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Lands' End (LE)
NASDAQ:LE
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Lands' End (LE) AI Stock Analysis

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LE

Lands' End

(NASDAQ:LE)

Rating:55Neutral
Price Target:
$13.00
▼(-10.71% Downside)
Lands' End's overall stock score is primarily influenced by its financial performance challenges, including declining revenues and profitability. Technical analysis shows a positive trend, but high valuation metrics suggest caution. The earnings call provides a mixed outlook with both achievements and setbacks.

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

Lands' End Business Overview & Revenue Model

Company DescriptionLands' End (LE) is a renowned American clothing retailer that specializes in high-quality casual and business apparel, outerwear, swimwear, and home products. Founded in 1963, the company operates primarily through its online platform, catalog sales, and a select number of retail stores. Lands' End is known for its commitment to quality, durability, and customer service, targeting a diverse customer base that includes men, women, and children.
How the Company Makes MoneyLands' 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 Earnings Call Summary

Earnings Call Date:Jun 05, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Sep 09, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in licensing revenue, record gross margins, and successful expansion in European e-commerce and B2B outfitters. However, it also reported a decrease in total revenue and a net loss for the quarter, along with challenges in the third-party marketplace business. While there are significant achievements, the financial setbacks suggest a balanced overall performance.
Q1-2025 Updates
Positive Updates
Record Gross Margin Rate
Achieved a record gross margin rate for the quarter at just shy of 51%, 210 basis points greater than last year.
Significant Growth in Licensing Revenue
Licensing revenue increased by over 60% year over year, with new licenses for travel accessories, men's underwear and base layer, and women's intimates.
Expansion in European E-commerce
European e-commerce sales increased 28% year over year, driven by the relaunch of the German and UK websites and marketplace expansion.
Successful B2B Outfitters Performance
B2B outfitters business met revenue and profit objectives, with strong performance in school uniform business and a new partnership with Delta Airlines.
Improved Customer Acquisition and Engagement
Generated nearly 400,000 new SMS marketing subscribers in Q1 and improved customer engagement with a new AI-driven recommendation engine.
Negative Updates
Total Revenue Decrease
Total revenue decreased by 9% compared to last year, and by 4% when excluding the impact of transitioning inventory to licensed skis.
Net Loss for the Quarter
Reported a net loss of $8.3 million or $0.27 per share, with an adjusted net loss of $5.4 million or $0.18 per share.
Challenges in Third-Party Marketplace Business
Gross profit dollars from third-party marketplaces decreased by 11% compared to the first quarter of 2024, with a revenue decrease of 9% year over year.
Company Guidance
During the first quarter 2025 earnings call, Lands' End, Inc. provided guidance for the full fiscal year, projecting total revenue between $1.33 to $1.45 billion and GMV (Gross Merchandise Value) growth in the mid to high single digits. The company expects adjusted net income to range from $15 million to $27 million, with adjusted diluted earnings per share between $0.48 to $0.86. Adjusted EBITDA is anticipated to be between $95 million and $107 million. Capital expenditures for the year are estimated at approximately $25 million. The guidance accounts for tariff impacts, with rates at 30% for China and around 10% for the rest of the world, which the company plans to mitigate. The call highlighted strong performance in licensing, with revenues up over 60% year-on-year, and a focus on expanding their brand through strategic partnerships and digital marketing initiatives.

