Levi Strauss has filed its UK-specific accounts with the year to the end of last November seeing higher sales and pre-tax profits. Turnover rose to £89 million from £77.7 million and pre-tax profit jumped to £7.7 million from £4.3 million.

But the accounts filed at Companies House showed it wasn’t all good news. Net profit for the year dipped to £5.098 million from £5.144 million and the company said that price-conscious consumers impacted its growth trajectory during the 12-month period.

This has continued into 2024. It explained that “traffic has been flattish overall or even in decline during the current year and a consistent trend of bargain hunting is directing price-sensitive customers more to outlets rather than mainline stores.

“Online customers are also more attracted by special offers and the ability to swiftly compare prices across platforms [is] taking a toll on conversion and return rates.

“As inventory levels are however tightening up with less stock available to put on sale we saw promotional activities drying out with favourable impacts on gross margins and bottom line profitability.”

As for the action it’s taking, the company is targeting women more actively with increased investment in marketing, as well as targeting younger demographics.

Levi’s is prioritising “a more dedicated focus on the young and female consumer group with tailored marketing investments [that] will help to achieve [our] goal and are expected to boost the lifestyle perception of the Levi’s brand leading to accelerated growth especially in these two areas”.

As department stores “continue to struggle and lose footprint” it’s expanding its retail link-ups and said that “we aim to expand the customer portfolio towards online and offline retailers targeting the young and cool consumers. Combined with the large footprint of owned and operated stores spread across the country we feel well equipped to serve our target consumer in the near and long-term future.”

But the company said it has faced cost challenges this year, including having to re-route ships away from the Suez Canal towards the much longer route around the Cape of Good Hope. This has increased its lead time by up to three weeks or has required it to air-ship products from Asia to fulfil shipment obligations. It may not mean a competitive disadvantage as the entire market is facing this issue, but it certainly adds to the firm’s costs and that may deter some consumers.