LEVI STRAUSS & CO.

ANNOUNCES FIRST-QUARTER 2014 FINANCIAL RESULTS

SAN FRANCISCO (April 8, 2014) Levi Strauss & Co. (LS&Co.) announced financial results today for the
first quarter ended
February 23, 2014.
Highlights include:
Three Months Ended % Increase (Decrease)
($ millions) February 23, 2014 February 24, 2013 As Reported
Net revenues $ 1,130 $ 1,147 (1)%
Net income $ 50 $ 107 (53)%
Adjusted EBIT $ 159 $ 175 (9)%
Net revenues declined one percent on a reported basis and were flat on a constant-currency basis,
reflecting lower sales at
wholesale in the Americas, partially offset by improved performance in Asia and Europe. First quarter
net income declined 53
percent to $50 million, primarily reflecting restructuring and other charges related to the launch of a
global productivity initiative.
Excluding the global productivity initiative charges, adjusted EBIT declined nine percent to $159 million
due to lower gross
margin and higher retail costs.
We knew the first quarter would be challenging, but a heavier promotional environment and unusually
bad weather made it
even more difficult than we expected, said Chip Bergh, president and chief executive officer. While we
anticipate the market
environment to remain challenging for the next few quarters, we are staying focused on whats within
our controlproduct,
commercially-driven marketing, and our cost structureto drive long-term profitable growth.






First-Quarter 2014 Highlights
Gross profit in the first quarter declined to $576 million compared with $592 million for the same
quarter of 2013.
Gross margin for the first quarter was down slightly to 51.0 percent of revenues compared with 51.6
percent of revenues
in the same quarter of 2013. The gross margin decline reflected higher discounted sales and inventory
markdowns as
well as product investment costs.
Selling, general and administrative expenses (SG&A) for the first quarter increased to $425 million from
$410 million
in the same quarter of 2013. The increase in SG&A was primarily driven by the retail network and $6
million in charges,
primarily consulting fees for a centrally-led procurement project, associated with the first phase of a
global productivity
initiative.
Restructuring charges of $58 million were recorded in the first quarter of 2014 associated with the first
phase of a global
productivity initiative, primarily reflecting severance benefit costs associated with anticipated staffing
reductions.
Operating income of $94 million in the first quarter was down from $181 million in the same quarter of
2013 due to
the restructuring charges, higher SG&A and lower gross margin.





Reported regional net revenues and operating income for the quarter were as follows:
Net Revenues Operating Income *
Three Months Ended
% Increase
(Decrease)
Three Months Ended
% Increase
($ millions) (Decrease)
February 23,
2014
February 24,
2013
February 23,
2014
February 24,
2013
Americas $627 $647 (3)% $111 $132 (16)%
Europe $300 $297 1% $71 $63 13%
Asia $203 $203 $47 $49 (4)%
* Note: regional operating income is equal to regional adjusted EBIT.
Net revenues in the Americas were down at wholesale, primarily due to lower sales of womens
products. Retail sales
grew, primarily due to the timing of the Black Friday sales week, which occurred during the companys
first quarter.
Operating income declined due to the regions lower gross margin and net revenues.
Net revenues in Europe grew on a constant-currency basis due to performance and expansion of the
company-operated
retail network. Higher operating income reflected lower SG&A







