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Lands' End (LE)
NASDAQ:LE
Top Page
Lands' End
(NASDAQ:LE)
60Neutral
Lands' End (LE) vs. S&P 500 (SPY)
Market Cap
$317.03M
Dividend YieldN/A
Average Volume (3M)136.49K
Price to Earnings (P/E)51.1
Beta (1Y)1.16
Revenue Growth-3.44%
EPS Growth83.06%
CountryUS
Employees6,400
SectorConsumer Cyclical
Sector Strength49
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)0.20
Shares Outstanding30,929,640
10 Day Avg. Volume157,790
30 Day Avg. Volume136,490
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.22
Price to Cash Flow (P/CF)-4.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.00Price Target Upside46.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Lands' End Business Overview & Revenue Model
Company DescriptionLands' End (LE) is a classic American lifestyle brand that specializes in high-quality apparel and home products. Established in 1963, the company offers a wide range of clothing and accessories for men, women, and children, as well as footwear and home décor items. Known for its commitment to quality, value, and exceptional customer service, Lands' End operates through multiple channels, including e-commerce, direct mail, and retail stores, to cater to a diverse customer base.
How the Company Makes MoneyLands' End generates revenue primarily through the sale of its clothing, footwear, and home products. The company's revenue streams are diversified across its e-commerce platform, direct mail catalogs, and physical retail locations. A significant portion of Lands' End's sales comes from its online business, which allows customers to shop from a wide selection of products. Additionally, the company engages in partnerships with other retailers to expand its reach and increase brand visibility. Factors contributing to Lands' End's earnings include its focus on high-quality, classic designs, strong customer loyalty, and an efficient supply chain that helps manage inventory and reduce costs.
Lands' End Financial Statement Overview
Summary
Lands' End shows resilience in its financial statements with a focus on cash flow improvement and reduced financial leverage. However, declining revenue and persistent net losses indicate challenges in achieving profitability. The balance sheet is stable with improved debt metrics, but the company needs to address its operational inefficiencies to improve its income statement performance. Overall, the company is on a recovery trajectory but faces significant industry headwinds.Income Statement
The income statement shows a declining trend in total revenue over the years, with the most recent TTM (Trailing-Twelve-Months) revenue being $1.44 billion compared to $1.63 billion in 2022. Gross profit margins have slightly improved in the TTM at 44.40%, compared to previous periods. However, the company is experiencing net losses, with a net profit margin of -1.46% in the TTM. EBIT and EBITDA margins indicate operational challenges, with TTM margins at 1.54% and 3.59% respectively. The revenue growth rate in recent years has been negative, reflecting broader challenges in the retail discretionary industry.65
Positive
Balance Sheet
The balance sheet shows a strong equity position with an equity ratio of 26.51% in the TTM. The debt-to-equity ratio has improved significantly from previous years, standing at 0.18 in the TTM, indicating reduced financial leverage and risk. However, return on equity (ROE) is negative at -9.35% due to net losses, which is a concern. Overall, the company has a stable asset base but needs to improve profitability.70
Positive
Cash Flow
Cash flow statements reveal positive operating cash flow in the TTM at $81.69 million, reflecting good cash generation from operations. Free cash flow has also grown to $53.16 million, showing an improvement from previous negative figures. The operating cash flow to net income ratio is strong due to negative net income, highlighting efficient cash flow management despite profitability issues. The company has successfully reduced capital expenditures, helping to boost free cash flow.75
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.44B | 1.47B | 1.56B | 1.64B | 1.43B | 1.45B | Gross Profit |
| 637.38M | 625.53M | 593.77M | 691.46M | 605.85M | 621.89M | EBIT |
| 22.08M | -77.52M | 24.73M | 79.79M | 41.14M | 45.44M | EBITDA |
| 51.53M | -45.06M | 66.92M | 119.58M | 77.69M | 78.48M | Net Income Common Stockholders |
| -20.91M | -130.68M | -12.53M | 33.37M | 10.84M | 19.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 30.40M | 25.31M | 39.56M | 34.30M | 33.93M | 77.15M | Total Assets |
| 843.57M | 811.48M | 1.08B | 1.04B | 1.05B | 1.11B | Total Debt |
| 39.31M | 278.15M | 373.76M | 286.57M | 327.38M | 429.51M | Net Debt |
| 8.91M | 252.83M | 334.21M | 252.27M | 293.44M | 352.36M | Total Liabilities |
| 619.93M | 569.89M | 701.40M | 629.94M | 675.80M | 765.25M | Stockholders Equity |
| 223.64M | 241.59M | 380.75M | 406.70M | 369.70M | 348.38M |
| Cash Flow | Free Cash Flow | ||||
| 53.16M | 95.65M | -68.17M | 45.33M | 61.48M | -11.59M | Operating Cash Flow |
| 81.69M | 130.56M | -36.37M | 70.57M | 91.63M | 27.29M | Investing Cash Flow |
| -28.50M | -34.91M | -29.84M | -25.24M | -30.15M | -37.97M | Financing Cash Flow |
| -59.34M | -110.11M | 73.46M | -45.09M | -103.08M | -105.91M |
Lands' End Technical Analysis
Negative
10.25
Price Trends
11.95
Negative
13.49
Negative
14.49
Negative
Market Momentum
-0.38
Positive
36.95
Neutral
25.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LE, the sentiment is Negative. The current price of 10.25 is below the 20-day moving average (MA) of 11.26, below the 50-day MA of 11.95, and below the 200-day MA of 14.49, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 36.95 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LE.
