Levi's increases its stock levels to manage disruptions caused by tariffs and shipping issues.

Levi Strauss & Co. reported a 15% rise in inventory costs by the end of Q2 due to global supply chain disruptions and U.S. tariff uncertainties, as highlighted by EVP Harmit Singh. The company is implementing strategies like promotion optimization, targeted pricing, and supply chain diversification to mitigate tariff impacts. Approximately half of the increased inventory aims to boost holiday sales, while the rest addresses various market disruptions. Levi’s transformation initiatives, including a shift toward a direct-to-consumer model and consolidation of distribution centers, are expected to enhance operational resilience and service levels moving forward.