Levi Strauss reports a 77% drop in earnings

Jeans maker Levi Strauss & Co. said fourth-quarter profit fell 77% from the same period a year earlier, when the company enjoyed a tax benefit, as sales growth slowed.

Net income fell to $62.3 million in the three months ended Nov. 30 from $267.1 million a year earlier, the San Francisco company said. Sales including licensing revenue advanced 1.2% to $1.27 billion.

Pretax earnings in the last quarter were 10% higher than a year earlier, when the company recorded a $215-million tax gain, Levi said.

The soft retail market in the U.S. muted gains by the Levi’s brand in Japan, the Asia-Pacific region and the Americas outside the United States, the company said.