If The Jean Fits…

The new girls only jeans for women by Levi's is a strategy hoping to lift sales of its vital European market. Newly opened, the Levi Strauss jeans boutique for young women is a move to divide the sexes gradually in other stores, with many in the planning just for women, and many just for men.

The new store, called Levi's for Girls, is aimed at women ages 19 to 25, though the company acknowledges that the average customer may be more like 15 to 22. Levi Strauss also said it would transform its Paris flagship into a store for men only. This is all part of a plan to have multiple outlets for different corners of the market.

If the idea catches on among Europeans, who are often the motors of fashion trends, it may one date be carried over the United States, where Levi Strauss has been taking a different tack, pushing the less expensive Signature brand, which has taken Levi's into Wal-mart and other discount stores for the first time.

It is all part of a turnaround effort as Levi Strauss struggles in a lukewarm clothing market. Last month the company announced plans to eliminate up to 650 jobs in Europe and the US. On Thursday last week, Levi's said it would close the last three of its Canadian manufacturing plants, which currently employs 1,180 people.

It is true that the big market brands are being pressured by private labels, discounters and a new innovative breed of trendy denim-wear companies. Industry experts so far have reacted warily, but said that in the face of vigorous competition, Levi Strauss had no choice but to innovate.

2 October 2003

Levi's Plans Women's Standalones

Levi's is planning to bring womenswear-only stores to the UK late next year.

Lady Levi's, the brand's new range targeting 15 to 25 year-olds, will launch in the UK for spring 2004.

Levi's is further adding to its 25 UK standalones this week, with opening in Brighton and Camden in North London. They will be run by existing franchisees and will feature the new store fit.

Scott Morrison, UK and Ireland marketing manager, said Levi's stores would demonstrate the brands commitment to womenswear: "the product range is fantastic and we want to develop a great girls-only environment in parallel with it. The stores are likely to be slightly smaller than existing ones, but will communicate to women and draw them in."

A preview of the store environment and the Lady Levi's product will be shown to visitors to The Clothes Show (NEC, December 5-10).

30 July 2003
www.levistrauss.com

Levi's Where's the Hype?

Levi's Type 1 denim has failed to achieve the sales success in the UK as it has in the rest of Europe in its first season. Sales of Type 1 currently represent 11 per cent of the company's total sales, while in Europe it is on the 15 per cent mark.

Launched at the start of this year with a GBP 3m ad and marketing campaign, the hype has yet to make the sales impact UK retailers expected. A post-Christmas national launch and using off-trend fabrics are some of the causes.

The men's jeans market has had an innovative year with brands like Paper Denim, Seven (For All Humanity) and Nudie Jeans using lightweight and new texture denim where as the Levi's use of big stitching was perhaps too basic. One retailer said: "We liked Type 1, we though it was fresh and new, but in hindsight it needed to be fresher, newer and in our stores before Christmas."

For autumn, Levi's are geared to step up its Type 1 retail support with refreshed merchandising and point-of-sale material, at the expense of advertising. There will be new fabrications with a continued use of dark denim.

2 July 2003
www.levistrauss.com

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."

27 June 2003
www.levistrauss.com

Levi's Investigates Fraud Claim

Levi Strauss, the US clothing group, has hired an outside law firm to investigate allegations of tax and accounting irregularities made by two former employees.

The markets regulator, the securities and exchange commission, has also opened an informal inquiry into the claims.

The company's audit committee ordered the investigation after Robert Schmidt and Thomas Walsh filed a lawsuit in April accusing the firm of filing false financial statements since 1997. They claimed they were fired from the company for refusing to conceal the accounting irregularities.

The complaint alleged that a partnership set up in Brazil was an illegal tax shelter, which enabled Levi's to book hundreds of millions of dollars in deductions and income. They claim that two auditors at the accounting firm KPMG who questioned the tax scheme were removed at Levi's request.

Levi's has denied the allegations and countersued the two former employees, accusing them of a "conspiracy" to make "false misleading and defamatory statements" about the company.

4 June 2003
www.levistrauss.com

New Lines for Levi's

Levi's is marking its 150th anniversary with two new lines - Lady Levi's and 100% Jeans - and the relaunch of its 501 range.

Levi's brand president Europe Kenny Wilson said: "We will be showing both the new ranges to retailers for the first time in two weeks. We expect to open new doors with Lady Levi's and there will be opportunity for independents. We will be looking at establishing a 1% share of the jeans market with it in the GBP 30 to 40 price range. The 100% Jeans, however, will retail for GBP 65 to 70."

