DALLAS, Jun 26, 2002/ FW/ — Last week, Levi Strauss & Co. reported that net sales for the second quarter was $924 million, a 12% decline from $1,044 million compared to the same period last year.
“We said the quarter would be tough and it was, but we are still on track to stabilize our sales by year-end,” commented Phil Marineau, CEO of Levi’s on the lackluster performance of the company.
“We were hit by stiff price competition in Europe, but our U.S. and Asia Pacific businesses met our expectations. Despite the difficult retail environment throughout most of our markets, we sustained solid profit margins, generated strong cash flow and brought down debt,” Mr. Marineau continued.
Even with the double-digit decrease in sales, the company continue to be optimistic for the rest of the year.
According to Mr. Marineau, Levi’s expect to see a significant improvement in sales trends during the last two quarters. He emphasized that the company has excellent booking with their retail customers and the planned new product launches will help drive sales.
The company plans to introduce lower-priced Levi’s® jeans and Dockers® khakis in Europe. It has also revamped the Levi’s® in the United States.