Levi's is close to finishing the transition of its warehouse network.

Levi Strauss & Co. plans to reduce the parallel operation of its distribution centers by early 2026, as stated by EVP Harmit Singh during the Q3 earnings call. The company reported a 19.5% increase in distribution costs due to overlapping facilities and reclassified e-commerce expenses. This transition aims to enhance efficiency and flexibility, especially in direct-to-consumer channels, which comprise over 40% of the U.S. market. The restructuring includes moving from owned warehouses to a hybrid model with third-party logistics, under new leadership from Chris Callieri.