0000094845-01-500031.txt : 20011008
0000094845-01-500031.hdr.sgml : 20011008
ACCESSION NUMBER: 0000094845-01-500031
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 1
CONFORMED PERIOD OF REPORT: 20010919
ITEM INFORMATION: Other events
ITEM INFORMATION: Financial statements and exhibits
FILED AS OF DATE: 20010919
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: LEVI STRAUSS & CO
CENTRAL INDEX KEY: 0000094845
STANDARD INDUSTRIAL CLASSIFICATION: APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [2300]
IRS NUMBER: 940905160
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1125
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 002-90139
FILM NUMBER: 1740291
BUSINESS ADDRESS:
STREET 1: 1155 BATTERY ST
CITY: SAN FRANCISCO
STATE: CA
ZIP: 94111
BUSINESS PHONE: 4155446000
MAIL ADDRESS:
STREET 1: 1155 BATTERY STREET
CITY: SAN FRAINCISCO
STATE: CA
ZIP: 94111
8-K
1
releaseq3.txt
PRESS RELEASE DATED SEPTEMBER 29, 2001
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): September 19, 2001
Levi Strauss & Co.
(Exact name of registrant as specified in its charter)
DELAWARE 333-36234 94-0905160
(State of Incorporation) (Commission File Number) (IRS Employer
Identification Number)
1155 Battery Street
San Francisco, California 94111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 501-6000
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE.
Attached hereto as Exhibit 99 is a copy of Levi Strauss & Co.'s press
release dated September 19, 2001 titled "Levi Strauss & Co. Reports
Third-Quarter Financial Results."
ITEM 7. EXHIBIT.
99 Press Released dated September 19, 2001.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: September 19, 2001
LEVI STRAUSS & CO.
By /s/ William B. Chiasson
-----------------------
William B. Chiasson
Title: Senior Vice President and
Chief Financial Officer
EXHIBIT INDEX
Exhibit Number Description
-------------- -----------
99 Press Release dated September 19, 2001
Exhibit 99
LEVI 1155 Battery Street, San Francisco, CA 94111
STRAUSS
& Co.
NEWS Investor Contact: Christine Greany
Tidal Communications, Inc.
(203) 866-4401
For Immediate Release
--------------------- Media Contact: Linda Butler
Levi Strauss & Co.
(415) 501-3317
LEVI STRAUSS & CO. REPORTS THIRD-QUARTER FINANCIAL RESULTS
SAN FRANCISCO (September 19, 2001) - Levi Strauss & Co. today announced
financial results for the third quarter of fiscal 2001 ended August 26, 2001.
Weak retail markets in the United States and Japan negatively affected the
company's overall sales; however, the company maintained solid margins and
continued to make progress in its business turnaround.
Third-quarter net sales declined 12.8 percent to $984 million from $1,128
million in the third quarter of fiscal 2000. Had currency rates remained
constant at 2000 levels, net sales would have declined approximately 10.7
percent for the period.
"Weak economies and retail markets in the U.S. and Japan are slowing the pace of
the company's business turnaround," said Philip Marineau, Levi Strauss & Co.
chief executive officer. "Despite this, we are confident that our turnaround
strategies are the right ones. During the past 24 months, we've made significant
improvements in our overall financial picture, supply chain performance, retail
relationships, and products and marketing programs. But it will take more time
to fully stabilize the company in this very uncertain economic environment.
"Our financial condition remains strong," said Marineau. "We're tightly managing
costs; we have strong margins, and we reduced debt in the current quarter.
Moreover, when we bring relevant product to the consumer, surround it with the
right advertising and retail programs, and ensure that it's easy to find and
buy, we see sustainable improvements," Marineau continued. "This is the case in
Europe, where our business is stabilizing.
