at Levi Strauss & Co. increased during the first quarter ended 28 February, reflecting the continued growth of the Levi's brand worldwide including the benefit of business acquisitions made during 2009. Revenue improvements were partially offset by revenue declines in the wholesale channel in certain markets.
"We’re off to a good start for 2010 with revenue growth and our Levi’s brand performing well around the world," said John Anderson, president and CEO. "Our strategies are beginning to fuel top-line growth, with the acquisitions we made last year contributing to our overall revenue gains. We continue to invest in our business even as retail conditions remain challenging in many mature markets around the world, especially in Europe. These investments will put pressure on the bottom line in the near-term, but are essential to achieve our goal of sustained, profitable growth."
Gross profit in the first quarter increased to USD533 million compared with USD445 million for the same period in 2009. Gross margin for the first quarter increased to 51.5 percent of revenues compared with 46.8 percent in the same quarter of 2009. The gross margin improvement reflected strong Levi's brand performance, lower inventory markdown activity and increased contribution from company-operated retail stores, which typically generate a higher gross margin than the wholesale business.
Net revenues in Asia-Pacific increased on a reported basis and decreased on a constant currency basis. Growth in the company's developing markets in the region – driven by brand-dedicated retail store expansion – was more than offset by lower revenue performance in several mature markets.
