Levi’s nears completion of warehouse network transition

Group 1 - Levi's is restructuring its distribution network from primarily owned warehouses to a hybrid model that includes both owned and leased facilities operated by third-party logistics providers [3] - The company has closed an owned facility in Kentucky and established agreements with third-party logistics providers for new distribution centers in Canton, Mississippi, and Groveport, Ohio, with the Mississippi site replacing an owned facility [4] - The transformation aims to enhance service to direct-to-consumer channels, which account for over 40% of the U.S. market, and is expected to reduce distribution expenses and costs per unit [5] Group 2 - Levi Strauss & Co. plans to phase out the parallel operation of owned and leased distribution centers by early 2026, as stated by the EVP and Chief Financial and Growth Officer during the Q3 earnings call [8] - The company reported a 19.5% year-over-year increase in distribution costs for the quarter, attributed to charges from overlapping facilities and reclassification of certain e-commerce costs [8] - The company anticipates that costs will decline over time as the transition is completed, leading to greater efficiency and flexibility in serving both direct-to-consumer and wholesale channels [8]