Among the UK retailers getting a sneak preview of the new Levi's offer was House of Fraser's men's casualwear buyer Nick Preston. He'll be buying into the 100% line, said Preston. "It's fashion-forward but is for people who are maybe interested in Levi's Red but want more of a mainstream interpretation with price points which reflect that."

The 1985 campaign for 501 with Nick Kamen in a laundrette gave Levi's a new lease of life. The planned relaunch for later this year will see the basic design tweaked again for a new consumer.

The last time 501 was reshaped was in 1993. It will now feature a lower front rise, lower back pockets and a straighter leg. A print and outdoor ad campaign will run this autumn, followed by a television campaign next spring.

27 May 2003
www.levistrauss.com

Levi's Launches 'Lady Levi's'

Levi Strauss Europe has confirmed plans it will launch a trousers line for girls by the name of 'Lady Levi's". The Brussels-based European subsidiary of US jeanswear giant Levi Strauss&Co, said the line will first target the European market. The new line is more feminine and elegant than the traditional Levi's pants. "Customarily, the Levi's brand has a rather masculine image. We now plan to specifically target our young female customers," a spokesperson said.

Lady Levi's was developed for girls aged 11 to 19 and 50 per cent of the line will consist of non-denim products. The collection will be available in select clothing stores in Europe from the spring/summer 2004 season. Levi's will also launch a new jeans line by the name of "Levi's 100% Jeans", which will focus on "simplicity" by omitting details such as zips, belt buckles and watch pockets.

May 21, 2003
www.levistrauss.com

Levi's to launch discount line in Europe

US jeanswear giant Levi Strauss&Co has announced plans to launch its Signature discount clothing line in European supermarkets in spring next year. Yhe company said it is set to introduce its this cheaper line onto the shelves of mass channel retailers initially only in the UK, France and Germany. The Signature jeans will sell for about GBP 25, against an average price of GBP 45 for its others.

The move follows its US rollout, where the Signature jeans will be on sale in Wal-Mart from July. According to Levi's, market research showed that fashionable and high quality but moderately priced jeans represented an untapped market. "We will sell the brand where customers really go to shop," Joe Middleton, president of Levi Strauss Europe, said.

The group isn't worried that the new more line may dent the image of its core brand Levi's. "Shoppers will be able to see the difference between Levi's and Levi Strauss Signature at a glance," Mr Middleton stated. Eighteen months ago the San Francisco-based jeans giant won a court battle to prevent UK supermarket group Tesco from selling cut-price Levi's jeans sourced more cheaply from the unapproved "grey market" outside the European Union.

Earlier this week, Levi's revealed it is working on the worldwide roll-out of a new retail concept for girls to compete with companies such as Italian young fashion specialist Miss Sixty. The first store for the new concept, which to date has no name, will open in Paris in August and follows the opening of a test corner at the Paris megastore of French fashion retailer Etam Developpement in March.

San Francisco-based Levi's plans to open a second Levi's girl store by the end of the year to start with the actual roll-out in 2004. According to Levi's France general manager Bernard Didier, there is potential for 30 Levi's girl stores in France alone.

www.levistrauss.com
April 26, 2003

70m expenditures Levi

Jeans giant Levi Strauss & Co on Thursday said it sees capital expenditures of around 70 million USD in fiscal 2003 compared to 59.1 million USD fiscal 2002. Levi Strauss expects to make net cash payments of about 90 million USD to the Internal Revenue Service in its second quarter as a result of a tax settlement.

A spokesman for Levi Strauss added that about 70 million USD of the expected cash requirements are a result of plant closures in fiscal 2002 and other restructuring initiatives.

www.levistrauss.com
February 18, 2003

Celebrities join Levi's in fight against AIDS

Several big name recording artists have joined the Levi's "Staying Alive" Jacket campaign in an effort to raise funds and awareness to combat HIV/AIDS globally. The latest participants in the campaign are Dave Matthews and Michelle Branch. Matthews and Branch join a list of participants that so far includes Sir Elton John and hip-hop artists, Missy "Misdemeanor" Elliott and Wyclef Jean.

