Levi Strauss Loss Narrows

Levi Strauss & Co. on Thursday announced its net loss narrowed in the second quarter compared with a year ago, when it took a sizeable restructuring charge. The weak economy affected sales, the company said.

Levi's, which is privately owned, reports earnings due to its outstanding corporate debt, and reported a net loss of $14.m in the fiscal quarter ended May 25. That compares to a net loss of $75.87 m a year earlier after restructuring charges and related expenses of $171 m.

Net sales at the company, whose bonds tumbled after a wrongful termination lawsuit filed in April that accused Levi Strauss of tax fraud and questionable accounting practices, rose 1 per cent to $930 m. Excluding the benefits from the weaker dollar on sales in the UK and overseas, sales would have fallen 5 per cent.

The company also said total debt at May 25 was $2.31b, compared with $1.85b at the end of the 2002 fiscal year on November 24. Bill Chiasson, chief financial officer stated: "The rise in net debt levels reflects higher inventories associated with seasonal working capital needs and our entry into the mass channel, as well as a scheduled tax payment."