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LE - Land's End


deadspace

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Ok. Short interest is still around 4m shares. Assuming Lampert/Berkowitz own 70% of the ~32m shares – that's still 40% of the float (9.6 days to cover). Shorting Lands' End seems crazy to me. I don't know who'd want to do that.

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Is anyone still holding LE? The stock has almost doubled. I looked at it earlier this year but didn't buy.  ::)

 

It was a bit expensive at the beginning of the spin-off. Did someone see its potentials and bought at $26-30?

 

I kept the spin-off, bought some more around 26 (as posted in this thread) but sold too early (as usual) between 35 and 40.

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Is anyone still holding LE? The stock has almost doubled. I looked at it earlier this year but didn't buy.  ::)

 

It was a bit expensive at the beginning of the spin-off. Did someone see its potentials and bought at $26-30?

 

When I looked at it, I told myself that if I actually could have spoken with management and got comfortable with potential growth, the business model of low capital intensity is very robust and could see $50 based on wholesaler / brand-name comps. Did not spend the time and dug in further and decided it's not worth spending too much time. Missed it, boo.

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Is anyone still holding LE? The stock has almost doubled. I looked at it earlier this year but didn't buy.  ::)

 

It was a bit expensive at the beginning of the spin-off. Did someone see its potentials and bought at $26-30?

 

I kept the spin-off, bought some more around 26 (as posted in this thread) but sold too early (as usual) between 35 and 40.

 

Could you please share with me your rational for buying at 26?

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Is anyone still holding LE? The stock has almost doubled. I looked at it earlier this year but didn't buy.  ::)

 

It was a bit expensive at the beginning of the spin-off. Did someone see its potentials and bought at $26-30?

 

When I looked at it, I told myself that if I actually could have spoken with management and got comfortable with potential growth, the business model of low capital intensity is very robust and could see $50 based on wholesaler / brand-name comps. Did not spend the time and dug in further and decided it's not worth spending too much time. Missed it, boo.

 

It seems expensive at $26 to me in April. Would you buy mostly based on growth perspective?

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Is anyone still holding LE? The stock has almost doubled. I looked at it earlier this year but didn't buy.  ::)

 

It was a bit expensive at the beginning of the spin-off. Did someone see its potentials and bought at $26-30?

 

When I looked at it, I told myself that if I actually could have spoken with management and got comfortable with potential growth, the business model of low capital intensity is very robust and could see $50 based on wholesaler / brand-name comps. Did not spend the time and dug in further and decided it's not worth spending too much time. Missed it, boo.

 

It seems expensive at $26 to me in April. Would you buy mostly based on growth perspective?

 

Muscleman - given the leverage and the capital-light model, I was expecting significant operating & financial leverage to the equity if management showed progress in growth -- and the analysts I have spoken with had no growth projected. So yes, you are right. Ultimately I got other things going on at the time and decided this is not worth the brain damage. Big mistake in hindsight.

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Is anyone still holding LE? The stock has almost doubled. I looked at it earlier this year but didn't buy.  ::)

 

It was a bit expensive at the beginning of the spin-off. Did someone see its potentials and bought at $26-30?

 

When I looked at it, I told myself that if I actually could have spoken with management and got comfortable with potential growth, the business model of low capital intensity is very robust and could see $50 based on wholesaler / brand-name comps. Did not spend the time and dug in further and decided it's not worth spending too much time. Missed it, boo.

 

It seems expensive at $26 to me in April. Would you buy mostly based on growth perspective?

 

Muscleman - given the leverage and the capital-light model, I was expecting significant operating & financial leverage to the equity if management showed progress in growth -- and the analysts I have spoken with had no growth projected. So yes, you are right. Ultimately I got other things going on at the time and decided this is not worth the brain damage. Big mistake in hindsight.

 

What significant operating leverage are you referring to?

In terms of financial leverage, did you mean they have a lot of debt? In that case if business shrinks, won't LE have a lot of trouble?

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Is anyone still holding LE? The stock has almost doubled. I looked at it earlier this year but didn't buy.  ::)

 

It was a bit expensive at the beginning of the spin-off. Did someone see its potentials and bought at $26-30?

 

When I looked at it, I told myself that if I actually could have spoken with management and got comfortable with potential growth, the business model of low capital intensity is very robust and could see $50 based on wholesaler / brand-name comps. Did not spend the time and dug in further and decided it's not worth spending too much time. Missed it, boo.

 

It seems expensive at $26 to me in April. Would you buy mostly based on growth perspective?

 

Muscleman - given the leverage and the capital-light model, I was expecting significant operating & financial leverage to the equity if management showed progress in growth -- and the analysts I have spoken with had no growth projected. So yes, you are right. Ultimately I got other things going on at the time and decided this is not worth the brain damage. Big mistake in hindsight.

 

What significant operating leverage are you referring to?

