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Levi Strauss & Co. is permanently closing a distribution center in Hebron, Kentucky, impacting nearly 350 workers.
Layoffs are expected to begin around Aug. 18, according to Worker Adjustment and Retraining Notification Act paperwork. Some employees will be able to apply for a job at another location, according to Emily Knoles, associate general counsel for Levi Strauss & Co.
Levi’s changed its distribution strategy last year from an owned and operated model to a mix of owned and third-party operated distribution centers. Those centers are used to warehouse and ship products to the brand’s wholesale customers, stores and e-commerce shoppers, according to paperwork filed with the U.S. Securities and Exchange Commission.
The distribution center in Hebron was owned by the company. Levi’s last June entered into an agreement with a third-party logistics provider to replace its owned Canton, Mississippi, distribution center with a new one. During fiscal 2024, Levi’s entered into a lease agreement with a third-party logistics provider to operate a distribution center in Ohio.
In its latest earnings, Levi reported $1.5 billion in net revenue, up 3% year over year. Net income was $140 million, up from a nearly $10 million loss in the year-ago quarter.
“The Levi’s brand is stronger than ever, and we will continue to fuel this momentum through a robust product pipeline and by keeping the brand firmly at the center of culture across the globe,” Michelle Gass, CEO of Levi Strauss & Co, said in a statement to analysts in Q1. “While we recognize that we are operating in an uncertain environment, our global footprint, strong margin structure, and agile supply chain position us to navigate the balance of the year and beyond.”
The company will announce its second quarter results on Thursday.
Levi Strauss announced this spring it agreed to sell Dockers to Authentic Brands Group for $311 million. The deal has the potential to reach up to $391 million based on the performance of Dockers under Authentic.
Editor’s note: This story first appeared in the Retail Dive: Operations newsletter. You can sign up for it here.