American Shuttle Looms

This scan is taken from a 1904 Draper Company publication. The now-famous XX denim used on the original Levi's 501 production were woven on Draper looms at the Amoskeag Manufacturing Co. In fact, Levi Strauss & Co. historian, Lynn Downey, notes that the denim from their "first waist overalls came from the Amoskeag Manufacturing Company in Manchester, New Hampshire, on the East Coast of the United States." ("A Short History of Denim," Downey).

In as early as 1904 the Amoskeag Manufacturing Co. owned 1261 Draper Northrop looms (this does not even include other models of Draper looms Amoskeag had; please note not all Draper looms were used for making denim but to the extent of my research evidence most or even all denim looms at Amoskeag were from Draper who practically had a monopoly in loom-building at the time in America).

Today you can see the Model E at Cone Denim in Greensboro, North Carolina. I have not received full clearance to publish detailed info and media but here's a teaser.





Lynn Downey and LS&CO's "A Short History of Denim" (PDF Alert)

Cone Denim Website

LS&Co Q1

Their spin:

First-quarter results reflect continued improvements in the company’s key operating measures, including net revenues and net income.

Net revenues for the first quarter were $1,037 million compared to $968 million for the same quarter in 2006, a 7 percent increase. Net revenues grew in each of the company’s three regions. The increase primarily reflects growth in the Levi’s brand across all regions due to a higher proportion of premium-priced product sales, strong growth in emerging markets and additional brand-dedicated retail stores. Net revenues also benefited from favorable currency exchange rates.

Net income for the first quarter increased 61 percent to $87 million compared to $54 million in the same quarter of 2006. The improvement reflects an 11 percent increase in operating income, mostly driven by a $25 million benefit-plan curtailment gain related to the closure of a U.S. distribution center, lower interest expense and a lower effective tax rate, partially offset by higher restructuring expenses.

“We're off to a good start this year,” said John Anderson, chief executive officer. “Our sales grew for the second consecutive quarter, reflecting a broad-based improvement worldwide. Our premium products are doing well with consumers in many markets. At the same time, some businesses, including Japan and the U.S. Levi Strauss Signature brand, need considerable improvement. Overall, we made very good progress in the quarter.”

First-Quarter 2007 Results

Gross profit increased 7 percent to $498 million compared to $465 million in the first quarter of 2006. Gross margin was stable at 48.0 percent of net revenues for the first quarter of 2007 compared to 48.1 percent of net revenues in the same period last year.

Selling, general and administrative expenses increased 2 percent to $296 million in the first quarter of 2006 from $291 million in same period of 2006. SG&A as a percent of net revenues was lower at 29 percent compared to 30 percent for the same period last year. Higher SG&A expenses in the 2007 period were primarily attributable to increased selling expense related to new company-operated stores, higher distribution and marketing expenses in line with the improved net revenues for the quarter, and higher corporate expense. These increases were partially offset by the benefit-plan curtailment gain, and lower advertising and promotion expenses.

Operating income for the quarter increased 11 percent to $189 million compared to $171 million for the first quarter of 2006. The increase was primarily driven by the benefit-plan curtailment gain, partially offset by restructuring charges related to a planned distribution center closure in Europe.

Interest expense for the first quarter of 2007 decreased 13 percent to $58 million compared to $66 million in the prior year period. The decrease was primarily attributable to lower average debt balances during the 2007 quarter, reflecting debt refinancing and debt reduction actions taken during 2006.

“We continue to build our financial strength,” said Hans Ploos van Amstel, chief financial officer. “Our margins remained strong and our revenues grew. We are delivering more profit to the bottom line as a result of our lower debt, and lower interest and tax rates. In addition, we will continue to focus on ensuring our cost structure is competitive.”

The company’s first-quarter investor conference call will be available through a live audio Webcast at http://www.levistrauss.com/Financials/EarningsWebcasts.aspx today, April 10, 2007, at 1 p.m. PDT/4 p.m. EDT. A replay is available on the Web site the same day and will be archived for one month. A telephone replay also is available through April 17, 2007, at 800-642-1687 in the United States and Canada, or 706-645-9291 internationally; I.D. No. 4529229.

NYT Scoops Up Levi's Muck

The New York Times today has an article that sheds some more light on Levi's recent litigation to protect its trademarks.

Notable quotes:

The company’s [Levi's] team of denim detectives — there are 40 across the world, scouring boutiques and department stores — has spotted what they considered offending stitches on jeans from the biggest names in the clothing business: Guess, Zegna, Esprit, Lucky Brand and Zumiez, to name a few.

...

But those competitors say the lawsuits are the last resort of a poor loser, a company that has lost billions in sales, laid off thousands of workers and flirted with bankruptcy as the denim industry exploded.

NYT Article

BIG Assurance

Our friends at Blue in Green (BIG), premier denim retailer in NYC, sends denimheads around the globe the following message today.

Hello,

This is an announcement concerning all of our denim products.

All of our denim products imported from Japan or any other country will no longer contain tabs sewn into pocket seams made of any type of material and of any color including leather. They will also be void of any back pocket stitching or leather patches which infringe on trademarks or copywrites registered with the United States government. These three infringements include:

-Any piece of fabric or material sewn between two structural seams of a garment

-Back pocket stitching (arcuate) which could be mistaken for a Levi's arcuate or similar enough to cause confusion

-Leather patch with an image of two horses (and apparently anything else) pulling apart a pair of jeans.

All of the companies we currently sell in our store fully understand this matter and will comply by removing tabs, pocket stitching, and leather patches which infringe on or are too close in similarity to US registered trademarks and copywrites. We are also complying by no longer selling items with these infringements in place.

**All items are now being sold void of these three trademarks and copywrites held by Levi's Strauss and Co.

**We've been in contact with each of the brands we deal with on removing back pocket tabs for future products, either replacing back pocket arcuates with a different design or eliminating the arcuates completely, and in the case of our beloved pigboy champions Studio D'Artisan there will be a re-working of the leather patch due to the current infringement of two pigs pulling apart a pair of jeans.Fortunately what will not change about these products is the most important thing about them and the main reason we wear them and that's the DENIM!

When some denim companies speak of brand identity they rely on exterior flaggings or markings or shapes. In the case of these companies which we support they're identity is their denim. They pour blood, sweat, and tear into producing some of the most unique and revered denim on the planet. When we speak of these brands its usually about the texture, weight, and color of the denim. We're able to identify them just by sight and feel. So while these brands will be void of familiar markings they will still retain the most important aspect of their product and that's the denim.We'll be providing further information and developments as they occur. Thank you for your support in this time of change and transition.

Regards,
Gordon Heffner
Yuji Fukushima
Blue In Green