Levi Strauss UK posts strong financial performance in 2024

Based on the annual report for the year ended November 30, 2024, Levi Strauss (U.K.) Limited has reported a strong financial performance, with an increase in turnover and a significant rise in profit. The company's strategic report highlights a focus on cost discipline and targeted investments to drive future growth despite ongoing macroeconomic challenges.

For the fiscal year, the company's reported profit after taxation reached 8.9 million pounds, an increase from 5 million pounds in the previous year, while turnover rose to 96.8 million pounds. This was achieved through a rise in commission income and a focus on operational efficiency, including headcount optimization and rent reviews. The company's operating profit grew to 7.8 million pounds, and its net assets increased by over 7.5 million pounds to 28.48 million pounds.

The report also outlines the company's strategic direction. It is placing a strong emphasis on building brand equity through high-profile marketing campaigns, including a new global partnership with brand ambassador Beyoncé. A five-year business plan is underway, focusing on expanding the product portfolio for female and young consumers, elevating product offerings, and increasing near-shore production capabilities. The company is also heavily investing in its e-commerce platform and "Red Tab" loyalty program, which already accounts for over 50 percent of its retail revenues.

Despite this positive outlook, the company acknowledges several key risks, including potential deterioration of consumer confidence due to economic indicators, intense competition in the mature apparel market, and the changing dynamics of wholesaler relationships.