UPDATE 2-Levi Strauss profit down on costs in Q3

* Profit drops $13 million in third quarter

* Revenue up 7 percent worldwide

(Adds CFO quotes, detail on margins and costs)

SAN FRANCISCO, Oct 12 (BestGrowthStock) – Levi Strauss & Co (LEVST.UL: )
on Tuesday reported lower net profit in its third quarter due to
retail investment and advertising, but revenue rose 7 percent on
the strength of the Levi’s brand in North America.

The global jeans maker has been advertising its recently
launched “Curve ID” line of women’s jeans around the world as well
as a new line of jeans, Denizen, in Asia.

“We’ve clearly been putting a lot of advertising into that
(Curve ID) and that will continue into next year … as we phase
it into the wholesale channel,” Chief Financial Officer Blake
Jorgensen told Reuters.

The company, whose wholesale customers include Macy’s (M.N: ),
JC Penney (JCP.N: ) and Kohl’s (KSS.N: ), has also been spending on
more outlet stores in the United States and Levi’s stores abroad.

The jeans maker posted net profit of $28 million, down from
year-ago profit of $41 million.

Revenue rose 7 percent to $1.11 billion from $1.04 billion a
year earlier, the privately held company said.

“Without job growth we haven’t seen a real strong movement on
the consumer front, but we’re certainly seeing strength in our
core brand: Levi’s,” said Jorgensen.

The company in recent years has been upgrading its core Levi’s
brand with better fits and finishes.

In the Americas region, in which the United States is the
biggest market, revenue rose 9 percent, driven by Levi’s wholesale
sales. That improvement was offset by lower Dockers sales in the
United States, the company said.

Revenue fell 3 percent in Europe, and rose 11 percent in the
Asia Pacific region. On a currency-neutral basis, that
corresponded to a rise of 6 percent and 5 percent, respectively.

Operating income fell 12 percent in the quarter, as selling,
general and administrative costs rose to $457 million from $396
million.

Levi Strauss ended the quarter with 456 company-operated
stores around the world, with a total store count, including
franchise stores, of more than 2,100, Jorgensen said.

Levi Strauss reports results due to its privately held debt.

(Reporting by Alexandria Sage; Editing by Phil Berlowitz)

UPDATE 2-Levi Strauss profit down on costs in Q3