Levi Strauss Posts Drop In Q3 Profit

Levi Strauss & Co reported a drop in its third-quarter profit. Levi Strauss posted quarterly profit of $50.6 million, versus a year-ago profit of $57.1 million. Adjusted EBIT slipped 2% to $119 million. Operating income declined to $105 million from $118 million. Its revenue climbed 1% to $1.15 billion. Sales in the Americas fell 2% in the quarter. However, sales rose 4% in Europe and surged 10% in Asia. The company's gross margin shrank to 48.7% from 50.2%. Levi Strauss now projects 2014 capital expenditures in the range of $80 to $90 million. "Despite continued external challenges, including soft retail traffic and a highly-promotional environment, we grew revenue in the third quarter by focusing on the controllable aspects of the business. The decline in net income essentially reflects the investments we're making to improve productivity," said Chip Bergh, president and chief executive officer.