Specially designed Levi's jackets from some of these artists as well as a Levi's jacket signed by a host of celebrities (including all of the celebrities mentioned above), are part of a charity auction hosted by online marketplace eBay.
To further raise funds and awareness in the fight against HIV/AIDS, Levi's Jeans created a virtual Levi's "Staying Alive" Jacket on levi.com. For every person who logs on to levi.com through World AIDS Day and pledges to "stay alive" by getting the facts on HIV/AIDS, Levi's Jeans will pledge USD one to PSI's YouthAIDS initiative -- up to USD 50,000. Over 40,000 people have signed the Levi's 'Staying Alive' Jacket since the virtual jacket site was launched on October 7, 2002.
All money raised will benefit Population Services International's (PSI) YouthAIDS program. The jackets will be listed on eBay until December 1, 2002 -- World AIDS Day

www.ebay.com/levis
November 26, 2002

Discount line for struggling Levi’s

Levi Strauss & Co has unveiled a discount clothing line that will be sold by Wal-Mart Stores in the United States as of next year. The new casual clothing brand is called Levi Strauss Signature. Signature jeans, which will be available at the popular American discouter Wal-Mart in July 2003, probably will sell for $23 to $26. That's about 15 percent to 35 percent less than the typical $30 to $35 price for Levi's most popular basic jeans.

For Wal-Mart, Levi's Signature line will be a premium brand. Most Wal-Mart jeans sell for under $20, with some prices falling below $10.

Levi’s was forced to expand beyond the department store business that has generated most of its sales, because American shoppers buy nearly one-third of their clothes at Wal-Mart, Target and other discounters. Levi's wants to sell the Signature clothes in other discounters besides Wal-Mart in the future.

Levi's also plans to sell discount corduroy pants, shirts and jackets under the Signature brand -- the company's first new clothing line since the 1996 launch of Slates slacks. Slates has since been folded into the company's Dockers brand.

Levi's previous refusal to sell its jeans in discount chains contributed to the company's steadily declining sales since 1996. The company is careful because it doesn't want to tarnish the reputation of its higher-priced jeans, some of which sell for more than $200 a pair. Levi's sales this year will total about $4 billion, down from a peak of $7.1 billion six years ago. Speculation goes that if the company had not made this move, Levi’s would be belly-up in three years.

Levi's says the new brand will be as durable as its other clothes but Signature jeans will have a bare-bones look. There won't be any stitching on the back pocket and the label will look prominent by a black Levi Strauss signature instead of the traditional red label.

Levi's isn't budgeting money to advertise the Signature brand and counts on Wal-Mart to handle all promotion.

Levi's has dramatically lowered its costs in recent years by closing most of its domestic plants and shifting production to overseas contractors. The company closed all but two of its remaining U.S. plants earlier this year, laying off 3,600 workers in the process.

November 1, 2002
www.levis.com

Levi museum equals popularity Levi jeans

Several legends surround the creator of the world’s most-famous jeans. But what isn’t well known is the fact that Levi Strauss was born in southern Germany. Now a museum in his birth-place hopes to change that and this week the Levi Strauss Museum Jeans & Cult in the idyllic Buttenheim quietly remembers the 100th birth anniversary of the legendary inventor whose name is almost synonymous with jeans today.

Few know that the man behind the world’s most famous jeans was born in this village in southern Germany between the cities of Bamberg and Nuremberg. Many of the 3,000 inhabitants of upper-Franconian Buttenheim didn't even know their village could lay claim to such a famous son till almost 20 years ago.

In 1983 historians stumbled upon Levi Strauss’ name in the Jewish birth register of the village. Further research led them to Strauss’ home where he spent his first 18 years with his parents and six siblings.

Born in Buttenheim on February 26, 1829, Strauss was the son of a Jewish salesman who sold scarves and other assorted items from door to door. After the death of his father in 1846, Strauss’ mother decided to immigrate to America with her three youngest children. That’s where Levi Strauss invented his iconic blue jeans and the rest, as they say, is history.

Despite having caught on late to the legend of Levi Strauss, the people of the village of Buttenheim have been quick to capitalise on the global popularity of thier most-famous citizen.

In 1987, authorities in Buttenheim decided to preserve the memory of their native son gon global, especially Strauss’ early years spent in their village. They bought Strauss’ crumbling half-timbered family house, restored it and turned it into a museum two years ago.

Visitors to the museum can get a look into the life of Levi Strauss from the time of his birth to his emigration to America.

Die-hard Levis-wearers can educate themselves on the origins of their beloved jeans on a floor dedicated to the world of denim and indigo. Right from Strauss’ early creations of sturdy riveted workpants guaranteed to withstand the most arduous strain to his flagship Levi’s 501 jeans stitched in 1890, the visitor can get a feel of how the world’s most famous jeans came into being.

