One-glance verdict
Overvalued
$6.05 our estimate vs market $13.12
Wall Street consensus: $19.00 (214.2% higher than our fair-value estimate)
117% above our estimate, beyond the bull case
Fundamentals snapshot
Lands' End, Inc.
LE · NCM · Consumer Cyclical · Apparel Retail
Current price
$13.12
52-week range
$9.56 - $20.04
Market cap
$403.32M
Balance sheet
Stretched
1.21x Concerning
Net debt $24.49M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 94.2% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 5/10 years.
- Risk Forward P/E (14.6x) is higher than trailing (1.2x) - earnings are expected to drop.
- Risk Operating margin compressed from 1.6% to -8.7% over 3 years.
What this company does
Lands' End, Inc.
Lands' End is a classic American brand that sells clothing, swimwear, and home goods, making most of its money from online sales through its own website. The company also earns significant revenue from its business division that sells uniforms to schools and companies, and through third-party partners (selling its products in other stores like Kohl's). This is important because having multiple ways to reach customers helps protect the business if sales slow down in any one area.
How the company got here
Lands' End started in 1963 not as a clothing brand, but as a mail-order business for sailboat equipment in Chicago. A typo in the first catalog accidentally misplaced the apostrophe in "Land's End," and the name stuck because the founder, Gary Comer, couldn't afford to reprint it. The company gradually shifted to selling apparel and home goods, building a reputation for quality and customer service through its catalogs. It was acquired by Sears in 2002, which put the brand in many department stores, but later spun off in 2014 to become an independent public company again.
What it actually does
Today, Lands' End is a classic American lifestyle brand that sells casual clothing, swimwear, outerwear, and home furnishings. Think of them as a go-to for well-made, comfortable basics for the whole family, rather than trendy, fast-fashion items. The company is primarily a digital retailer, meaning most of its sales happen online through its website. They also sell through their own physical stores and partner with other major retailers to sell their products.
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. This is their digital storefront where shoppers can buy the full range of clothing and home goods. Because it's a direct-to-consumer channel, Lands' End has more control over the customer experience and pricing.
Outfitters
The Outfitters division is a business-to-business (B2B) operation, which means it sells to other companies and organizations, not individual shoppers. This segment provides uniforms and custom-branded apparel for schools and businesses, including major airlines. This is a significant part of their business, providing a steady stream of revenue (money a company receives from its business activities) through large, often recurring, orders.
Third Party
This part of the business involves selling Lands' End products through other retailers' websites and physical stores. You might see Lands' End items for sale at major department stores like Kohl's or on large online marketplaces like Amazon. This strategy allows Lands' End to reach a wider audience of shoppers who might not visit their own website directly.
Europe eCommerce
Similar to its U.S. eCommerce business, this segment handles online sales to customers in Europe through dedicated international websites. While smaller than the U.S. operation, it represents the company's direct-to-consumer efforts outside of its home market. Germany and the United Kingdom are its largest overseas markets.
Retail
This segment includes the company's own physical stores. These are standalone Lands' End stores where customers can shop for products in person. While online sales are the biggest part of the business, these stores provide a physical presence for the brand and allow customers to see and try on products.
What management is betting on now
Management is focused on being a digitally-led company, leveraging data and online tools to improve the shopping experience and sell higher quality products. They are also expanding through partnerships, selling on more third-party marketplaces to reach new customers with minimal investment. Another key strategy is growing their licensing business, where they partner with other companies to produce and sell new categories of Lands' End branded products, like luggage and kids' footwear.
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 $6.05 vs current price $13.12
Wall Street consensus is the average analyst price target: $19.00 (214.2% higher than our fair-value estimate).
Our most-likely fair value is $6.05 a share — about 53.9% below today's price of $13.12, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $24.5M. Interest coverage 1.2x.
Net debt
$24.49M
Interest coverage
1.21x
Lands' End, Inc.'s profit covers its interest bill about 1.2 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
LE
BASELINE
Lands' End, Inc.
Total debt $47.61M Interest coverage 1.21x This is the baseline the peer rows are being compared against.
Total debt $218.47M Interest coverage 4.92x +308% vs LE Carries about 4.1x more debt cushion than LE.
Total debt $203.83M Interest coverage 3.65x +202% vs LE Carries about 3.0x more debt cushion than LE.
Total debt $575.72M Interest coverage 5.29x +339% vs LE Carries about 4.4x more debt cushion than LE.
What you should know
The case for and against LE
3 Rewards
2 Risks
Rewards
-
Returns 94.2% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 5/10 years.
-
Trades at 1.2x P/E vs peer median 20.5x (94.2% cheaper).
Risks
-
Forward P/E (14.6x) is higher than trailing (1.2x) - earnings are expected to drop.
-
Operating margin compressed from 1.6% to -8.7% over 3 years.
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)
1.19x
Forward P/E
14.58x
P/B
0.81x
P/S
0.31x
EV/EBITDA
6.61x
PEG ratio
0.68x
Profitability
How much profit each dollar creates
Gross margin
47.9%
Operating margin
-8.7%
Net margin
26.2%
ROE
94.2%
ROA
2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.10x
Current ratio
1.57x
Quick ratio
0.23x
Total debt
$47.61M
Total cash
$23.12M
Growth
How the business has been compounding
Revenue TTM
$1.14B
Revenue 5Y CAGR
-5.4%
EPS TTM
11.01
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-2.10M
Free CF TTM
$20.40M
FCF margin
1.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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