Levi Strauss Posts 60% Drop in Earnings

Levi Strauss & Co. reported a sharp decline in fiscal third-quarter earnings as lackluster sales in the U.S. and Japan undercut the firm’s turnaround efforts.

The privately held company said net income plunged 60% to $15 million in the quarter ended Aug. 26 from $37.8 million a year earlier. Sales slid 13% to $984 million.

The weak results came as the San Francisco-based firm, which reports earnings because of its corporate debt, faces increased competition from more youth-oriented brands that have sliced into a once-dominant market share.

Chief Executive Phil Marineau said he expects business to stabilize in 2002, with slight growth to follow in 2003.

The company lowered its expectations for sales growth this year but maintained its earnings guidance.