Levi Strauss & Co · NYSE:LEVI
Levi Strauss & — Q3 2006 Earnings Presentation
6 slides from Levi Strauss &'s earnings presentation, Oct 10, 2006
Slide 1: Levi Strauss & Co. Third Quarter 2006
Levi Strauss & Co. Third Quarter 2006 Presented by: Hans Ploos van Amstel Chief Financial Officer October 10, 2006 This presentation should be read in conjunction with Levi Strauss & Co.'s annual report on Form 10-K for the fiscal year ended November 27, 2005 and quarterly reports on Form 10-Q for t
Slide 2: Q3 2006 - Introduction
LS&CO. Q3 2006 - Introduction Net revenues down 2% (-1% including currency impact) Net income up 29% versus Q3 2005 Strong cash flow 1
Slide 3: Q3 2006 - Net Revenues to Net Income
Gross margin healthy at 46% of net revenue SG&A improved while continuing to invest in retail expansion Solid, operating margin at 15% Net income up 29% LS&CO. Q3 2006 - Net Revenues to Net Income 2
Slide 4: Business Unit Performance
North America relatively stable (-1%), retail investments Substantial improvement in Europe Asia Pacific down due to Japan Corporate costs reflect benefit from distribution center changes LS&CO. Q3 2006 - Business Unit Performance 3
Slide 5: Cash Flow
Operating activities: Solid profitability and lower working capital create cash of $171MM Investing activities: Primarily IT systems and retail network Financing activities: Debt repayment and refinancing payments LS&CO. Q3 2006 - Cash Flow 4
Slide 6: Key Conclusions
LS&CO. Q3 2006 - Key Conclusions Third-Quarter Results: Solid profit and cash flow Healthy operating margin Higher net income Improved working capital Lower interest expense and net debt Q4 Outlook: Revenue stability Strong profitability and free cash flow 5