Jeans Market Is Booming Again.

The tide is back.

Levi's's parent company's net profit increased by 15% in the three quarter, thanks to lower product cost, product price increase and reduced supply chain.

American cowboy clothing brand Levis' s Levi's parent Strauss Levi & amp; Co. three quarter net profit achieved a substantial increase of 14.9%, but net income was hit by a strong dollar and recorded a 1% decline.

Thanks to lower product costs, product price increases and supply chain streamlining, American cowboys.

Brand Levis' s parent company Levi Strauss & Co. achieved a 14.9% increase in the three quarter net profit. However, net income was hit by a strong dollar and recorded a 1% decline. After the exchange rate was removed, the retail and wholesale channels of all the groups in the market had strong performance, indicating the return of the trend of the cowboy fashion. The S

In the three quarter of August 30th, net profit of Levi Strauss & Co. rose to US $58 million 200 thousand from US $50 million 600 thousand in the same period last year.

Operating profit amounted to US $114 million 800 thousand, an increase of 9.2% over the same period last year of US $105 million 100 thousand, of which US operating profit increased by 18%. The operating profit of two major markets in Europe and Asia, excluding the exchange rate, increased by 32% and 66% respectively.

The improvement in profitability is mainly due to the growth of gross profit margin in Europe and Asia, which is faster than that in the US market. The gross margin has been raised by 150 basis points, from 48.7% in the same period last year to 50.2%.

Net income excluding the exchange rate has increased by 7% to $1 billion 142 million.

Europe and Asia are adversely affected by exchange rate fluctuations. In real terms, the income of the two districts decreased by 9.8% and 0.6% to 258 million US dollars and 170 million US dollars respectively, but the 12% and 9% increases were recorded after excluding exchange rate effects.

The United States reversed the decline in the past two quarters under the help of the new Levis s brand Levi's jeans denim series, increasing revenue from 2.3% to 713 million dollars, excluding the increase in the exchange rate by 5%.

Chip Bergh, President and chief executive officer of Levi Strauss & Co., points out that the group has been expecting a strong performance in the second half of the year, and now its three quarter results have been satisfactory.

He revealed that the new listing of women's clothing in August led to a double-digit sales growth in the group's self owned stores, coupled with continued retail expansion in Europe and Asia. Retail sales in the three quarter increased by 8% compared to the same period last year, and the wholesale channel also increased by 7%.

Chip Bergh expects that the upcoming retail holiday in the four seasons holiday season is still challenging, and the number of visitors to shops and consumption has declined.

The environment is still discounted, but he said the group is confident that the annual income and adjusted EBIT growth will be realized after the exchange rate is removed.

The adjusted EBIT in the three quarter was US $127 million 800 thousand, an increase of 7.8% over the same period last year of US $118 million 600 thousand.