Lands’ End Intrinsic Value Calculation – LANDS’ END Reports FY2024 Q2 Earnings Ending July 31 2023 on August 31 2023
September 3, 2023
🌥️Earnings Overview
LANDS’ END ($NASDAQ:LE) reported their earnings for Q2 of the fiscal year 2024, ending on July 31 2023, on August 31 2023. Their total revenue for the quarter was USD 323.4 million, showing a 7.9% decrease compared to the same period in the prior year. Their reported net income was a negative USD 8.0 million, far worse than the negative USD 2.2 million reported in the same quarter in the previous year.
Price History
The stock opened at $8.0 and closed at $7.7, a plunge of 25.0% from their prior closing price of $10.3. The sharp decline in stock value was a concerning signal to the market. Analysts speculate that the financial performance of LANDS’ END was affected by a variety of factors, including the ongoing pandemic, consumer spending patterns, and increased competition in the industry. Despite the decline in share price, LANDS’ END remains committed to their mission of providing quality products and services to their customers and creating long-term value for shareholders.
The company has taken steps to mitigate the impact of the pandemic and to remain competitive in the market. These include implementing cost-cutting initiatives, expanding their online presence, and investing in innovative technologies. Moving forward, LANDS’ END will continue to take action to support their financial health and remain a leader in the industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lands’ End. More…
| Total Revenues | Net Income | Net Margin |
| 1.53k | -17.65 | -1.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lands’ End. More…
| Operations | Investing | Financing |
| 135.99 | -37.92 | -92.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lands’ End. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.01k | 648.71 | 11.4 |
Key Ratios Snapshot
Some of the financial key ratios for Lands’ End are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.6% | -5.9% | 2.0% |
| FCF Margin | ROE | ROA |
| 6.3% | 5.3% | 1.9% |
Analysis – Lands’ End Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of LANDS’ END‘s wellbeing. Using our proprietary Valuation Line, we have determined that the fair value of LANDS’ END’s share is around $17.2. However, currently the stock is traded at $7.7, a full 55.1% below its fair value. This presents an interesting opportunity for those looking to invest in the company. More…
Peers
In the retail sector, competition is fierce. Many companies are vying for the same market share, and Lands’ End Inc is no exception. Its main competitors are Movado Group Inc, Vaibhav Global Ltd, and LL Flooring Holdings Inc. All of these companies are large and well-established in the industry. They all offer similar products and services, and they all compete for the same customers.
– Movado Group Inc ($NYSE:MOV)
Movado Group Inc is a company that designs, manufactures, and markets watches and jewelry. The company has a market cap of 738.32M as of 2022 and a Return on Equity of 18.27%. Movado Group Inc designs, manufactures, and markets watches and jewelry under the Movado, Concord, Ebel, ESQ, Coach, Hugo Boss, Juicy Couture, Lacoste, Tommy Hilfiger, and HUGO BOSS brands. The company was founded in 1881 and is headquartered in New York, New York.
– Vaibhav Global Ltd ($BSE:532156)
The company’s market capitalization is $57.23 billion as of 2022 and its return on equity is 10.1%. The company is engaged in the business of providing global financial services.
– LL Flooring Holdings Inc ($NYSE:LL)
LVL flooring Holdings Inc is a publicly traded company with a market cap of 225.6 million as of 2022. The company’s return on equity is 7.43%. LVL Flooring produces and sells laminate flooring products under the LVL Flooring brand name. The company offers a variety of laminate flooring products, including planks, tiles, and sheets. LVL Flooring’s products are sold through a network of retailers and distributors in the United States, Canada, and Europe.
Summary
Investors should take note of the latest financial results from Lands’ End for FY2024 Q2. Though total revenue for the quarter was up 7.9%, net income was significantly lower than the previous year, at -8.0 million compared to -2.2 million. As a result, the stock price dropped on the same day.
While this is concerning news, it is important to consider the long-term outlook and any potential recovery strategy before making any investing decisions. Investors should stay informed of the company’s progress and profitability and analyse their risk-reward ratio before investing in Lands’ End.
