Lands' End's stock rallies as retailer posts stronger-than-expected sales

By Steve Gelsi

Company's share price breaks through $10 for the first time since August 2023

An earlier version of this story misspelled Lands' End's corporate name.

Lands' End Inc.'s stock rose 14% - reaching its highest level in about seven months on Wednesday - after its fourth-quarter sales beat analyst estimates.

Lands' End's fourth-quarter revenue dipped by 2.8% to $514.85 million, from $529.6 million in the year-ago quarter, but the company was well above the $502.2 million FactSet consensus sales estimate.

The company grew its gross margin by 5.5% and reduced its inventory by 29% in the fourth quarter. It also announced a fresh $25 million stock-buyback plan.

Lands' End's (LE) stock was rallying by $1.35 a share to $10.65 a share in midday trades. It's the first time the stock cracked the $10 level since August 2023.

Chief Executive Andrew McLean said Lands' End focused on new products and fewer markdowns, while having a "significantly enhanced" inventory position during the year.

The Dodgeville, Wisc.-based retailer said its fourth-quarter loss widened to $8.62 million, or 27 cents a share, from a loss of $3.3 million, or 10 cents a share, in the year-ago quarter.

The company's adjusted profit of 25 cents a share fell short of the estimate of 27 cents a share by two analysts surveyed by FactSet.

Looking ahead, Lands' End expects to generate a 2024 profit of 3 cents a share to 32 cents a share, compared to the analyst estimate of 11 cents a share.

Including Wednesday's gains, Lands' End stock is up 10.8% in 2024, compared to a 9.4% rise by the S&P 500 SPX.

-Steve Gelsi

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03-27-24 1351ET

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