Lands' End Risk Analysis
Lands' End disclosed 33 risk factors in its most recent earnings report. Lands' End reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lands' End Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.53B | 11.51 | 17.56% | ― | 7.71% | 40.01% | |
74 Outperform | $4.00B | 7.42 | 47.77% | ― | 15.60% | 71.45% | |
67 Neutral | $2.33B | 7.23 | 18.80% | 4.13% | 1.27% | 96.32% | |
66 Neutral | $4.02B | 13.99 | 29.58% | 3.12% | 2.20% | 120.00% | |
60 Neutral | $317.03M | 51.15 | 2.59% | ― | -3.44% | 83.06% | |
59 Neutral | $12.35B | 11.02 | 1.38% | 3.72% | 1.28% | -20.23% | |
57 Neutral | $921.71M | 8.51 | 2.83% | 24.15% | -7.18% | -65.92% |
* Consumer Cyclical Sector Average
Performance Comparison
LE
Lands' End
10.25
1.25
13.89%
ANF
Abercrombie Fitch
79.38
-41.79
-34.49%
AEO
American Eagle
12.12
-11.76
-49.25%
KSS
Kohl's
8.28
-15.78
-65.59%
JWN
Nordstrom
24.35
6.05
33.06%
URBN
Urban Outfitters
49.13
7.03
16.70%
Lands' End Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -10.40% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with significant achievements in gross margin expansion, adjusted EBITDA growth, and successful licensing strategies. However, there are notable challenges such as revenue declines and underperformance in key markets. The positives in strategic initiatives and cost management are somewhat overshadowed by the sales challenges.Highlights
Gross Margin Expansion
Eighth consecutive quarter of gross margin expansion, up approximately 760 basis points year-over-year.
Adjusted EBITDA Growth
Adjusted EBITDA of $44 million, up 38% year-over-year.
Inventory Optimization
12% year-over-year improvement in year-end inventory position, allowing for increased inventory turns by double digits.
Licensing Segment Success
Licensing business created a $150 million plus GMV with strong gross margin and gross profit dollar profiles.
Marketing and Customer Engagement
Doubled Instagram following year-over-year, reaching nearly a quarter of a million followers.
Lowlights
Revenue Decline
Total revenue for the fourth quarter decreased by 14% compared to last year.
European Market Underperformance
European business did not meet expectations with a sales decrease of 22% year-over-year.
U.S. E-commerce Sales Drop
U.S. E-commerce business saw a sales decrease of 19% compared to the fourth quarter of 2023.
Company Guidance
During the Lands' End 4Q Fiscal Year 2024 earnings call, the company provided guidance for the upcoming fiscal year, highlighting expected growth and key financial metrics. For the full year, Lands' End anticipates net revenue between $1.33 billion to $1.45 billion with mid-to-high single-digit growth in Gross Merchandise Value (GMV). They project adjusted net income to range from $15 million to $27 million, translating to adjusted diluted earnings per share of $0.48 to $0.86. The company also expects adjusted EBITDA to be between $95 million and $107 million. Capital expenditures for the year are estimated at approximately $30 million, and the guidance incorporates the impact of existing global tariffs. Additionally, for the first quarter of 2025, net revenue is expected to be between $260 million and $290 million, with GMV anticipated to grow flat to low single digits. The company forecasts an adjusted net loss of $7 million to $4 million, equating to an adjusted diluted loss per share between $0.22 and $0.13, and adjusted EBITDA is expected to be in the range of $9 million to $12 million.Lands' End Corporate Events
Executive/Board Changes
Lands’ End Expands Board, Appoints New Director
Positive
Jan 28, 2025
On January 22, 2025, Lands’ End, Inc. expanded its Board of Directors from six to seven members by appointing Gordon Hartogensis. This strategic move involves Mr. Hartogensis joining both the Compensation Committee and the Audit Committee, aligning with the company’s governance policies, and suggests a strengthening of its leadership team to potentially enhance oversight and strategic decision-making within the company.
Business Operations and Strategy
Lands’ End Highlights Growth Strategies at ICR Conference
Positive
Jan 13, 2025
Lands’ End is participating in the 27th Annual ICR Conference, where it will present its investor presentation focused on strategies for growth and value creation. The company is emphasizing its strategic priorities such as brand building, customer base expansion, and enhanced profitability through a digitally-native and data-driven approach. The announcement highlights Lands’ End’s plans to leverage its strengths, streamline operations, and drive higher quality sales, which are expected to positively impact its market positioning and stakeholder interests.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.