In terms of financial leverage, did you mean they have a lot of debt? In that case if business shrinks, won't LE have a lot of trouble?

 

Muscleman-

 

I basically thought of it as a online clothing store, like Bonobos or LL Beans. All the infrastructure should be relatively fixed w/ low maintenance, so any additional clothing / pricing they get should reap them decent margins.

As far as financial leverage goes, yes I do refer to the debt load. And yes, if LE screws up, they will be in deep dodo. But the bulls can argue that it can't get much worse than Sear's management that had basically milked the business for cash.

Forgive me since the work I've done might have been dated. Ultimately I passed due to my limited resource at that time. Should one be able to get a hold of management and ask pointy questions about growth / margin, one should have been able to take a flyer at the stock with some level of comfort.

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Is anyone still holding LE? The stock has almost doubled. I looked at it earlier this year but didn't buy.  ::)

 

It was a bit expensive at the beginning of the spin-off. Did someone see its potentials and bought at $26-30?

 

When I looked at it, I told myself that if I actually could have spoken with management and got comfortable with potential growth, the business model of low capital intensity is very robust and could see $50 based on wholesaler / brand-name comps. Did not spend the time and dug in further and decided it's not worth spending too much time. Missed it, boo.

 

It seems expensive at $26 to me in April. Would you buy mostly based on growth perspective?

 

Muscleman - given the leverage and the capital-light model, I was expecting significant operating & financial leverage to the equity if management showed progress in growth -- and the analysts I have spoken with had no growth projected. So yes, you are right. Ultimately I got other things going on at the time and decided this is not worth the brain damage. Big mistake in hindsight.

 

What significant operating leverage are you referring to?

In terms of financial leverage, did you mean they have a lot of debt? In that case if business shrinks, won't LE have a lot of trouble?

 

Muscleman-

 

I basically thought of it as a online clothing store, like Bonobos or LL Beans. All the infrastructure should be relatively fixed w/ low maintenance, so any additional clothing / pricing they get should reap them decent margins.

As far as financial leverage goes, yes I do refer to the debt load. And yes, if LE screws up, they will be in deep dodo. But the bulls can argue that it can't get much worse than Sear's management that had basically milked the business for cash.

Forgive me since the work I've done might have been dated. Ultimately I passed due to my limited resource at that time. Should one be able to get a hold of management and ask pointy questions about growth / margin, one should have been able to take a flyer at the stock with some level of comfort.

 

Thank you for the discussion! :)

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  • 4 weeks later...

Chalk bag, LE is dropping like a stone recently. Maybe there will be a chance to get back to $26. But revenue and EPS seems to be falling. Bruce and Chou were selling too.

Why do you say this is a capital light business model? I see that they have about $400 M inventory in the latest 10-Q.

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Chalk bag, LE is dropping like a stone recently. Maybe there will be a chance to get back to $26. But revenue and EPS seems to be falling. Bruce and Chou were selling too.

Why do you say this is a capital light business model? I see that they have about $400 M inventory in the latest 10-Q.

 

It sure did come off a lot! I said it's capital light because they don't really have stores to maintain -- but I guess you are right in the sense they they have to stockpile clothing like every other retailers do. Might be interesting now. Will take a look and circle back.

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Lands' End, Inc. (Nasdaq:LE) today announced that its Board of Directors has named Federica Marchionni as Chief Executive Officer. Ms. Marchionni comes to Lands' End from her role as President of Dolce&Gabbana USA Inc.  She will succeed Edgar Huber, who is resigning from the Company.

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What will the difference be between LE and American Apparel or Abercrombie & Fitch?

It seems to me that apparel business can be a fad and the tide can come and go quickly, no?

 

LE is less exposed to fashion risk than APP and ANF because their consumers are older, probably more rural and their clothes are more conservative. They probably don't have to markdown old inventory as quickly and deeply as more fashion-forward retailers.

 

Of course the flip side is that they are not a trendy / aspirational brand, which impacts potential growth.

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What will the difference be between LE and American Apparel or Abercrombie & Fitch?

It seems to me that apparel business can be a fad and the tide can come and go quickly, no?

 

LE is less exposed to fashion risk than APP and ANF because their consumers are older, probably more rural and their clothes are more conservative. They probably don't have to markdown old inventory as quickly and deeply as more fashion-forward retailers.

 

Of course the flip side is that they are not a trendy / aspirational brand, which impacts potential growth.

 

Got it. I wonder how does LE's online direct sales work with these older guys? Most of the time it is the younger folks that use online shopping more.

I find it hard to grasp the situation here. Nearly 13 times P/E. Unless it can grow at 20% EPS per year, I can't see why it is a good investment.

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  • 2 months later...

I thought there were some very thoughtful responses in this thread and was wondering if anyone is taking at look at these levels? I lin

ke the idea of Lands End as an asset light business but don't know much about fashion/online retail and hos things are being executed.

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