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Ike Boruchal

Managing Director and Senior Equity Consumer Analyst at Wells Fargo & Company/mn

Ike Boruchow is a Managing Director and Senior Equity Consumer Analyst at Wells Fargo, specializing in retailing with a focus on department stores and specialty softlines. He covers a broad roster of companies including Ulta Beauty, Levi Strauss, The RealReal, thredUP, Gap Inc., and several others, with a track record that features a 50% success rate and an average return of 6.7% per rating as measured by TipRanks; his most profitable call generated an 800% return for thredUP. Boruchow began his sell-side career at Morgan Keegan & Co., then served on J.P. Morgan’s top Institutional Investor-ranked specialty retail team, moved to Sterne Agee for over three years, and joined Wells Fargo Securities in 2015. He holds an MBA in finance from the University of Connecticut, a BS in business management from Florida State University, and maintains his standing as a FINRA-registered securities professional with a reputation for excellence in equity research.

Ike Boruchal's questions to LEVI STRAUSS & (LEVI) leadership

Question · Q3 2025

Ike Boruchal focused on Levi Strauss & Co.'s SG&A costs, specifically asking about the distribution line running at 7% of sales, the moving pieces related to warehousing and DCs, and the timeline for margin benefits from these initiatives. He also inquired about a timeline for the company's return to a 15% EBIT margin.

Answer

Harmit Singh, Chief Financial and Growth Officer, explained that Q3 gross margin expansion was driven by structural mix, targeted pricing, higher full-price selling, and FX benefits, offsetting tariff headwinds. Regarding SG&A, he noted that gross profit dollars are growing faster than SG&A dollars. Distribution costs increased due to a reclassification for e-commerce, volume, and parallel DC running during network transformation. He expects parallel DC operations to ramp down by early Q1 2026. Singh outlined the path to 15% EBIT margin through continued gross margin expansion, SG&A leverage, and strategic advertising reinvestment.

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