Pioneering American apparel maker Levi Strauss & Co.
(LS&CO.) has jeans in its genes. A global manufacturer of
brand-name clothing, LS&CO. sells jeans and sportswear under
the Levi's, Dockers, Signature by Levi Strauss, and Denizen labels
in more than 110 countries. It also markets men's and women's
underwear and loungewear. The Haas family (descendants of founder
Levi Strauss) controls LS&CO. LS&CO. distributes its brand
products through more than 695 company-operated stores located in
over 30 countries, and through the third-party and first-party
online stores. LS&CO. makes more than 75% of its revenue from
Levi's branded men's pants.
Directly or through third parties, LS&CO. designs, markets,
and sells jeans, casual and dress pants, tops, shorts, skirts,
jackets, footwear, and related accessories for men, women, and
children. Company-operated and online stores generated about 30% of
revenues in fiscal 2016.
LS&CO. distributes its Levi's and Dockers products through
more than 695 company-operated stores located in more than 30
countries, including the US, and through the third-party and
first-party online stores. The company distributes its Levi's and
Dockers products nationwide through chain retailers and department
stores. Outside the US, it distributes products primarily to
department stores, specialty retailers, and approximately 2,200
franchised and other brand-dedicated stores.
By product, LS&CO. generated more than 75% of its total
revenue from men's products during fiscal 2016. Pants made about
75% of total revenue, and the Levis' branded products generated
more than 85% of total revenue.
Iconic LS&CO. sells its products in more than 110 countries.
It operates manufacturing, distribution, and finishing facilities
in the Americas, Europe, and Asia/Pacific regions. The company's
Americas segment contributed about 60% to its total revenue during
fiscal 2016, while its Europe and Asia (which counts the Middle
East and North Africa) segments contributed about 25% and 15%,
respectively. Its key markets are the US, France, Germany, Mexico,
and the UK.
Sales and Marketing
A multi-channel marketer, LS&CO. sells its products in more
than 50,000 retail locations worldwide. Its brands lend themselves
to a variety of retail formats, including chain retailers
(JCPenney, Kohl's, Wal-Mart, and Target), department stores
(Macy's, Nordstrom, and Barney's), and company-operated e-commerce
sites and online stores of other retailers. Sales to its top 10
wholesale customers have accounted for approximately 30% of
The company distributes its products through a wide variety of
retail formats around the world, including chain and department
stores, franchise stores and shop-in-shops, company-operated retail
network, multi-brand specialty stores, mass channel retailers, and
both company-operated and retailer ecommerce sites.
Altogether, LS&CO. spent $284.0 million on advertising in
fiscal 2016, up from $276.4 million the prior fiscal period.
The company's revenue was $4.5 billion during fiscal 2016, up
slightly compared to the prior fiscal year. The small increase was
largely driven by an increase in revenue from Europe. LS&CO.
reported net income of about $291 million for fiscal 2016, which
was a slight spike compared to the $209 million the company
reported for net income in fiscal 2015. The high cost of producing
the goods the company sells, along with its selling, general,
administrative, and interest expenses resulted in LS&CO.'s
modest net income on $4.5 billion in revenue.
LS&CO continued in 2016 to follow a handful of
growth-oriented measures, including: driving profitable growth of
its core men's pants brands (Dockers and Levi's); expanding its
brand reach and diversifying into new or undertapped geographic
markets, including China, India, Russia, and Brazil; becoming
omni-channel through online stores, franchises, and
company-operated stores; and improving its cost structure to ensure
long-term profitable growth.