Levi profit more than doubles on tax benefit

Levi Strauss & Co. shook off a sales slowdown in the United States late last year to boost its profit for the ninth straight quarter and cap the jeans maker’s best year in more than a decade.

The San Francisco-based company said Tuesday that it earned $267 million during its fiscal fourth quarter ended Nov. 25, more than double the $96-million profit for the same time in 2006.

Although it’s privately owned by the descendants of its founder, Levi Strauss releases its financial results because some of its debt is publicly traded.

Most of Levi’s fourth-quarter earnings gain stemmed from changes in the company’s tax accounting, driven by its improving performance and revisions made after discussions with the Internal Revenue Service.

Levi would have made more money even without the tax benefits. The company recorded a fourth-quarter operating profit of $190 million, up 12% from $170 million in the comparable 2006 period.

Revenue edged up 2% to $1.3 billion despite a downturn in the United States, where the company continued to struggle with its discount clothing line, Signature. Levi said it planned to introduce new Signature styles this year in an attempt to salvage the 4-year-old brand.

Levi’s sales in North America fell by 2% in the fourth quarter, but problems there were offset in Asia and Europe, where the company benefited from the weak dollar.

For all of fiscal 2007, Levi earned $460 million, its highest annual profit since 1996.