Gabriella Garr

Gabriella Garr asked about improvements in Levi Strauss & Co.'s supply chain, progress on shortening go-to-market timelines for products, and any additional color on supply chain efficiency beyond AI in corporate settings.

Answer

Michelle Gass, CEO, detailed shortening end-to-end lead times from 16-17 months to 14 months, creating shorter cycle times for products like tops, and increasing globally directed lines from 20% to 50%. Harmit Singh, EVP and Chief Financial and Growth Officer, addressed the U.S. distribution transformation, noting delays due to higher demand but expressing confidence in completion by year-end, citing Europe's successful transition.

Gabriella Garr, representing TD Cowen, asked about improvements in Levi Strauss & Co.'s supply chain, progress in shortening go-to-market timelines for products, and any additional insights on AI as an efficiency driver beyond corporate settings, specifically within the supply chain.

Answer

Michelle Gass, CEO, Levi Strauss & Co., stated that end-to-end lead times have been shortened from 16-17 months to 14 months, with a focus on shorter cycle times for categories like tops and leveraging closer vendors. She also noted increased global consistency in product lines (from 20% to 50% globally directed) and a continued focus on SKU count reduction. Harmit Singh, EVP and Chief Financial and Growth Officer, Levi Strauss & Co., addressed distribution transformation, noting Europe's successful transition and ongoing efforts in the U.S. to complete the hybrid, automated omni-channel model by year-end.