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Levi Strauss bounces back from a bad year

2004-7-15
US jeans maker Levi Strauss & Co. posted a quarterly profit as increased sales of the struggling jeans maker''s lower-priced Signature line offset declines in its core Docker and Levi''s brands.

The San Francisco-based company reported a net profit of $5.6 million for the second quarter ended May 30, compared with a year-earlier net loss of $41.8 million. Sales climbed 3 percent to $958.8 million.

The company informed that sales of Docker and Levi''s fell as wholesale prices for both brands declined and it reduced shipments to warehouse and other off-price retail channels this year.

Levi Strauss is privately owned, but reports financial results because of its outstanding bonds.

The company has been struggling to reverse seven straight years of sliding sales amid tough competition from more youth-oriented brands.

During the second quarter, Levi announced plans to lay off 175 jobs and to close its two manufacturing plants in Spain.
 
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