Besides Levis jeans, the Strauss museum also provides insights into the development of the general denim industry and the techniques involved in dying and treating the material. Undoubtedly the highlight of the exhibition is the "original jeans" from 1890, the legendary 501 from a private collection. Much like Elvis Presley’s house in Graceland, the modest museum in Buttenheim has become a Mecca for the world-wide Levis fan-group. Some 12,000 fans travel here every year to find out more about the history of the jeans gracing their legs. The museum is one of the last remnants from the life of the man who created the greatest icon of American culture. A huge earthquake in 1906 in San Francisco wiped out Levi Strauss’ company and production factories in San Francisco.

www.levis.com
10-01-02

Levi's victorious in legal battle wirh Tesco

Jeans giant Levi’s Strauss & Co has finally won her legal battle of almost four years with Brittains leading supermarket chain Tesco. This week a UK High Court judge, Mr Justice Pumphrey, upheld the decision made by the European Court of Justice in November of last year, which ruled that stores need permission of the trademark owner to buy cheaper goods on the grey market and selling them to the public below regulated prices.

Tesco has been importing cheap 501 jeans from outside the European Union since 1998 and has been selling them at dump prices. Currently the grocery chain sells Levi’s for almost half of the regulated European price.

Tesco’s - along with privately owned discount warehouse group Costco - case concentrated on the claim that Levi's attempts to stop it selling cheap jeans breached the retailers' right to freedom of expression. Judge Pumphrey described these allegations as "devoid of any substance", although he granted the two retailers leave to appeal.

Britains Consumers’ Association backed Tesco in this trial and a spokesman of the organisation declared that “the real loser in this ruling is the costomer”.

Tesco director John Gildersleeve called for the law to be changed and said: "It seems we have run out of legal road" Tesco vowes however, to continue selling cheap jeans from cheaper EU countries.

www.levis.com
21-3-2002

Levi Strauss Quarterly Sales Fall, Net Income Up

Levi Strauss & Co. today announced financial results for the first fiscal quarter ended February 24, 2002. The company continued to make progress in its business turnaround, achieving sales results in line with its expectations, delivering strong margins and enhancing its overall competitiveness.

First-quarter net sales declined 6 percent to $935 million compared to $996 million in the first quarter of 2001. Had currency rates remained constant at 2001 levels, net sales would have declined approximately 4 percent for the period.

"We've had a good start," said chief executive officer Phil Marineau. "We hit the first-quarter operational and financial goals that we set for ourselves. The turnaround is on track. We're seeing growth in Europe and portions of our Asia Pacific business, and continued improvement in our U.S. volumes. We still anticipate some bumps in the road over the coming months, but we expect to stabilize sales worldwide by the end of the year, while continuing to deliver strong performance on our other financial measures."

First-quarter gross profit was $399 million, or 42.6 percent of sales, versus $440 million, or 44.2 percent of sales, in the comparable period of 2001. The 2001 figures include a reversal of workers’ compensation accruals of $8 million. Excluding this adjustment, 2001 gross profit would have been $432 million and gross margin would have been 43.4 percent.

Operating income for the quarter decreased 13 percent to $106 million compared to $121 million in the first quarter of 2001. Excluding last year’s reversal of workers’ compensation accruals, operating income would have been $113 million in the first quarter of 2001, reflecting a year-over-year decline of 6 percent.

EBITDA, which the company defines as operating income excluding depreciation and amortization, decreased 13 percent to $124 million versus $142 million in the first quarter of 2001. EBITDA margin was 13.3 percent compared to 14.2 percent last year. Excluding last year’s reversal of workers’ compensation accruals, EBITDA would have been $134 million in 2001, reflecting a year-over-year decline of 7 percent. EBITDA margin would have been 13.4 percent in 2001.

First-quarter net income rose 47 percent to $44 million from $30 million in the first quarter of 2001. The increase is primarily attributable to lower interest expense and gains from the company’s foreign exchange and interest rate management activities.

Marineau continued, “We have strong product news for the spring season that’s now under way. In the Levi’s® brand, jeans with vintage-inspired finishes and stretch fabrics for women are performing well throughout the world. We’re seeing excellent rates of sale in the U.S. for Levi’s® Flyweight jeans for men, which were featured in our Super Bowl ad, ‘Crazy Legs.’ And in the Dockers® brand, consumers are responding well to the Mobile™ Pant and new styles of Capri pants.”

