Levi Strauss Profits Drop 97% in Quarter

Levi Strauss & Co. said Monday that earnings for the fourth quarter plummeted 97%, as expected, from the same period a year ago, bringing full-year net income for 1984 down 79% from 1983.

The San Francisco apparel maker, which disclosed in November that it was anticipating such steep declines, also suffered a drop in sales during the fourth quarter and full year. The company has been troubled by a sharp downturn in sales of jeans and costly restructuring to accommodate the changing apparel market.

“Fourth-quarter operating results were the most disappointing of the year largely because sales were off more than in any other 1984 period,” Robert D. Haas, president and chief executive, said in a statement. “In December, however, our domestic bookings were ahead of the prior year’s level with jeans showing particular vitality.”

For the three months ended Nov. 25, Levi reported net income of $1.7 million, compared to $51.6 million in the same period last year. Sales during the latest quarter totaled $601.1 million, down 15% from last year’s $705 million.

The company said fourth-quarter sales of Levi Strauss USA were down 16% from a year ago; those of Levi Strauss International, down 13%, and those of Battery Street Enterprises, off 12%.

For all of 1984, Levi had net income of $41.4 million, down from $194.5 million the year before. The company incurred non-recurring pretax expenses in 1984 of $75 million from the closing of 20 manufacturing plants, the elimination of 5,000 jobs and its sponsorship of the Summer Olympic Games.

Sales fell 8% to $2.5 billion in 1984 from $2.7 billion in 1983. In the full year, sales of Levi Strauss USA were down 7% and those of Levi Strauss International down 16%, while Battery Street Enterprises enjoyed an 8% gain from a year ago.

Levi had said in mid-November that earnings would be down 97% and sales off 15% in the fourth quarter. It also estimated then that full-year earnings would drop 80%, while sales would be off 8%.