Levi Strauss & Co. announced financial results for the fourth quarter and fiscal year ended November 30, 2014. Q4 revenues grew 7 percent on a reported basis, and ten percent without the impact of currency.
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Full-year net revenues increased two percent on a reported basis and three percent on a constant currency basis. Higher revenues primarily reflected the Black Friday sales week, which due to the timing of the company's fiscal year-end was an additional week in the company's fourth fiscal quarter as compared to the prior year. Higher revenues also reflected growth in the company's retail network.
Adjusted EBIT growth in the fourth-quarter and full-year was driven primarily by the higher revenues and savings from the company's global productivity initiative, partially offset by increased expenditures reflecting the company's retail network growth.
Fourth-quarter and full-year net income declined primarily due to restructuring and other related charges associated with the company's global productivity initiative of $53 million and $156 million, respectively, and a $31 million non-cash loss associated with the settlement of a portion of the company's pension obligations.
Gross profit in the fourth quarter was $680 million compared with $637 million for the same period in 2013 due to the company's higher net revenues. Gross margin for the fourth quarter declined 20 basis-points to 49 percent of net revenues. The promotional environment pressured margins, although margin benefited from higher retail revenues and savings in the company's sourcing organization.
Selling, general and administrative (SG&A) expenses for the fourth quarter increased to $581 million compared with $571 million in the same period of 2013. A $31 million non-cash loss associated with the settlement of a portion of the company's pension obligations, and the impact of the additional week in the fiscal quarter, were partially offset by savings from the company's global productivity initiative.
Adjusted EBIT, which excludes the charges associated with the company's global productivity initiative and the pension charge, was $134 million, an increase of $62 million compared with the same quarter of 2013. The increase reflected the company's higher revenues and savings from the productivity initiative.
Operating income for the fourth quarter declined to $50 million from $66 million for the same period in 2013, as the higher Adjusted EBITwas offset by $53 million in restructuring and other related charges associated with the company's global productivity initiative and the $31 million pension settlement charge. ■