As of February 24, 2002, total debt stood at $1.96 billion, virtually unchanged from the fiscal year ended November 25, 2001.

Bill Chiasson, chief financial officer, stated, “Our flexible cost structure continues to serve us well. First-quarter gross margins and EBITDA margins came in above our full-year target range, and we continued to reduce operating expenses. Additionally, we ended the first quarter with healthy inventory levels and strong cash flow from operations.”

Levi Strauss & Co. is one of the world’s leading branded apparel companies, marketing its products in more than 100 countries worldwide. The company designs and markets jeans and jeans-related pants, casual and dress pants, shirts, jackets and related accessories for men, women and children under the Levi’s® and Dockers® brands.
www.levis.com
21-3-2002

Levi's profit drops 30 percent, closing facilities

Last November the company axed 140 jobs in its San Francisco headquarters, US jeans giant Levi Strauss & Co. has now announced plans to close production facilities in the US and Europe, as it struggles to get back on track. In the year ended 25 November, Levi saw year-on-year profit decline by 32 per cent to EUR 171 million. Total turnover was down by 8.3 percent to $ 4.26bn.

SAN FRANCISCO January 16, 2002 - Levi Strauss & Co. today announced financial results for the fourth quarter and fiscal year ended November 25, 2001. In the face of weak economies and retail markets, the company ended the year with encouraging fourth-quarter results. The difficult economic environment throughout the year negatively affected full-year sales, but the company continued to improve its competitive position and financial condition.

During the year, the company: Delivered strong gross margins of 42.2 percent and EBITDA margins of 13.1 percent; Reduced operating expenses by 8 percent; Reduced inventory levels by 6 percent; Lowered debt by $168 million; Turned in full-year sales of $4,259 million, down 8.3 percent (or 6.5 percent on a constant currency basis), with fourth-quarter sales declining 4 percent (both reported and constant currency).

"I'm pleased and encouraged with the turnaround progress we're making, particularly in light of the turbulent market this past year," said Philip Marineau, Levi Strauss & Co.'s chief executive officer. "We delivered on our margin goals, cut costs, returned our inventories to healthy levels and brought down debt. Our European business stabilized, experiencing modest growth on a constant currency basis for three consecutive quarters. Except for Japan, where economic conditions continue to deteriorate, our Asia Pacific businesses are growing. "Overall, we have enhanced our competitiveness globally through product innovation, operational improvements, stronger retail customer relationships and more engaging product presentation at retail. We have more work to do to stabilize sales, but we have a very clear strategic plan. We know what we need to do to succeed and we're doing it."

Fourth-quarter results Fourth-quarter net sales declined 4 percent on both a reported and constant currency basis to $1,235 million from $1,286 million in the fourth quarter of 2000. Marineau continued, "Our fourth quarter was particularly encouraging. Our sales trend improved and net income, excluding net restructuring charges, increased 12 percent. Our results were driven by effective promotional programs and strong consumer response to products such as Levi's® Superlow stretch jeans and the Dockers® MobileT pant in the U.S., and Levi's® Red TabT men's and girls' basic jeans in Europe."

Fourth-quarter gross profit was $506 million, or 41.0 percent of sales, versus $553 million, or 43.0 percent of sales, in the comparable period of 2000. While gross margins declined from prior year due to production downtime costs incurred in the fourth quarter of 2001, at 41.0 percent, gross margin remains strong, reflecting lower sourcing and fabric costs, as well as lower inventory markdowns. Operating income for the quarter decreased 14 percent to $141 million compared to $164 million in the fourth quarter of 2000. Operating income excluding net restructuring charges increased 5 percent to $137 million this year from $131 million last year. In the fourth quarter of 2001, the company incurred a restructuring charge of $22 million related to layoffs in its U.S. and Asia Pacific businesses. This was offset by a $26 million reversal of restructuring charges taken in earlier years, resulting in a net benefit of $4 million in the fourth quarter of 2001. In the fourth quarter of 2000, the company reversed $33 million of restructuring charges taken in earlier years. Fourth-quarter EBITDA, which the company defines as operating income excluding depreciation and amortization, was $161 million versus $185 million, while EBITDA margin was 13.1 percent compared to 14.4 percent in the fourth quarter of 2000. EBITDA excluding net restructuring charges was $157 million this year versus $152 million in the fourth quarter of 2000, and resulting EBITDA margin improved to 12.7 percent from 11.8 percent. Net income in the fourth quarter decreased 16 percent to $63 million this year compared to $75 million in 2000. Net income excluding net restructuring charges increased 12 percent to $60 million in 2001 versus $54 million in the 2000 quarter. Fiscal-Year 2001 Results Full-year net sales declined 8.3 percent to $4,259 million from $4,645 million in fiscal 2000. Had currency rates remained constant at 2000 levels, net sales would have declined approximately 6.5 percent for the year.