Cash Flow and Balance Sheet
At February 23, 2014, cash and cash equivalents of $503 million were complemented by $626 million
available under the
company's revolving credit facility, resulting in a total liquidity position of $1.1 billion. Free cash flow for
the first quarter was
$21 million. During the quarter, the company declared a $30 million dividend, which has been paid in
the companys second
fiscal quarter. Net debt at the end of the first quarter remained less than $1.1 billion.
Subsequent to the first quarter end, the company amended and restated its asset-based, senior secured
revolving credit facility,
extending the term, improving availability and obtaining more favorable interest rates and terms.
Investor Conference Call
The companys first-quarter 2014 investor conference call will be available through a live audio webcast
at http://
levistrauss.com/investors/#earnings-webcast today, April 8, 2014, at 1 p.m. Pacific / 4 p.m. Eastern. A
replay is available on
the website the same day and will be archived for one month. A telephone replay also is available
through April 14, 2014, at
800-642-1687.
Forward Looking Statement
This news release contains, in addition to historical information, forward-looking statements within the
meaning of the Private
Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our
current assumptions,
expectations and projections about future events. We use words like believe, will, so we can,
when, 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 Report on
Form 10-K for the
fiscal year 2013 and our Quarterly Report on Form 10-Q for the quarter ended February 23, 2014,
especially in the
Managements Discussion and Analysis of Financial Condition and Results of Operations and Risk
Factors sections. 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 news release may not
occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak
only as of the date
stated, or if no date is stated, as of the date of this news release. We are not under any obligation and
do not intend to make
publicly available any update or other revisions to any of the forward-looking statements contained in
this news release to reflect
circumstances existing after the date of this news release or to reflect the occurrence of future events
even if experience or future
events make it clear that any expected results expressed or implied by those forward-looking
statements will not be realized.





Cash Flow and Balance Sheet
At February 23, 2014, cash and cash equivalents of $503 million were complemented by $626 million
available under the
company's revolving credit facility, resulting in a total liquidity position of $1.1 billion. Free cash flow for
the first quarter was
$21 million. During the quarter, the company declared a $30 million dividend, which has been paid in
the companys second
fiscal quarter. Net debt at the end of the first quarter remained less than $1.1 billion.
Subsequent to the first quarter end, the company amended and restated its asset-based, senior secured
revolving credit facility,
extending the term, improving availability and obtaining more favorable interest rates and terms.
Investor Conference Call
The companys first-quarter 2014 investor conference call will be available through a live audio webcast
at http://
levistrauss.com/investors/#earnings-webcast today, April 8, 2014, at 1 p.m. Pacific / 4 p.m. Eastern. A
replay is available on
the website the same day and will be archived for one month. A telephone replay also is available
through April 14, 2014, at
800-642-1687.
Forward Looking Statement
This news release contains, in addition to historical information, forward-looking statements within the
meaning of the Private
Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our
current assumptions,
expectations and projections about future events. We use words like believe, will, so we can,
when, 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 Report on
Form 10-K for the
fiscal year 2013 and our Quarterly Report on Form 10-Q for the quarter ended February 23, 2014,
especially in the
Managements Discussion and Analysis of Financial Condition and Results of Operations and Risk
Factors sections. 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 news release may not
occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak
only as of the date
stated, or if no date is stated, as of the date of this news release. We are not under any obligation and
do not intend to make
publicly available any update or other revisions to any of the forward-looking statements contained in
this news release to reflect
circumstances existing after the date of this news release or to reflect the occurrence of future events
even if experience or future
events make it clear that any expected results expressed or implied by those forward-looking
statements will not be realized.






SAN FRANCISCO (February 11, 2014) Levi Strauss & Co. (LS&Co.) today announced financial results for
the fourth quarter and fiscal year ended November 24, 2013.

Highlights include:

($ millions) Three Months Ended
Nov. 24, 2013
Three Months Ended
Nov. 25, 2012
Fiscal Year Ended
Nov. 24, 2013
Fiscal Year Ended
Nov. 25, 2012
Net revenues $1,295 $1,297 $4,682 $4,610
Net income $17 $53 $229 $144

Fourth-quarter revenues were flat to prior year on a reported basis, and excluding the impact of
currency,
fourth-quarter net revenues increased slightly. Due to the timing of the companys fiscal year-end, the
Black
Friday sales week occurred after the fourth quarter closed. Fourth-quarter net income declined due to a
slightly lower gross margin, higher seasonal advertising spend and a 2012 tax benefit.

Full-year net revenues increased two percent on a reported and constant currency basis due to
continued
growth in the Americas region and the strength of the Levis Mens business. Despite the lower net
income in
the fourth quarter, full-year net income increased 59 percent reflecting gross margin improvement.

