Lands’ End, Inc. (NASDAQ: LE)
Falling And Can It Ever Get Back Up?
Shares of Lands End reported earnings this morning that missed analyst estimates and sent its shares down $1.31 or 4.56% in regular session trading on Thursday June 4th on high relative volume. Lands End is an American company based in Wisconsin that specializes in casual clothing, luggage and some home furnishings with the majority of its sales coming through mail order and the internet, unlike some of the other popular retail names you may be familiar with.
Today’s decline of 4.56% is in addition to Lands’ End falling nearly 50% since the beginning of 2015. The Dodgeville, WI-based company reported first quarter net income of $1.7 million, or 5 cents per diluted share, well below the 34 cents per share the company earned during the same period last year. One may look at these results and wonder if this is the beginning of the end for Lands’ End as a stand-alone retailer. Some reasons stated were the strong dollar and a weak consumer demand. At the helm of the company is a newly appointed CEO who in her past has held high capacities at sports car maker Ferrari and the high-fashion cologne and clothing manufacturer, Dolce & Gabbana. Federica Marchionni is 43 years old and stated, “I always made any company succeed and actually even more than succeed from the expectation,” She will have to deal with something serious that occurred in March whereby the company’s children’s sleepwear failed federal standards over flammability regulations frightening parents over purchasing these items. Before the beginning of this year Lands’ End shareholders had a lot to be happy and smile about. The stock rose steadily through the end of December 2014 going from roughly $26 to a high of $56. Lands’ End hasn’t always been a poor investment. It will be interesting to see what Federica Marchionni can do to reestablish its position in the retailer category and possibly bring an end to the bleed in share price.
Please see below the chart of Lands’ End on a weekly basis from early May to the present. Please note the uptrend channel that it held up until roughly mid to end of January where it broke its support level with a long range red bar. This means massive selling by shareholders, mutual funds and hedge funds alike. While earnings were terrible and the chart looks horrendous, it does not mean Lands’ End cannot rise from the dead under new leadership who has roots in high powered names like Ferrari and Dolce & Gabbana.
About Lands’ End, Inc.
Lands’ End, Inc., is a leading multi-channel retailer of casual clothing, accessories, footwear and home products. We offer products through catalogs, online at www.landsend.com and affiliated specialty and international websites, and through retail locations, primarily at Lands’ End Shops at Sears(R) and standalone Lands’ End Inlet(R) Stores. We are a classic American lifestyle brand with a passion for quality, legendary service and real value, and seek to deliver timeless style for men, women, kids and the home.