--more--
LS&CO. Q3/Add One
September 19, 2001
"In the U.S. we have initiated additional marketing programs for the fourth
quarter to support our retail customers and improve our sales trends," said
Marineau. "Our Levi's(R) Superlow jeans for juniors in the U.S. is a great
illustration of the power of the Levi's(R) brand when we execute our strategic
formula effectively. It's the right product for the market, supported by
relevant and appealing TV advertising with our new 'Belly Button' spot. In
retail stores where our Superlow jeans had the appropriate placement and
point-of-sale support, we saw excellent rates of sale. The same is true with our
new Dockers(R) Mobile(TM) pant for men."
Third-quarter gross profit was $399 million, or 40.6 percent of sales, versus
$464 million, or 41.2 percent of sales, in the comparable period of 2000. While
gross margins declined slightly from prior year, primarily due to production
downtime costs incurred in the third quarter of 2001, the third-quarter margin
of 40.6 percent is strong, reflecting lower sourcing and fabric costs and
reduced inventory markdowns.
Operating income for the quarter decreased 20 percent to $93 million compared to
$116 million in the third quarter of fiscal 2000.
EBITDA, which the company defines as operating income excluding depreciation and
amortization, was $112 million, or 11.4 percent of sales, versus $142 million,
or 12.6 percent of sales, in the third quarter of 2000.
Net income in the third quarter decreased 60.3 percent to $15 million compared
to $38 million in fiscal 2000. Tighter cost controls and lower interest expense
were not enough to offset lower sales and the impact of currency volatility on
the company's foreign currency hedging activities.
During the third quarter, total debt was reduced by $50 million to $2.158
billion, compared to $2.208 billion as of May 27, 2001.
Bill Chiasson, chief financial officer, said, "Although we do not expect to
achieve our previous sales guidance for the year, we believe full-year gross
margins and EBITDA margins will be in line with our previously stated
expectations. An extremely important priority of ours is to continue to bring
down debt. To this end, we will continue to focus our efforts on reducing
inventory levels, which would result in greater cash flow in the fourth
quarter."
--more--
LS&CO. Q3/Add Two
September 19, 2001
Levi Strauss & Co. is one of the world's leading branded apparel companies,
marketing its products in more than 80 countries worldwide. The company designs
and markets jeans and jeans-related pants, casual and dress pants, shirts,
jackets and related accessories for men, women and children under the Levi's(R)
and Dockers(R) brands.
The company's third-quarter investor conference call, featuring Philip Marineau,
chief executive officer; Bill Chiasson, chief financial officer; and Joe Maurer,
treasurer, will be available through a live audio Webcast at www.levistrauss.com
on September 19, 2001 at 10 a.m. EDT. A replay is available on the Web site the
same day beginning at approximately 2 p.m. EDT and will remain until October 3,
2001. A telephone replay also is available at (973) 341-3080, pin #2797298, from
approximately noon EDT on September 19 through September 26, 2001.
This news release includes forward-looking statements about retail conditions;
sales performance and trends; inventory position and management; debt repayment
and liquidity; gross margins and EBITDA margins; product innovation and new
product development in our brands; expense levels including overhead and
advertising expense; retail relationships and developments including
sell-through; presentation of product at retail and marketing collaborations;
marketing and advertising initiatives; and other matters. We have based these
forward-looking statements on our current assumptions, expectations and
projections about future events. When used in this discussion, the words
"believe," "anticipate," "intend," "estimate," "expect," "project" and similar
expressions are intended to identify forward-looking statements, although not
all forward-looking statements contain these words.
These forward-looking statements and the discussion are subject to risks and
uncertainties including, without limitation, risks related to the impact of
changing domestic and international retail environments; changes in the level of
consumer spending or preferences in apparel; dependence on key distribution
channels, customers and suppliers; competitive products; changing fashion
trends; our supply chain executional performance; ongoing competitive pressures
in the apparel industry; trade restrictions; political or financial instability
in countries where our products are manufactured; and other risks detailed in
our annual report on Form 10-K, registration statements and other filings with
the Securities and Exchange Commission. Our actual results might differ
materially from historical performance or current expectations. We do not
undertake any obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.
