Levi Strauss & Co. is taking proactive steps to navigate global supply chain challenges, including ongoing tariff uncertainty and shipping disruptions. The company reported a 15% increase in inventory at the end of Q2, with about half of that intended to support early holiday demand. This move reflects a broader trend across the retail industry of advancing peak season shipping to mitigate risk.
To address external pressures, Levi’s is using a combination of pricing strategies, vendor negotiations, and diversified sourcing. Executives noted that these efforts are part of a broader transformation to make the company more resilient in the long term.
Key elements of that transformation include a shift to a more direct-to-consumer focus and the consolidation of its distribution center network. Levi’s recently sold a facility in Ohio and announced plans to close another in Kentucky as it moves toward a hybrid model that includes both owned and third-party distribution centers.
These initiatives are yielding results. Levi’s now anticipates a 1% to 2% revenue increase in 2025, an improvement from its earlier forecast of a slight decline. Leaders say the changes position the company to better handle future uncertainty and maintain strong service levels.