Lands' End Financial Statement Overview

Summary
Lands' End shows declining revenues and profitability, with a low net profit margin and increasing leverage. Despite some recovery in cash flow and slight profitability improvements, high financial risks persist.
Income Statement
45
Neutral
Lands' End shows a declining gross profit margin, moving from 42.3% to 48.3% in TTM (Trailing-Twelve-Months), indicating some cost control improvements. However, net profit margin remains low at 0.3% in the TTM. Revenue has decreased over the past few years, from $1.64 billion in 2022 to $1.34 billion in TTM, reflecting challenges in maintaining sales growth. The EBIT and EBITDA margins are stable but low, indicating limited profitability.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio has increased, standing at 1.30 in TTM, indicating rising leverage which could pose financial risks. Return on Equity (ROE) improved from negative to 1.9% in TTM, reflecting slight profitability recovery. However, the equity ratio decreased from 39.2% to 30.3%, signaling a higher reliance on debt financing.
Cash Flow
55
Neutral
Free cash flow has shown positive growth, from $61.5 million in 2021 to $17.2 million TTM, indicating some recovery in cash generation despite the challenges. Operating cash flow to net income ratio is high at 12.8, suggesting strong cash generation relative to net income. However, declining operational cash flow from the previous year signals potential cash flow issues.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.34B1.36B1.47B1.56B1.64B1.43B
Gross Profit647.09M653.35M625.53M593.77M691.46M605.85M
EBITDA79.31M84.71M-45.06M66.92M119.58M77.69M
Net Income4.41M6.23M-130.68M-12.53M33.37M10.84M
Balance Sheet
Total Assets760.50M765.48M811.48M1.08B1.04B1.05B
Cash, Cash Equivalents and Short-Term Investments18.14M16.18M25.31M39.56M34.30M33.93M
Total Debt298.62M262.43M278.15M373.76M286.57M327.38M
Total Liabilities530.36M526.26M569.89M701.40M629.94M675.80M
Stockholders Equity230.14M239.22M241.59M380.75M406.70M369.70M
Cash Flow
Free Cash Flow17.18M15.37M95.65M-68.17M45.33M61.48M
Operating Cash Flow56.49M53.14M130.56M-36.37M70.57M91.63M
Investing Cash Flow-36.59M-35.04M-34.91M-29.84M-25.24M-30.15M
Financing Cash Flow-29.13M-26.59M-110.11M73.46M-45.09M-103.08M

Lands' End Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.56
Price Trends
50DMA
12.04
Positive
100DMA
10.41
Positive
200DMA
11.69
Positive
Market Momentum
MACD
0.52
Negative
RSI
71.49
Negative
STOCH
81.11
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 14.56 is above the 20-day moving average (MA) of 13.03, above the 50-day MA of 12.04, and above the 200-day MA of 11.69, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 71.49 is Negative, neither overbought nor oversold. The STOCH value of 81.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$1.09B-176.82%-13.22%
61
Neutral
$17.78B13.97-5.40%3.03%1.50%-15.71%
55
Neutral
$422.35M106.831.90%-7.58%
50
Neutral
$296.61M-36.88%1.38%63.65%
47
Neutral
$359.13M-42.08%-8.53%-2070.29%
46
Neutral
$591.32M11.13-2.81%-5.78%-158.53%
41
Neutral
$198.78M-10.81%-100.00%93.34%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LE
Lands' End
14.56
-0.93
-6.00%
FLWS
1-800 Flowers
5.60
-2.31
-29.20%
HZO
Marinemax
27.21
-4.06
-12.98%
BNED
Barnes & Noble Education
8.59
-4.41
-33.92%
JMIA
Jumia Technologies AG
9.13
4.33
90.21%
LOGC
ContextLogic
7.35
1.92
35.36%

Lands' End Corporate Events

Executive/Board ChangesShareholder Meetings
Lands’ End Appoints New Board Members at Annual Meeting
Positive
May 21, 2025

On May 21, 2025, Lands’ End, Inc. held its Annual Meeting of Stockholders where several key decisions were made. The election of directors resulted in the appointment of Robert Galvin, Gordon Hartogensis, Elizabeth Leykum, Josephine Linden, John T. McClain, Andrew J. McLean, and Alicia Parker to the Board of Directors. Additionally, stockholders approved the compensation of the company’s named executive officers and ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for fiscal year 2025. These decisions are expected to influence the company’s governance and financial oversight positively.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 20, 2025