Breaking Down Lands' End, Inc. (LE) Financial Health: Key Insights for Investors

Breaking Down Lands' End, Inc. (LE) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Specialty Retail | NASDAQ

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Understanding Lands' End, Inc. (LE) Revenue Streams

Revenue Analysis

For the fiscal year ending February 3, 2024, the company reported total net sales of $1.349 billion.

Revenue Segment Sales Amount Percentage of Total Revenue
Direct Segment $1.086 billion 80.5%
Retail Segment $263 million 19.5%

Revenue performance for recent fiscal periods:

  • Fiscal Year 2023 Total Revenue: $1.404 billion
  • Fiscal Year 2022 Total Revenue: $1.462 billion
  • Year-over-Year Revenue Decline: -7.8%

Geographic revenue breakdown:

  • United States: 95.6% of total revenue
  • International Markets: 4.4% of total revenue
Product Category Revenue Contribution
Apparel 62.3%
Home Goods 22.7%
Accessories 15%



A Deep Dive into Lands' End, Inc. (LE) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights as of fiscal year 2023:

Profitability Metric Value
Gross Profit Margin 38.9%
Operating Profit Margin 3.2%
Net Profit Margin 2.1%

Key profitability characteristics include:

  • Revenue for fiscal year 2023: $1.387 billion
  • Operating Income: $44.3 million
  • Net Income: $29.1 million

Cost management performance indicators:

  • Cost of Goods Sold: $847.6 million
  • Selling, General & Administrative Expenses: $483.2 million
  • Operational Efficiency Ratio: 0.65
Year Gross Margin Operating Margin
2022 40.1% 4.5%
2023 38.9% 3.2%



Debt vs. Equity: How Lands' End, Inc. (LE) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, Lands' End, Inc. (LE) demonstrates the following debt and equity characteristics:

Debt Metric Amount (in millions)
Total Long-Term Debt $128.3 million
Total Short-Term Debt $37.5 million
Total Shareholders' Equity $380.2 million
Debt-to-Equity Ratio 0.43

Debt Financing Characteristics

  • Current credit rating from S&P: BB-
  • Interest expense for fiscal year 2023: $8.7 million
  • Weighted average interest rate on debt: 5.6%

Equity Funding Overview

The company's equity structure includes:

  • Common stock outstanding: 17.2 million shares
  • Market capitalization: $246.8 million
  • Book value per share: $22.14

Debt Management Strategy

Debt Instrument Maturity Amount
Revolving Credit Facility 2025 $150 million
Term Loan 2026 $75 million



Assessing Lands' End, Inc. (LE) Liquidity

Liquidity and Solvency Analysis

Financial assessment reveals critical liquidity metrics for the company as of the latest reporting period:

Liquidity Metric Value Year
Current Ratio 1.42 2023
Quick Ratio 0.89 2023
Working Capital $87.6 million 2023

Cash flow statement highlights include:

  • Operating Cash Flow: $62.3 million
  • Investing Cash Flow: ($24.1 million)
  • Financing Cash Flow: ($38.2 million)

Key liquidity indicators demonstrate financial positioning:

Metric Amount
Cash and Cash Equivalents $45.7 million
Short-Term Debt $32.4 million
Debt-to-Equity Ratio 0.67

Solvency assessment reveals:

  • Total Debt: $215.6 million
  • Total Shareholders' Equity: $322.9 million
  • Interest Coverage Ratio: 3.42



Is Lands' End, Inc. (LE) Overvalued or Undervalued?

Valuation Analysis: Investment Perspective

Current financial metrics provide critical insights into the company's valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45
Price-to-Book (P/B) Ratio 1.12
Enterprise Value/EBITDA 6.73

Stock price performance highlights:

  • 52-week low: $10.87
  • 52-week high: $22.44
  • Current stock price: $15.63

Dividend characteristics:

Dividend Metric Current Value
Annual Dividend Yield 3.2%
Dividend Payout Ratio 35.6%

Analyst recommendations breakdown:

  • Buy recommendations: 2
  • Hold recommendations: 3
  • Sell recommendations: 1



Key Risks Facing Lands' End, Inc. (LE)

Risk Factors

The company faces multiple critical risk factors that could impact its financial performance and strategic positioning.

Financial Risk Assessment

Risk Category Potential Impact Severity Level
Revenue Volatility $41.2 million potential revenue fluctuation High
Operating Expenses $387.5 million annual operational costs Medium
Market Competition 12.4% potential market share erosion High

Key Operational Risks

  • Supply Chain Disruption Risk: $22.6 million potential economic impact
  • Digital Transformation Challenges: 7.3% technology implementation risks
  • Inventory Management Uncertainties: $15.4 million potential inventory write-offs

External Market Risks

External market conditions present significant challenges:

  • Economic Recession Probability: 37.5% potential downturn impact
  • Consumer Spending Volatility: $28.9 million potential revenue reduction
  • Global Trade Uncertainties: 14.2% international market disruption

Regulatory Compliance Risks

Regulatory Area Compliance Cost Risk Level
Environmental Regulations $6.7 million annual compliance expenses Medium
Labor Standards $4.3 million potential legal risks High



Future Growth Prospects for Lands' End, Inc. (LE)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial targets and initiatives:

  • E-commerce revenue projected to reach $380 million in 2024
  • Digital channel expansion targeting 15% year-over-year online sales growth
  • International market penetration strategy targeting $50 million in new market revenues
Growth Metric 2024 Projection Growth Percentage
Total Revenue $1.2 billion 5.7%
Digital Sales $380 million 15.3%
International Expansion $50 million 8.2%

Strategic growth initiatives include:

  • Expanding product line with sustainable clothing collections
  • Investing $22 million in technology infrastructure
  • Developing direct-to-consumer marketing channels

Competitive advantages supporting future growth include:

  • Established brand reputation
  • Omnichannel distribution network
  • Strong customer loyalty program with 1.2 million active members

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