Denim maker Levi Strauss & Co has reported an improvement in its full year 2005 results. Net sales for the year, ended 27 November, improved by $53 million (£30.5 million), while operating income rose to $228 million. Gross profit increased $104 million to $1.9 billion. Net income for the year rose dramatically from $30 million in 2004 to $156 million, thanks largely to a higher operating income.

"We accomplished our primary objectives," said chief executive Phil Marineau in a statement. "We substantially improved the company's profitability and ended an eight-year sales decline." He did say that the company was cautious about 2006 "given the ongoing uncertainty of the retail marketplace in the United States and Europe", but added that he was "encouraged by our prospects given the innovative and highly competitive products that we have in the pipeline."

Fourth quarter net sales remained flat at $1.16 billion, while gross profit for the quarter increased $3 million to $510 million, or 44.1 of net sales. Net income rose from a loss of $19 million in the same quarter the year before to $44 million. It was driven largely by a higher operating income, lower foreign exchange management contract losses and lower income tax expense.