Levi Strauss & Co LEVST.UL saw quarterly profit fall by nearly half as price rises were not enough to offset cotton costs, and the jeans maker also had to discount to keep up with competition.

For the fourth quarter ended November 27, the company made $44 million, down from the $86 million it made in the same quarter the year before.

It also saw a $32 million increase in income tax expense.

Revenue grew 4 percent to $1.34 billion.

Levi Strauss is a private company, but reports quarterly results because it has publicly held debt.

It ended the fiscal year with net debt of $1.8 billion compared with $1.6 billion at the end of 2010.

(Reporting by Nivedita Bhattacharjee in Chicago; Editing by Gerald E. McCormick)