BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Levi Strauss' profitability plunges on declining sales]]>http://www.bloggingstocks.com/2008/07/09/levi-strauss-profitability-plunges-on-declining-sales/http://www.bloggingstocks.com/2008/07/09/levi-strauss-profitability-plunges-on-declining-sales/http://www.bloggingstocks.com/2008/07/09/levi-strauss-profitability-plunges-on-declining-sales/#commentsFiled under: , ,

It's a really bad time to be in low-end apparel. Levis Strauss, which is privately owned but has publicly-traded bonds and therefore reports its earnings, saw its second quarter operating income decline from $118 million to $52 million, driven by an 8% decline in revenue and increased selling, general and administrative costs.

President and CEO John Anderson commented that "The retail environment in the United States remained challenging. . . Increasingly difficult economic conditions in many markets worldwide are impacting consumer spending, but our brands remain strong."

The Wall Street Journal reports (subscription required) that the company's bonds that come due in 2015 have fallen to 95.75 cents on the dollar after 5.5 cent drop in the past week -- the debt carries junk ratings and, given the absolute garbage that's rated investment grade these days, that's saying something.

With all the awful reports coming out on fashion and apparel companies lately -- and the beatings the stocks have taken -- you have to wonder whether they're becoming a good contrarian play. People will buy new clothes eventually, won't they?

Levi Strauss' profitability plunges on declining sales originally appeared on BloggingStocks on Wed, 09 Jul 2008 10:22:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ApparelClothinginthenewsLevis StraussLevisStraussWed, 09 Jul 2008 10:22:00 EST