Lands' End (LE) AI Stock Analysis

• Market Cap: $566.11M
• Dividend Yield: N/A
• Average Volume (3M): 270.01K
• Price to Earnings (P/E): 50.7
• Beta (1Y): 1.25
• Revenue Growth: -8.47%
• EPS Growth: N/A
• Country: US
• Employees: 2,432
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.21
• Shares Outstanding: 30,551,067
• 10 Day Avg. Volume: 133,744
• 30 Day Avg. Volume: 270,014
• PEG Ratio: -0.59
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 25.28
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 0.91
• Enterprise Value/Ebitda: 6.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $20.00 ▲(25.39% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by improving fundamentals (notably a healthier balance sheet and earnings recovery) and supportive technical momentum. It is held back by expensive valuation (high P/E), ongoing revenue pressure and cash-flow consistency concerns, with earnings-call positives and the WHP transaction providing meaningful—but execution-dependent—offsets.

Positive Factors

Stronger Balance Sheet

A much lower debt-to-equity ratio and improved leverage materially raise financial flexibility and reduce interest burden. That stronger capital structure supports investment in e‑commerce and partnerships, lowers refinancing risk, and cushions the business through cyclical retail stress over the next several quarters.

Sustained Gross Margin Expansion

Significant gross margin expansion signals durable pricing power and better product mix or sourcing. Higher gross margins create a buffer against revenue volatility, improve operating profit potential, and support reinvestment in marketing, digital channels, and partnerships without immediate dependence on revenue growth.

Strategic WHP JV Monetization

Selling a stake in IP for $300M is a structural change that delevers the company and pivots Lands' End toward an asset-light, royalty model. This transaction improves near-term liquidity, reduces financial risk, and can free capital to stabilize operations or invest in core DTC and B2B growth initiatives.

Negative Factors

Ongoing Revenue Decline

A shrinking top line erodes operating leverage and leaves earnings sensitive to small cost or sales disruptions. Persistent revenue pressure limits scale benefits, constrains margin expansion durability, and increases dependence on margin improvements or non‑core monetization to sustain earnings over coming quarters.

Weak, Volatile Cash Conversion

Modest free cash flow relative to revenue and volatile operating cash generation reduce predictability for debt paydown, capex, and shareholder returns. If cash conversion variability persists, the company may struggle to consistently fund growth initiatives or absorb shocks without recurring non‑operational financings.

IP JV Governance & Royalty Constraints

Ceding board control of the IP vehicle and entering a long-term royalty license is structural risk: it limits future strategic flexibility, may cap long-term margin upside from owned IP, and concentrates execution risk with WHP’s commercialization choices, affecting durable shareholder economics.

Lands' End Business Overview & Revenue Model

Company Description

Lands' End, Inc. operates as a uni-channel retailer of casual clothing, accessories, footwear, and home products in the United States, Europe, Asia, and internationally. It operates through U.S. eCommerce, Europe eCommerce, Japan eCommerce, Outfitters, Third Party, and Retail segments. The company sells its products online through e-commerce, company operated stores, as well as through third party distribution channels under the Lands' End, Let's Get Comfy, Lands' End Lighthouse, Square Rigger, Squall, Super-T, Drifter, Outrigger, Marinac, Beach Living, as well as Supima, No-Gape, Starfish, Iron Knees, Hyde Park, Year' Rounder, ClassMate, Willis & Geiger, and ThermaCheck brands. As of January 28, 2022, it operated 30 stores. Lands' End, Inc. was founded in 1963 and is headquartered in Dodgeville, Wisconsin.

How the Company Makes Money

Lands' End generates revenue primarily through the sale of apparel and home goods, leveraging a direct-to-consumer model that includes e-commerce, catalogs, and physical retail locations. Key revenue streams include seasonal collections, custom clothing options, and branded merchandise. The company also benefits from strategic partnerships, including collaborations with other brands and retailers, which expand its market reach. Additionally, Lands' End emphasizes customer loyalty programs and personalized marketing strategies to enhance sales and repeat purchases, contributing significantly to its overall earnings.

Lands' End Financial Statement Overview

Summary

Improving profitability and a stronger balance sheet support the score (Income Statement 56; Balance Sheet 74), but it’s capped by continued revenue contraction, thin net margins, and inconsistent cash conversion (Cash Flow 49).

Income Statement

TTM (Trailing-Twelve-Months) profitability has improved meaningfully versus prior years, with solid gross margin (~49%) and positive operating profit, and net income returning to positive territory. However, the top line is still shrinking (TTM revenue down ~8.7% and also down in recent annual periods), and net margin remains thin (~0.9%), leaving earnings sensitive to sales pressure and cost swings.