"Overall, we are pleased with the progress we made in 2013. We grew the top- and bottom-line,
generated
significant cash from operations and further strengthened the balance sheet by reducing our debt," said
Chip
Bergh, president and chief executive officer. "These results were despite a challenging fourth quarter, in
part
due to the calendar shift; but also a soft fourth-quarter environment and clearly some challenges in
certain key
international markets and in our U.S. women's business. In 2014 we will continue to focus on growing
the
business over the long term by driving our profitable core business, addressing key opportunities to
build a
more balanced portfolio, and improving our retail operations, while at the same time reducing our
controllable
costs."



Fourth Quarter 2013 Highlights

n
2012. Gross margin for the fourth quarter was 49 percent of net revenues compared with 50 percent of
net revenues in the fourth quarter of 2012. The decline in gross margin reflected an increase in price
promotion and markdown activity, reflecting the slower holiday season and a decline in the Levis
Juniors and Misses businesses at wholesale in the Americas.


compared with $558 million in the same period of 2012, primarily reflecting increased advertising
activities across all markets such as in support of the continued international roll out of our shaping jean
for women, Revel, as well as the global Levis Modern Frontier campaign.

erating income for the fourth quarter declined to $66 million from $91 million for the same period
in
2012, reflecting the lower gross margin and higher advertising.





Fiscal Year 2013 Highlights
compared with $2,199 million in 2012. Gross margin
improved to 50 percent of revenues in 2013 compared to 48 percent in 2012. Gross margin improved
primarily due to the benefit of the lower cost of cotton in the products we sold in the first half of 2013.
Gross margin also improved due to favorable currency effects of approximately $25 million, and an
unfavorable impact of approximately $32 million in customer support and markdown charges taken in
2012 to exit the Denizen brand in Asia Pacific.


The increase in SG&A was driven by higher incentive compensation expense, primarily related to
improved achievement against the company's internally-set objectives. Advertising expenses also
increased, reflecting new campaigns. Retail expenses also increased as we opened new stores. The
increase was partially offset by a decline in distribution expense, reflecting a $19 million facility
impairment charge the company recorded in 2012.


higher gross margin in the Americas and Asia Pacific as described above, as well as favorable currency
impact.




