Levi Strauss ends Q3 with $904 million liquidity, $382 million cash

By Lisa Kerner

Charlotte, N.C., Oct. 4 - Levi Strauss & Co. reported cash and cash equivalents of $382 million and $522 million available under its revolving credit facility for total liquidity of $904 million at the end of the fiscal third quarter ended Aug. 25.

The San Francisco-based apparel maker ended the quarter with net debt of less than $1.2 billion, down from more than $1.4 billion for the same period last year, said executive vice president and chief financial officer Harmit Singh during the company's earnings conference call on Friday.

"We continue to focus on strengthening our balance sheet as reflected by our overall liquidity position, lower net debt and reduced leverage. Cash flow remains solid. Free cash flow for the first nine months of 2013 was $183 million as compared to $345 million in the same period last year," said Singh.

Singh also highlighted other fiscal third-quarter results, as compared to the prior-year period. Consolidated net revenues were up 4% at $1.1 billion, net revenues were up 3% overall, operating income was up 36% at $180 million, and operating margin was 10% versus 8%.

Levi Strauss' net income more than doubled to $57 million. Gross profit rose 10% to $573 million, with the increase attributed to higher gross margin, which was up 290 basis points.

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