American denim brand Levi Strauss & Co has reported net revenues of $1,041m for the third quarter of 2012 fiscal.
The company’s net income slipped to $28m, compared to $32m a year earlier while gross profit for the reported period ending 26 August 2012 declined to $521m.
Operating income for the period amounted to $87m compared with $81m for the corresponding period of 2011.
Net revenues from the Americas grew primarily reflecting higher sales from Levi’s brand retail stores but declined overall due to the company’s decision to license its brand – ‘boys business’ and phasing out the ‘Denizen’ brand in Asia.
European net revenues from company-operated retail grew given the price increases and an expanded network of stores.
The retailer said net revenues in Asia Pacific fell as key market, India, faced increased economic challenges and also due to the decline in wholesale and franchisee revenues.
Commenting on the third quarter results Levi Strauss president and chief executive officer Chip Bergh said that the company aims to prioritize efforts behind its core business to drive sustainable, profitable growth and drive shareholder value.
"While the third quarter was impacted by the continuing difficult global macro-economic environment, we are very focused on what we can control: our product innovation and marketing programs, the key strategic choices we make and addressing our underlying cost structure.
"During the third quarter, we began to execute several initiatives against our goals, including exiting the Denizen brand from Asia and licensing the U.S. Levi’s boys business," Bergh added.
Levi Strauss has a global footprint of more than 2,300 franchised and company-operated stores with its products are sold in over 110 countries worldwide.