Gross profit in 2001 was $1,797 million, or 42.2 percent of sales, versus $1,955 million, or 42.1 percent of sales, last year. Lower sourcing and fabric costs, as well as lower inventory markdowns, resulted in strong gross margins in 2001, despite costs associated with production downtime. Full-year operating income was $479 million compared to $539 million in 2000. Operating income excluding net restructuring charges declined 6 percent to $475 million in 2001 versus $506 million in 2000, which is consistent with full-year sales declines. EBITDA was $560 million compared to $630 million last year, while EBITDA margin was 13.1 percent versus 13.6 percent in 2000. EBITDA excluding net restructuring charges was $556 million compared to $597 million last year, and resulting EBITDA margin rose to 13.0 percent in 2001 from 12.8 percent in 2000. Net income in 2001 decreased 32 percent to $151 million compared to $223 million in 2000. Excluding net restructuring charges, and a non-recurring pre-tax gain of $26 million from the sale of real estate in the first quarter of 2000, net income decreased 20 percent to $148 million in 2001 versus $185 million in 2000. As of November 25, 2001, total debt had been reduced during the fiscal year by $168 million to $1.96 billion from $2.13 billion at November 26, 2000. Bill Chiasson, chief financial officer, said, "We continued to strengthen our financial condition in fiscal 2001.

Despite a decline in sales, our gross margins held firm, we lowered expenses and delivered EBITDA margins within our target range. Equally important, bringing inventories down to historical levels in the fourth quarter enabled us to deploy our cash flow toward further debt reduction. During the past two years, total debt has been reduced by more than $700 million. We anticipate EBITDA margins in 2002 to remain strong at about 11-13 percent, and our highest priority for cash flow will be to continue to reduce debt."

2002 Outlook
Looking ahead to 2002, Marineau said, "As our turnaround strategies continue to gain traction, we expect to move closer to stabilization in 2002, with full-year constant currency sales down in the low single digits. We are taking aggressive steps to ensure that we are competitive in today's tough market. That means staying focused on delivering relevant products, continuing to improve our operational capabilities, enhancing our retail relationships and making sure our brands are available to a broad range of consumer markets. "On the operations side, we are discussing with our U.S. unions the possible closure of an undetermined number of U.S. manufacturing plants, which would continue the shift we began several years ago from a manufacturing company to a marketing and product-driven organization.

In Europe, where we operate seven plants, we are beginning consultation with union and employee representatives in Scotland on a proposal to close two high-cost plants in that country, a move that would enable us to reduce our average European production cost. Should we close facilities, we will work closely with our employees, their union representatives and local communities to ease the impact," said Marineau. Levi Strauss & Co. is one of the world's leading branded apparel companies, marketing its products in more than 100 countries worldwide.

The company designs and markets jeans and jeans-related pants, casual and dress pants, shirts, jackets and related accessories for men, women and children under the Levi's® and Dockers® brands. The company's fourth-quarter investor conference call, featuring Philip Marineau, chief executive officer; Bill Chiasson, chief financial officer; and Joe Maurer, treasurer, will be available through a live audio Webcast at www.levistrauss.com on January 16, 2002 at 10 a.m. EST. A replay is available on the Web site the same day beginning at approximately 1 p.m. EST and will remain until January 30, 2002. A telephone replay also is available at (706) 645-9291 from approximately 1 p.m. EST through January 23, 2002.

This news release includes forward-looking statements about retail conditions; sales performance and trends; debt repayment and liquidity; gross margins and EBITDA margins; inventory position and management; possible changes in our manufacturing network; product innovation and new product development in our brands; expense levels including overhead and advertising expense; retail relationships and developments; presentation of product at retail and marketing collaborations; marketing and advertising initiatives; and other matters. We have based these forward-looking statements on our current assumptions, expectations and projections about future events. When used in this discussion, the words "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words.
16-1-2002
www.levis.com

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