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2

Levi Strau

SS

& Co. //

2009 Annu

A

l Repo

R

t

Dear Fello

W

S

T

akehol

D

er

S

:

l

ev

I

S

T

rau

SS

& Co. ha

S

al

W

ay

S

embo

DI

e

D

T

he ener

G

y an

D

even

TS

o

F

our

TI

me

S

.

Peo

P

le have

W

orn our

P

ro

D

u

CTS

D

ur

I

n

G

T

he

S

em

I

nal momen

TS

o

F

S

o

CI

al

C

han

G

e

over

T

he

P

a

ST

150 year

S

.

n

o

W

W

e are

I

n

SPI

r

I

n

G

a ne

W

G

enera

TI

on

WIT

h our

PI

oneer

I

n

G

SPI

r

IT

.

We are at a pivotal point in the company’s transformation. As the global leader in jeanswear

and khakiwear, we are deeply proud of our history and heritage as apparel innovators. But

we are not standing still. We have embarked on an ambitious growth strategy that aspires

to create the most innovative and relevant products in the marketplace.

2009 Performan

C

e

Despite the tough economic environment, 2009 was a productive year for Levi Strauss & Co.

Our Levi’s

®

brand grew on a global basis. We also took advantage of the global downturn to

make business investments that strengthen the company and position it for growth.

Here are our 2009 financial highlights:

•

n

et revenue

for 2009 was $4.1 billion, a 7 percent decrease versus the prior year.

•

Gross margin

was 48.1 percent compared with 48.6 percent in 2008.

•

o

perating income

was $378 million compared with $525 million in 2008. Nearly half of

the change was due to the adverse impact of currency fluctuation, and the balance was

due to the net revenue decline and a lower operating margin.

•

n

et income

was $152 million, down from $229 million the previous year, primarily reflect

-

ing the operating income results.

•

Cash flow

from operations improved and we invested in the business, paid a stockholder

dividend and paid down debt.

•

Debt

, less cash at year-end, was $1.58 billion, our lowest year-end net debt level in 13

years. This compares with $1.64 billion at the end of...