Investing.com -- Levi Strauss & Company saw its earnings for the third quarter surge 15%, as the launch of a new women's denim collection spurred double-digit growth in women's apparel and increases in every region pushed the company's gross margin over 50% for the period.
Consequently, the popular jeans company reported earnings of $58.2 million for the quarter, up from $50.6 million on a year-over-year basis. While Levi's revenue inched down to $1.14 billion from $1.15 billion during the third quarter of 2014, revenues were still up by 7% on a constant currency basis.
In the U.S. the new women's denim line pushed revenues significantly higher, as sales rose by 2.3% to $713 million. With the productive quarter in the U.S., the company halted two straight quarters of domestic losses. Although revenues were down nearly 10% to $258 million in Europe, the company said sales were up 12% when the effects of a stronger dollar were not taken into account. Similarly, Asian sales rose by 9% on a constant currency basis, but fell slightly by one million to $170 million overall.
“In the third quarter, we were encouraged by the initial response to our new product introductions, as well as the continued strength of our international retail business,” said Chip Bergh, Levi Strauss & Company president and chief executive officer. “Although we expect traffic at retail to remain challenging in the fourth quarter, we are confident in our ability to grow full-year sales and adjusted EBIT on a currency-neutral basis.”
Levi's also increased adjusted EBITDA from $119 to $128 million, reflecting higher gross margin and higher constant currency revenue on the period. For the quarter, the company's gross margin increased from 48.7% to 50.2%, underscoring the effects of higher prices in Russia and Mexico.
In addition, the company announced plans to outsource its finance division as part of a larger plan to reduce costs.
In the U.S., shares of Levi Strauss & Co. are privately held by descendants of the family of Levi Strauss.