Lands’ End Reports Positive Q3 Results, Rating Upgraded Despite Expensive Valuations
December 14, 2023
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Lands’ End ($NASDAQ:LE) has reported strong financial results for the third quarter of 2023, leading to an upgrade to its investment rating. These impressive figures have resulted in the company’s rating being upgraded despite its expensive valuations. The company offers apparel, outerwear, footwear, and home furnishings for men, women, and children. It also operates an e-commerce business that offers customized items as well as a loyalty program.
Lands’ End is listed on the Nasdaq stock exchange and has a market capitalization of over $5 billion. The company has consistently generated positive financial results and continues to show promise for long-term growth. With a rating upgrade and strong Q3 results, Lands’ End is a stock worth considering for any investor looking for an established company with the potential for significant returns.
Price History
Despite the positive news, the stock opened at $8.4 and closed at $8.0, dropping by 5.4% from the previous day’s closing price of $8.4. This was in spite of the fact that the rating agency Moody’s upgraded the company’s rating to B2, citing a stable outlook for the clothing and accessories retailer. The market reacted negatively to the news, probably because of Lands’ End‘s expensive valuations.
However, analysts have remained positive about Lands’ End despite the high price tag. Investors should watch out for further updates from the company as they move forward. 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 |
| 1.49k | -125.36 | -2.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lands’ End. More…
| Operations | Investing | Financing |
| 126.3 | -37.92 | -78.05 |
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 |
| 947.56 | 696.66 | 7.91 |
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 |
| 1.1% | -9.2% | -4.9% |
| FCF Margin | ROE | ROA |
| 5.8% | -14.7% | -4.8% |
Analysis
We at GoodWhale recently analyzed the fundamentals of LANDS’ END. After reviewing their financials, we gave them an intermediate health score of 4/10 on our Star Chart. This score indicates that while they may be able to pay off their debt and fund future operations, there is room for improvement. Based on our analysis, LANDS’ END can be classified as an “elephant” type of company. This means that they have a lot of assets compared to their liabilities. This makes them attractive to certain types of investors, such as those looking for a low-risk, long-term option. Overall, we have determined that LANDS’ END is strong in medium assets and weak in profitability, dividend, and growth. With the right strategies in place, they could potentially improve their score to become a healthier and more attractive option for investors. 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
However, the stock price still moved down the same day, indicating investor sentiment is not overly positive. Analysts reacted positively to the results, upgrading their ratings for the stock. Despite these positive signals, the stock remains relatively expensive when compared to its peers. Investors should consider this when deciding whether or not to invest in Lands’ End, as it may not be a strong value pick.
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