Levi Strauss revenues declined 7 percent
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Adjusted EBIT was $120 million, down from $159 million.
Excluding $35 million in unfavorable currency translation effects, gross margin improved 30 basis points, primarily due to lower negotiated product costs and a streamlined supply chain.
Selling, general and administrative (SG&A) expenses for the first quarter of $425 million were flat compared with the same quarter of 2014, as currency favorably impacted SG&A by $22 million.
Excluding currency, earlier timing of advertising investment and higher costs associated with the expansion of the company's retail network and ecommerce business were partially offset by savings realized from the company's global productivity initiative.
Adjusted EBIT, which excludes the charges associated with the company’s global productivity initiative, was $120 million, down from $159 million in the same quarter of 2014, reflecting $13 million in unfavorable currency translation effects and the higher SG&A. A reconciliation of Adjusted EBIT is provided at the end of this press release.
Operating income of $107 million in the first quarter was up from $94 million in the same quarter of 2014 primarily due to lower restructuring charges associated with the company’s global productivity initiative. ■