Levi's reports Q1 revenue increase

Iconic jeans brand Levi's reported a net revenue increase of 4 percent

for the first quarter of 2012. The US jeans and sportswear giant realized a net income of 49 million dollars (over 37 million euros) compared with 41 million dollars (31 million euros) over the same period last year.

Higher net income was a result of revenue growth and lower advertising costs, which were offset by lower gross margins caused by an increase in cotton prices. "We had a good start to the fiscal year. We're pleased with our performance in the first quarter, and we delivered these results despite the pressure of high-priced cotton," said Levi's president and CEO Chip Bergh. The company has had to increase its own prices in response to the rise of cotton costs.

Bergh said that 'conditions remain challenging in some parts of the world'. Net revenues in Europe dropped 7 percent to 289 million dollars (over 220 million euros). The company attributed the decrease to lower volume of sales to both franchisee stores and traditional wholesale channels, as a result of a tough retail environment, particularly in southern Europe. Meanwhile, net revenues were up 9 percent in the Americas and 5 percent in the Asia Pacific region.