ACHIEVEMENT OF LEVIS COMPANY
CSR/SUSTAINABILITY
Global Citizen Award for Improving Workers Well Being Program from the Silicon
Valley Community Foundation (2013)
San Francisco Business Times Corporate Philanthropy Awards Community
Commitment Award (2012)
Treehugger Best of Green Awards Best Jeans: Levis Water<Less (2011)
GoodGuide Apparel Rankings Levis: Number One in Jeans Category (2011)
San Francisco Business Times Green Business of the Year Award Large Company
(2009)
Catholic Charities CYO Loaves & Fishes Outstanding Corporate Philanthropy Award
(2008)
World Affairs Council of Northern California Award for Corporate Citizenship in a
Global Economy (2005)
The Points of Light Foundation George Bush Corporate Leadership Award &,dash; to
LS&CO. Chairman Robert Haas for his strong commitment to volunteerism, both
through personal example and by sponsoring employee programs (2004)
Ms. Foundation Gloria Corporate Philanthropy Award to the Levi Strauss
Foundation (2004)
San Francisco Beautiful corporate award in recognition of our inaugural Community
Day, held in 2000 (2001)
Council on Economic Priorities corporate social responsibility survey LS&CO. is
ranked first out of 320 companies and assigned an A rating for charitable giving,
disclosure, family benefits, minority advancement, womens advancement and
workplace issues (2000)
Auburn University Quality of Life Award (1997)
The Business Enterprise Trust Lifetime Achievement Award to the Haas family for
providing steadfast social leadership while successfully adapting to the rigors of global
competition (1995)
The Council on Economic Priorities Americas Corporate Conscience Award for
International Commitment (1994)
The White House and Congress honors employees at the Customer Service Center in
Canton, Miss., for their volunteer work in support of children and families in the
Jackson and Canton communities (1994)
Volunteers of America Maud and Ballington Booth Award for Distinguished Service to
Humanity (1993)
Business Ethics magazine Excellence in Ethics award (1993)
Harvard University Dively Award for Corporate Public Initiative (1989)
United Way Alexis De Tocqueville Award to the Haas family for outstanding
achievement in volunteerism (1985)
Lawrence A. Wien Prize in Corporate Social Responsibility (1984)
EQUALITY
Human Rights Campaign Best Places to Work (2014)
The Trevor Project Trevor Hope Award (2010)
California Hall of Fame for History, Women and the Arts Induction to the California
Hall of Fame for embodying the spirit of California (2010)
San Francisco LGBT Community Center Impact Award (2009)
Out & Equal Courage Award (2009)
The Global Business Coalition on HIV/AIDS, Tuberculosis and Malaria Business
Excellent Award Women and Girls Category (2008)
Asian American Legal Center of Southern California Silver Anniversary Award (2008)
InterAction New Visions To End Poverty Certificate of Appreciation (2008)
Human Rights Campaign Corporate Equality Award (2007)
The Business Womens Network Education Foundations first Legacy Award for the
Levi Strauss Foundations support of Project Change, launched in 1991 to fight racial
prejudice and institutional racism in communities where LS&CO. has facilities (2001)
The first Ron Brown Award for Corporate Leadership, presented to LS&CO. for Project
Change, at a White House ceremony conducted by President Clinton (1998)
The Philippines Department of Labor and Employment Most Outstanding Family
Welfare Programs award, in the category of companies with 5001,000 employees
(1994)
Advertising Age magazine declares Levis Women Breaking the Mold ad one of the
most important commercials launched in the past 50 years and says the ad broke new
ground in American advertising by dismantling stereotypes about women (1993)
The Governors Committee Media/Advertising Award from the New York State Office of
Advocates for the Disabled for our positive portrayals of disabled people in the 501
Blues television ads (1985)
HIV/AIDS
India Conference on HIV/AIDS and Insurance Participation in discussions with
USAID, Government of India, non-governmental organizations, insurance industry and
other thought leaders (2011)Kaiser Permanente Red Ribbon Community Service Award
for Improving Access to HIV/AIDS Services (2010)
Ubuntu South African Advertising Award Levi Strauss South Africa Red for Life
Campaign against HIV/AIDS (2010)
Levi Strauss &Co. Koshland Award for Improving Access to HIV/AIDS Services
through Insurance in Mexico; Internal Award, highest LS&CO. Business Achievement
Award (2010)
Corporate Sector on HIV/AIDS Leader 2010 Invited to witness President Obama
signing of National AIDS Strategy (2010)
The Global Business Coalition on HIV/AIDS, Tuberculosis and Malaria Leadership
Award (2009)
Certificate of Appreciation for Significant Contributions to the National AIDS Memorial
Grove (2009)
