Publicly traded Lands’ End announced Friday that it is exploring strategic alternatives including a sale, merger or other transaction.
“Lands’ End is a classic American lifestyle brand – and the company’s strategy and execution have delivered significant operational and financial improvements,” Josephine Linden, chair of the board, said in a statement. “While we remain confident in the company’s potential for future value creation, the board also believes that the market is undervaluing this great company and its upside potential.”
The majority of Lands’ End revenue – 63% – comes from the company’s U.S. ecommerce business, according to the company’s 2023 annual report. It also sells to some wholesale accounts and operates its own retail stores. As of Feb. 2024, Lands’ End had 26 stores in the U.S.
Lands’ End’s largest shareholder, Edward Lampert, requested the board pursue a possible sale of the company earlier this year, Lands’ End confirmed Feb. 25.
According to The Wall Street Journal, Lampert said he would be willing to seek a buyer for his 55% stake if the board doesn’t choose to sell the entire company.
“This decline is not due to a fundamental weakness, but rather a lack of market recognition of the company’s true value,” Lampert said in a letter to the board of directors, according to The Wall Street Journal. “Given this continuing disconnect, I urge the board to initiate a strategic sale process to maximize value for all shareholders.”
Lands’ End, based in Wisconsin, has forecast its fiscal 2024 revenue will fall between $1.36 billion to $1.4 billion. Net income should range from $6 million to $9 million. The company will report fourth-quarter and full-year earnings March 20.