###
LEVI STRAUSS & CO.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands)
(Unaudited)
Three Months Ended Nine Months Ended
------------------------ -----------------------
August 26, August 27, August 26, August 27,
---------- ---------- ---------- ----------
2001 2000 2001 2000
----- ----- ----- -----
Net sales........................................................ $983,508 $1,127,740 $3,023,828 $3,359,221
Cost of goods sold............................................... 584,279 663,418 1,732,170 1,957,328
-------- ---------- ---------- ----------
Gross profit.................................................. 399,229 464,322 1,291,658 1,401,893
Marketing, general and administrative expenses................... 314,482 358,524 976,706 1,048,052
Other operating income........................................... (8,377) (10,404) (22,916) (20,852)
-------- ---------- ---------- ----------
Operating income.............................................. 93,124 116,202 337,868 374,693
Interest expense................................................. 55,429 59,406 178,532 177,177
Other (income) expense, net...................................... 13,850 (1,359) 19,617 (30,151)
-------- ---------- ---------- ----------
Income before taxes........................................... 23,845 58,155 139,719 227,667
Income tax expense............................................... 8,822 20,354 51,696 79,683
-------- ---------- ---------- ----------
Net income.................................................... $ 15,023 $ 37,801 $ 88,023 $ 147,984
======== ========== ========== ==========
EBITDA margin................................................. 11.4% 12.6% 13.2% 13.2%
===== ===== ===== =====
NET SALES BY REGION
(in millions)
(Unaudited)
Three Months Ended Nine Months Ended
---------------------------------- ----------------------------------
Net Sales August 26, August 27, Percent August 26, August 27, Percent
---------- ---------- -------- ---------- ---------- -------
2001 2000 Change 2001 2000 Change
----- ----- ------ ----- ----- ------
Americas $689.9 $ 802.6 (14.0%) $2,034.2 $2,255.3 (9.8%)
Europe 222.5 235.9 (5.7%) 756.5 817.5 (7.5%)
Asia 71.1 89.2 (20.3%) 233.1 286.4 (18.6%)
Total Company $983.5 $1,127.7 (12.8%) $3,023.8 $3,359.2 (10.0%)
Three Months Ended Nine Months Ended
---------------------------------- ----------------------------------
Net Sales at Prior-Year August 26, August 27, Percent August 26, August 27, Percent
Currency Exchange Rates ---------- ---------- -------- ---------- ---------- -------
2001 2000 Change 2001 2000 Change
----- ----- ------ ----- ----- ------
(Restated) (Restated)
---------- ----------
Americas $ 690.0 $ 802.6 (14.0%) $2,036.8 $2,255.3 (9.7%)
Europe 237.3 235.9 0.6% 812.1 817.5 (0.7%)
Asia 80.1 89.2 (10.3%) 259.9 286.4 (9.2%)
Total Company $1,007.4 $1,127.7 (10.7%) $3,108.8 $3,359.2 (7.5%)
LEVI STRAUSS & CO.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
August 26, Nov. 26,
---------- --------
2001 2000
----- -----
(Unaudited)
ASSETS
------
Cash and cash equivalents............................................................ $ 63,765 $ 117,058
Trade receivables, net............................................................... 576,880 660,128
Total inventories ................................................................... 796,163 652,249
Property, plant and equipment, net................................................... 528,577 574,039
Other assets ........................................................................ 1,172,636 1,202,254
---------- ----------
Total Assets....................................................... $3,138,021 $3,205,728
========== ==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
-------------------------------------
Current maturities of long-term debt and short-term borrowings....................... $ 109,273 $ 231,290
Accounts payable..................................................................... 208,452 268,473
Restructuring reserves............................................................... 53,411 71,595
Long-term debt, less current maturities.............................................. 2,048,677 1,895,140
Long-term employee related benefits.................................................. 392,103 358,849
Post-retirement medical benefits..................................................... 550,331 545,574
Other liabilities.................................................................... 772,045 933,380
---------- ----------
Total liabilities.................................................. 4,134,292 4,304,301
---------- ----------
Total stockholders' deficit........................................ (996,271) (1,098,573)
---------- ----------
Total Liabilities and Stockholders' Deficit........................ $3,138,021 $3,205,728
========== ==========