Third-Quarter Earnings 2016
- October 11, 2016
Our fiscal year ends the last Sunday in November. Each annual report contains an overview of our financial performance, a message from the CEO and highlights of our corporate citizenship initiatives.VIEW ANNUAL REPORTS
• Bank of America Securities / William M. Reuter / 646-855-6363
• Goldman Sachs & Co / Kevin Coyne / 212-357-9918
• JPMorgan / Carla Casella / 212-270-6798
• Wells Fargo Securities LLC / Grant Jordan / 704-715-7022
Financial News & Events
Earnings Webcast & Other Financial Information
Levi Strauss & Co. will issue a quarterly earnings release and host an earnings Webcast in February, April, July and October. Please check back at the beginning of these months for specific dates and times.
The discussion in this conference call, webcast and website may contain, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements relating to our anticipated sales performance and trends; gross margins and operating income margins; cash flows; business strategies and initiatives; and other matters. We have based these forward-looking statements on the assumptions, expectations and projections about future events that we hold at the time the statements are made. We use words like “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.
Investors should consider the information contained in our filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Reports on Form 10-K, especially in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections, our most recent Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Other unknown or unpredictable factors also could have material adverse effects on our future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this conference call, webcast and website may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our beliefs at the time the statements are made.
We do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, nor any other information provided in a conference call, webcast, news release, SEC filing or website.
RETAIL SALES MEASURES
During this call and webcast, you may hear us talk about sell-through numbers or retail sales trends. When we talk about sell-through and retail sales, we are referring to retail over-the-counter dollar sales of our products. We use sell-through data internally as an indicator of consumer demand for our products at retail. We compile sell-through data based on information we receive from a group of our top U.S. retail accounts. Our sell-through methodology may change in the future based on changes in our customer base or channels of distribution. Sell-through dollars do not include taxes and may not be consistently calculated from retailer to retailer including, for example, the treatment of markdowns, coupons and discounts. Other companies may discuss sell-through and could obtain data or compute it differently from us.
We define working capital as the total of accounts receivable and net inventories, less trade accounts payable.
This webcast is on a listen-only basis. This webcast and conference call will be simultaneously recorded and will consist of copyrighted material. You may not record, reproduce, retransmit or rebroadcast these materials or any portion thereof without Levi Strauss & Co.’s express written permission. Your participation represents your consent to these terms and conditions. Participation as a questioner in the conference call constitutes your consent to having any comments or statements you make appear on any transcript or broadcast of this call. These terms and conditions are governed by California law.
QUESTIONS ABOUT THE WEBCAST
For more information about the Webcast, contact Investor-relations@Levi.com.
Unauthorized recording or downloading of this event is not permitted.
NON-GAAP FINANCIAL MEASURES
The Company reports its financial results in conformity with generally accepted accounting principles in the United States (“GAAP”) and the rules of the SEC. However, management believes that certain non-GAAP financial measures provide users of the Company’s financial information with additional useful information. The tables found at the links below include supplemental financial data and corresponding reconciliations to GAAP financial measures. These non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of these items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations and cash flows and should therefore be considered in assessing the Company’s actual financial condition and performance. Non-GAAP financial measures are subject to inherent limitation as they reflect the exercise of judgment by management in determining how they are formulated. Some specific limitations include, but are not limited to, the fact that such non-GAAP financial measures: (a) do not reflect cash outlays for capital expenditures, contractual commitments or liabilities including pension obligations, post-retirement health benefit obligations and income tax liabilities, (b) do not reflect changes in, or cash requirements for, working capital requirements; and (c) they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on indebtedness. Additionally, the methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies, limiting the usefulness of these measures. The Company urges investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in our SEC filings and not to rely on any single financial measure to evaluate its business.
The supplemental financial data is only as of the date issued and readers are cautioned that changes in general economic, business or other conditions or in the business condition, financial results or operations of the Company may have occurred since such date. The Company undertakes no duty to update the information appearing in the supplemental financial measures. Also, subsequent press releases may have been issued, subsequent public conference calls may have been held or documents containing later or additional information may have been filed with the SEC or otherwise become available or come into existence. The Company undertakes no duty to make any such press release, conference call or document or additional information available here, and such information, if it exists, may supersede or contradict these supplemental financial measures. Some of the documents the Company files with the SEC appear elsewhere in this website.
QUARTERLY AND YEAR-END NON-GAAP FINANCIAL MEASURES
OTHER NON-GAAP FINANCIAL MEASURES
We have mechanisms in place intended to ensure family ownership, stable governance and a commitment to responsible commercial success.
Our Board of Directors has four committees: Audit Committee, Finance Committee, Human Resources Committee and Nominating, Governance and Corporate Citizenship Committee. Learn more about our Board committees here.
Our success as a company is built upon an unwavering commitment to responsible business practices. Integrity has always been at the heart of how we operate and is one of LS&Co.’s core corporate values. For more than 155 years, we have demonstrated the highest ethical standards in the conduct of our business.
Our Worldwide Code of Business Conduct reflects our commitment to manage our business affairs responsibly, with the utmost integrity and in compliance with all applicable laws. It offers guidance to our employees on a host of potential business situations and emphasizes the importance of making business decisions through the lens of our values.
The Global Anti-Bribery and Anti-Corruption Policy provides additional, specific guidance on two critical sections of the Worldwide Code of Business Conduct — Compliance with Laws, Rules and Regulations and Government Officials. Recognizing that anti-bribery and anti-corruption laws vary by jurisdiction and are not always easy to understand, our Global Anti-Bribery and Anti-Corruption Policy is designed to help LS&Co. employees worldwide identify and avoid situations that may potentially violate ethics laws.
Compliance with the Worldwide Code of Business Conduct and the Global Anti-Bribery and Anti-Corruption Policy is mandatory for everyone at LS&Co. worldwide — from the back room to the board room. Our Ethics and Compliance Reportline allows LS&Co. employees worldwide to report ethics concerns anonymously, and company policies strictly prohibit retaliation against anyone for raising or helping to address any issue related to the Worldwide Code of Business Conduct or the Global Anti-Bribery and Anti-Corruption Policy.
Although our shares are not registered on a national securities exchange, we do review and take into consideration the director independence criteria required by both the New York Stock Exchange and the Nasdaq Stock Market in determining the independence of our directors. In addition, the charters of our Audit, Human Resources and Nominating and Governance Committees prohibit members from having any relationship that would interfere with the exercise of their independence from management and the company. The fact that a Board member may own stock or voting trust certificates representing stock in the company is not, by itself, considered an “interference” with independence under the committee charters. Family shareholders or other family member directors are not eligible for membership on the Audit Committee.
Q: What is the ownership structure of Levi Strauss?
A: Levi Strauss & Co. is privately held by the descendants of the family of Levi Strauss. Shares of company stock are not publicly traded. Shares of Levi Strauss K.K., the company’s Japanese affiliate, are publicly traded in Japan.
Q: Are any family members actively involved in the day-to-day management of the company?
Q: Why does Levi Strauss file financial statements with the SEC if the company is privately held?
A: We file with the SEC because we have public bondholders.
Q: Where can I get detailed financial information on the company?
A: You can get additional financial information from elsewhere on this site or from the SEC.
Q: What is the company’s governance structure?
A: You can find more information in the Corporate Governance section.
Q: When is the company’s year-end?
A: Our fiscal year ends the last Sunday in November.
Q: How can I invest in the company?
A: You can buy public bonds in Levi Strauss & Co.