The Global Business Coalition on HIV/AIDS, Tuberculosis and Malaria Business
Excellence Award Women and Girls Category (2008)
AIDSWALK San Francisco Third-Highest Fund Raising Team (2008)
U.S. Business Roundtable on HIV/AIDS Hosted discussions around U.S. National
AIDS Strategy (2009)
San Francisco AIDS Foundation Leadership Award for more than 25 years of
corporate commitment to the fight against HIV/AIDS (2007)
YouthAIDS Corporate Citizenship Award to LS&CO. and the Levi Strauss Foundation
for 20 years of leadership and support of HIV/AIDS education and prevention programs
(2002)
The Hungarian Salus Puplica Award in recognition of LS&CO.s work on HIV/AIDS
prevention in Hungary (2000)
The Centers for Disease Control Organizational Award for excellence in HIV/AIDS
workplace programs by a large business (1997)
WORKER RIGHTS
HIV/AIDS Employer Roundtable for U.S. Department of Labor Shared best practices
on employer-based HIV/AIDS programs (2011)
India Conference on HIV/AIDS and Insurance Invited panelist and only global
employer to present our Employee HIV/AIDS Benefit Plan: HIV/AIDS and Insurance
(2011)
U.N. Global Compact and the U.N. Millenium Development Goals at University of Notre
Dame Invited panelist to present HIV/AIDS workplace initiatives and insurance
linkages (2011)
Office of National AIDS Policy Private Sector HIV/AIDS Programs Leader, presented
employer HIV/AIDS issues and lessons from Employee HIV/AIDS Program (2010)
World of Work at Global Health Benefits Institute Invited to present Employee
HIV/AIDS Program, ILO Recommendations on HIV/AIDS (2010)
National Business Group on Health Panel Chronic Health Challenges: Global Lessons
Invited panelist to share best practices from Employee HIV/AIDS Program with U.S.
based H.R. leaders (2010)
Global Leadership Platforms on HIV/AIDS Participation in several International
AIDS Conference panels and poster presentations on approaches to address HIV/AIDS
In the Workplace, Improving Access to HIV/AIDS Services for Employees, and
Engaging the Insurance Industry (2010)
Out and Equal Presented overview of workplace HIV/AIDS efforts (2010)
Council on Foundations Invited as panelist to discuss corporate investments in
HIV/AIDS (2010)
Global Business Coalition on HIV/AIDS, Tb, and Malaria Invited panelist: Employee
HIV/AIDS Program Leveraging Workplace to Expand Access to HIV/AIDS Education
and Services (2009)
ILO Negotiation of Recommendations on HIV/AIDS and the World of Work Invited to
represent U.S. Employers (2009)
Global Leadership Platforms on HIV/AIDS Participation in numerous international
AIDS Conference panels and poster presentations on approaches to address HIV/AIDS
In the Workplace, Improving Access to HIV/AIDS Services for Employees, and
Engaging the Insurance Industry (2008)
American Apparel and Footwear Association (AAFA) Excellence in Social Responsibility
Award Creative Programs for the Workplace category, in recognition of LS&Co.s
partnership with the Asia Foundation to improve the lives of migrant women workers in
Chinas Guangdong province (2006)
Childrens Rights Internationals first Leadership in Corporate Responsibility Award, for
LS&COs efforts to combat the use of child labor through the Terms of Engagement
(2005)
The Centers for Disease Control Organizational Award for excellence in HIV/AIDS
workplace programs by a large business (1997)
The Martin Luther King Jr. Center for Nonviolent Social Change Management Social
Responsibility Award in recognition of the unique partnership formed between
LS&CO. and UNITE (Union of Needletrades, Industrial and Textile Employees) (1996)
MARKETING & CREATIVE
One Show Portraits of Braddock Gold Pencil Winner for Documentary (2011)
One Show Portraits of Braddock Merit Winner for Online Branded Entertainment
Campaign (2011)
Magic Best in Show Dockers Visual Display (2010)
Communication Arts Typography Annual The Best Typography of the Year
Dockers Advertising/Print (2010)
ADDY Dockers Newspaper Campaign for Print (2010)
GLAAD Outstanding Advertising Electronic for Levis brand Unbuttoned
campaign, partnership with LOGO (2010)
Out Magazines 4th Annual Power 50 Robert Hanson (2010)
AICP Go Forth: America for Visual Style (2010)
AICP Go Forth: America for Cinematography (2010)
AICP Go Forth: America for Editorial (2010)
Cannes O Pioneers Bronze Film Craft Lion (2010)
Cannes Go Forth Bronze Film Craft Lion for Cinematography (2010)
Effies Go Forth Finalist/TBD (winners announced end of April) (2010)
Communication Arts Advertising Awards Go Forth: America 60 for Television
Commercial (2010)
Roseys Go Forth: America for Television, over $50k production (2010)
Silver ADDY Award Dockers Fit Guide for Dockers.com (2009)
GLAAD 2009 Outstanding Advertising Electronic for Levis brand Change TV ad
(2009)
ADDY Special Judges Award Dockers Fathers Day Campaign for Dockers.com
(2008)
ADDY Gold Award Dockers Web Site (2008)