Balance Sheet

Leverage looks materially better in TTM (Trailing-Twelve-Months), with low debt relative to equity (~0.14x) and positive return on equity (~5%), suggesting a healthier capital structure than the prior two annual reports that showed ~1.1x debt-to-equity. The key watch-out is that this improvement is a sharp shift versus history, so sustaining the lower debt level and protecting equity through the cycle is important.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is positive (operating cash flow ~$50M; free cash flow ~$11M) and free cash flow growth is strong versus the prior period. Still, cash conversion is weak: operating cash flow is low relative to revenue and free cash flow is modest relative to net income, while results have been volatile historically (including a year with negative operating and free cash flow), which lowers confidence in consistency.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	1.31B	1.36B	1.47B	1.56B	1.64B	1.43B
Gross Profit	634.54M	653.35M	625.53M	593.77M	691.46M	605.85M
EBITDA	88.24M	84.71M	-45.06M	63.83M	118.95M	77.69M
Net Income	11.75M	6.23M	-130.68M	-12.53M	33.37M	10.84M
Balance Sheet
Total Assets	852.66M	765.48M	811.48M	1.08B	1.04B	1.05B
Cash, Cash Equivalents and Short-Term Investments	36.34M	16.18M	25.31M	39.56M	34.30M	33.93M
Total Debt	32.90M	262.43M	278.15M	373.76M	292.19M	332.56M
Total Liabilities	621.65M	526.26M	569.89M	701.40M	629.94M	675.80M
Stockholders Equity	231.02M	239.22M	241.59M	380.75M	406.70M	369.70M
Cash Flow
Free Cash Flow	10.60M	15.37M	95.65M	-68.17M	45.33M	61.48M
Operating Cash Flow	50.17M	53.14M	130.56M	-36.37M	70.57M	91.63M
Investing Cash Flow	-36.81M	-35.04M	-34.91M	-29.84M	-25.24M	-30.15M
Financing Cash Flow	-7.59M	-26.59M	-110.11M	73.46M	-45.09M	-103.08M

Lands' End Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LE, the sentiment is Positive. The current price of 15.95 is below the 20-day moving average (MA) of 17.93, below the 50-day MA of 16.13, and above the 200-day MA of 13.78, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 62.24 is Neutral, neither overbought nor oversold. The STOCH value of 82.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LE.

Lands' End Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWMX	71 Outperform	$711.25M	13.59	79.73%	8.47%	-7.03%	1.04%
BBW	70 Outperform	$686.00M	12.18	41.18%	1.52%	6.16%	15.74%
LE	64 Neutral	$566.11M	50.67	5.17%	―	-8.47%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BNED	49 Neutral	$274.70M	-31.36	-3.86%	―	1.38%	63.65%
BBBY	45 Neutral	$347.19M	-1.84	-72.72%	―	-27.23%	62.19%

Lands' End Corporate Events

Lands’ End Forms IPCo, Sells Stake to WHP Global

On January 26, 2026, Lands’ End entered into an agreement to contribute all of its “Lands’ End” brand intellectual property and related licensing assets into a new subsidiary, IPCo, and then sell a 50% controlling stake in IPCo to WHP Global’s subsidiary for $300 million in cash, with the proceeds earmarked in part to repay its outstanding term loan. WHP will also launch a concurrent tender offer to buy up to 2,222,222 Lands’ End shares at $45 per share, potentially taking a roughly 7% equity stake, while the deal structure gives WHP board control over IPCo, sets up detailed governance and exit mechanics tied to WHP Topco monetization events, and locks Lands’ End into a long-term, royalty-bearing exclusive license for its core products in key markets—together signaling a significant balance-sheet deleveraging, a strategic shift to an asset-light, brand-management model, and a tighter alignment with WHP that could reshape economics for shareholders and other stakeholders over time.

The most recent analyst rating on (LE) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Lands’ End stock, see the LE Stock Forecast page.

Lands’ End Forms WHP Global Joint Venture, Delevers Balance Sheet

On January 26, 2026, Lands’ End and brand management firm WHP Global agreed to form a 50/50 joint venture that will house all intellectual property associated with the Lands’ End brand, with WHP paying $300 million in cash for a controlling stake and leading global licensing and brand expansion while Lands’ End continues to operate its existing direct-to-consumer and B2B businesses under a long-term, royalty-bearing license. Lands’ End plans to use the proceeds, including approximately $234 million to fully repay its term loan, to significantly strengthen its balance sheet while retaining economic upside through royalties and potential future participation in WHP Global’s value creation, and WHP will also launch a tender offer of up to $100 million for Lands’ End shares at $45 per share, potentially taking ownership of up to about 7% of the company and aligning the partners’ interests in the brand’s long-term growth and global reach.

The most recent analyst rating on (LE) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Lands’ End stock, see the LE Stock Forecast page.