Lands' End (LE) AI Stock Analysis

Compare

268 Followers

LE Dividends

Top Page

Lands' End

(NASDAQ:LE)

49Neutral

Lands' End is experiencing mixed financial performance with notable challenges in revenue growth and high leverage, despite some operational improvements and strong cash flow. Technical indicators signal a bearish outlook, and the high P/E ratio suggests potential overvaluation. While strategic initiatives show potential, they are currently overshadowed by sales declines, impacting the overall stock score negatively.

Lands' End (LE) vs. S&P 500 (SPY)

Market Cap

$269.90M

Dividend YieldN/A

Average Volume (3M)163.54K

Price to Earnings (P/E)43.6

Beta (1Y)0.79

Revenue Growth-7.44%

EPS GrowthN/A

CountryUS

Employees2,432

SectorConsumer Cyclical

Sector Strength67

IndustrySpecialty Retail

Share Statistics

EPS (TTM)0.20

Shares Outstanding30,881,428

10 Day Avg. Volume141,893

30 Day Avg. Volume163,540

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.35

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit-0.90

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$15.00

Price Target Upside67.97% 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 faces challenges with fluctuating profit margins and revenue declines. However, improvements in EBIT and EBITDA margins and positive cash flow generation provide some stability. The balance sheet shows high leverage but with recent improvement.

Income Statement

Neutral

The gross profit margin and net profit margin have seen significant fluctuations, with a concerning negative gross profit in the latest period. Revenue has declined year-over-year, indicating potential challenges in sales growth. However, the company showed improvement in EBIT and EBITDA margins in the most recent year, suggesting some operational efficiencies.

Balance Sheet

Neutral

The debt-to-equity ratio has improved, reflecting a reduction in leverage, but remains relatively high. Stockholders' equity has decreased over time, impacting the equity ratio negatively. The return on equity has also been volatile, indicating inconsistent profitability.

Cash Flow

Neutral

Operating cash flow has been positive, with a notable recovery in the latest period. The free cash flow growth rate is positive, suggesting better cash management. However, the operating cash flow to net income ratio indicates potential profitability issues as operating cash flow exceeds net income.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
7.14M	1.47B	1.56B	1.64B	1.43B
	Gross Profit
-702.45M	625.53M	593.77M	691.46M	605.85M
	EBIT
50.96M	-77.52M	24.73M	79.79M	41.14M
	EBITDA
84.71M	-45.06M	66.92M	119.58M	77.69M
	Net Income Common Stockholders
6.23M	-130.68M	-12.53M	33.37M	10.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.18M	25.31M	39.56M	34.30M	33.93M
	Total Assets
765.48M	811.48M	1.08B	1.04B	1.05B
	Total Debt
37.54M	278.15M	373.76M	286.57M	327.38M
	Net Debt
21.36M	252.83M	334.21M	252.27M	293.44M
	Total Liabilities
526.26M	569.89M	701.40M	629.94M	675.80M
	Stockholders Equity
239.22M	241.59M	380.75M	406.70M	369.70M
Cash Flow		Free Cash Flow
15.37M	95.65M	-68.17M	45.33M	61.48M
	Operating Cash Flow
53.14M	130.56M	-36.37M	70.57M	91.63M
	Investing Cash Flow
-35.04M	-34.91M	-29.84M	-25.24M	-30.15M
	Financing Cash Flow
-26.59M	-110.11M	73.46M	-45.09M	-103.08M

Lands' End Technical Analysis

Technical Analysis Sentiment

Negative

Last Price8.93

Price Trends

50DMA

10.33

Negative

100DMA

11.78

Negative

200DMA

13.92

Negative

Market Momentum

MACD

-0.49

Negative

RSI

43.66

Neutral

STOCH

51.55

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 8.93 is below the 20-day moving average (MA) of 9.06, below the 50-day MA of 10.33, and below the 200-day MA of 13.92, indicating a bearish trend. The MACD of -0.49 indicates Negative momentum. The RSI at 43.66 is Neutral, neither overbought nor oversold. The STOCH value of 51.55 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HZO	63 Neutral	$487.02M	9.24	5.91%	―	-0.24%	-10.33%
Sector *	60 Neutral	$6.86B	11.74	3.14%	4.15%	2.37%	-21.95%
BNED	50 Neutral	$353.14M	―	-36.88%	―	1.38%	63.65%
LE	49 Neutral	$269.90M	43.61	2.59%	―	-7.44%	―
FLWS	46 Neutral	$344.72M	―	-1.52%	―	-7.84%	88.34%
JMIA	46 Neutral	$291.46M	―	-127.01%	―	-15.87%	―
LOGC	34 Underperform	$187.35M	―	-40.76%	―	-84.75%	77.25%

* Consumer Cyclical Sector Average

Performance Comparison

Lands' End

8.88

-4.69

-34.56%

FLWS

1-800 Flowers

5.53

-3.53

-38.96%

HZO

Marinemax

21.46

-3.05

-12.44%

BNED

Barnes & Noble Education

10.60

10.39

4947.62%

JMIA

Jumia Technologies AG

2.45

-2.04

-45.43%

LOGC

ContextLogic

7.14

1.51

26.82%

Lands' End Earnings Call Summary

Earnings Call Date:Mar 20, 2025

(Q4-2024)

% Change Since: -21.94%|

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.

Q4-2024 Updates

Positive Updates

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.

Negative Updates

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 ChangesBusiness Operations and Strategy

Lands’ End Secures Key Executives with Retention Agreements

Neutral

Apr 11, 2025

On April 7, 2025, Lands’ End, Inc. entered into retention agreements with key executives, including CEO Andrew J. McLean, CFO Bernard McCracken, and President Peter L. Gray, to ensure their continued employment through a potential change in control or until September 7, 2025. These agreements, which include significant cash payments, are designed to maintain leadership stability and potentially enhance the company’s strategic positioning during a period of transition.

Spark’s Take on LE Stock

According to Spark, TipRanks’ AI Analyst, LE is a Neutral.

Lands’ End’s overall score reflects mixed financial performance with operational improvements but significant revenue declines. Weak technical indicators and high valuation limit its attractiveness. Positive corporate events and strategic initiatives are overshadowed by market challenges.

To see Spark’s full report on LE stock, click here.

Executive/Board ChangesBusiness Operations and Strategy

Lands’ End Updates CFO Severance Agreement

Neutral

Mar 14, 2025

On March 11, 2025, Lands’ End, Inc. and its Chief Financial Officer, Bernard McCracken, entered into an Amended and Restated Executive Severance Agreement. This agreement outlines the terms of severance if Mr. McCracken’s employment is terminated without cause or for good reason, including financial compensation, health insurance continuation, and outplacement services. It also includes non-competition, non-solicitation, non-disparagement, and confidentiality covenants, impacting the company’s operational continuity and executive management stability.

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.