One-glance verdict
Overvalued
$5.45 our estimate vs market $9.33
Wall Street consensus: $19.00 (248.7% higher than our fair-value estimate)
71% above our estimate, beyond the bull case
Fundamentals snapshot
Lands' End, Inc.
LE · NCM · Consumer Cyclical · Apparel Retail
Current price
$9.33
52-week range
$9.24 - $20.04
Market cap
$275.65M
Balance sheet
Stretched
1.21x Concerning
Net debt $60.55M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 97.9% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 5/10 years.
- Reward Trades at 0.8x P/E vs peer median 21.7x (96.3% cheaper).
- Risk Forward P/E (11.0x) is higher than trailing (0.8x) - earnings are expected to drop.
What this company does
Lands' End, Inc.
Lands' End is a clothing company that sells classic apparel, swimwear, and home goods, making most of its money through its website. The company also earns revenue (the total money brought in from sales) by supplying uniforms to businesses and schools and selling through other retailers. This diverse approach helps it reach customers who shop in different ways, both online and in physical stores.
How the company got here
Lands' End was started in 1963 by Gary Comer in Chicago as a mail-order business for sailboat equipment. A funny quirk of its history is the misplaced apostrophe in the name; it was a typo in the first catalog that the company couldn't afford to reprint. The company gradually shifted its focus to clothing and home furnishings, moving to Dodgeville, Wisconsin, in the late 1970s. After becoming a public company in 1986, it was acquired by Sears in 2002, then spun off to become independent again in 2014.
What it actually does
Lands' End is a classic American lifestyle brand that sells casual clothing, swimwear, outerwear, accessories, footwear, and home goods. They are known for their durable, practical, and timeless style for men, women, and children. You can buy their products directly from their website, through their catalogs, or in their own retail stores. They also sell their products through other major retailers like Kohl's and Amazon.
U.S. eCommerce
This is the company's largest business segment, making up the majority of its sales. It involves selling products directly to customers through the landsend.com website in the United States. Think of this as their main online store where shoppers can buy the full range of Lands' End clothing and home goods. Over 90% of the company's total business happens online.
Europe eCommerce
Similar to its U.S. counterpart, this segment handles online sales to customers in European countries like the United Kingdom and Germany. It operates through dedicated international websites. While a smaller portion of the company's total revenue (the money it brings in from sales), it represents their direct-to-consumer business outside of the United States.
Outfitters
This part of the business focuses on selling uniforms and apparel with logos to other businesses and schools. For example, a company might buy branded polo shirts for its employees, or a school might have students order their uniforms through Lands' End. This segment serves clients in industries like banking, travel, and healthcare and accounts for a significant slice of the company's revenue, around 15-20%.
Third Party
This segment includes sales through other major retailers, both online and in physical stores. For instance, when you see Lands' End products for sale at a store like Kohl's or on Amazon, it falls under this category. This strategy allows Lands' End to reach a broader base of customers who may not shop directly on their own website. This is a growing part of their business that helps them acquire new customers with very little investment.
Licensing
In this business line, Lands' End allows other companies to use its brand name on their products in exchange for a fee, known as a royalty. This is part of an "asset-light" strategy, meaning the company can earn money without having to invest in making and storing the products themselves. Recently, Lands' End formed a joint venture with a brand management firm called WHP Global to expand this licensing business globally.
Retail
This is the company's smallest segment and consists of its own physical, company-operated stores. While most of their business is online, these stores provide a place for customers to see and try on products in person. Even though it's a small part of the overall business, the physical stores are still seen as an important way to connect with customers.
What management is betting on now
The company is heavily focused on becoming a more modern, digital, and AI-driven retailer. A key goal is to attract younger shoppers while still serving their loyal, older customer base. They are also pursuing an "asset-light" strategy by expanding partnerships and licensing deals to grow the brand's reach without large upfront costs. This includes a recent joint venture to grow the brand globally through product licensing.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$25.99M
FY2025 Q4
$-27.79M
FY2026 Q2
$-30.75M
FY2026 Q3
$14.05M
FY2026 Q4
$59.52M
FY2027 Q2
$-84.40M
Revenue
$205.12M
Net income
$330.69M
Diluted EPS
10.56
Operating cash flow
$-74.18M
Free cash flow
$-84.40M
Fetching…
Sources
Revenue
$402.31M
Net income
$12.27M
Diluted EPS
0.40
Operating cash flow
$64.80M
Free cash flow
$59.52M
Fetching…
Sources
Revenue
$255.25M
Net income
$-3.67M
Diluted EPS
-0.12
Operating cash flow
$22.93M
Free cash flow
$14.05M
Fetching…
Sources
Revenue
$227.75M
Net income
$-8.26M
Diluted EPS
-0.27
Operating cash flow
$-22.46M
Free cash flow
$-30.75M
Fetching…
Sources
Revenue
$318.63M
Net income
$-593.00K
Diluted EPS
-0.02
Operating cash flow
$-17.12M
Free cash flow
$-27.79M
Fetching…
Sources
Revenue
$317.17M
Net income
$-5.25M
Diluted EPS
-0.17
Operating cash flow
$30.72M
Free cash flow
$25.99M
Fetching…
Sources
Is it cheap or expensive?
Fair value $5.45 vs current price $9.33
Wall Street consensus is the average analyst price target: $19.00 (248.7% higher than our fair-value estimate).
Our most-likely fair value is $5.45 a share — about 41.6% below today's price of $9.33, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $60.6M. Interest coverage 1.2x.
Net debt
$60.55M
Interest coverage
1.21x
Lands' End, Inc.'s profit covers its interest bill about 1.2 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
LE
BASELINE
Lands' End, Inc.
Total debt $76.67M Interest coverage 1.21x This is the baseline the peer rows are being compared against.
Total debt $340.84M Interest coverage 308.17x +25,462% vs LE Carries about 255.6x more debt cushion than LE.
Total debt $141.09M Interest coverage -1.72x -100% vs LE This peer has almost no interest-payment cushion compared with LE.
Total debt $5.00B Interest coverage 3.64x +202% vs LE Carries about 3.0x more debt cushion than LE.
Total debt $1.26B Interest coverage 5.56x +361% vs LE Carries about 4.6x more debt cushion than LE.
Total debt $2.33B Interest coverage 14.50x +1,103% vs LE Carries about 12.0x more debt cushion than LE.
What you should know
The case for and against LE
3 Rewards
1 Risk
Rewards
-
Returns 97.9% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 5/10 years.
-
Trades at 0.8x P/E vs peer median 21.7x (96.3% cheaper).
Risks
-
Forward P/E (11.0x) is higher than trailing (0.8x) - earnings are expected to drop.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
0.81x
Forward P/E
10.98x
P/B
0.57x
P/S
0.21x
EV/EBITDA
4.71x
PEG ratio
0.68x
Profitability
How much profit each dollar creates
Gross margin
48.6%
Operating margin
5.2%
Net margin
26.6%
ROE
97.9%
ROA
3.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.16x
Current ratio
1.58x
Quick ratio
0.20x
Total debt
$76.67M
Total cash
$16.11M
Growth
How the business has been compounding
Revenue TTM
$1.15B
Revenue 5Y CAGR
-5.4%
EPS TTM
11.53
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-37.33M
Free CF TTM
$20.40M
FCF margin
1.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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