Lands' End, Inc. (NASDAQ:LE) just released its first-quarter report and things are looking bullish. Results overall were solid, with revenues arriving 6.2% better than analyst forecasts at US$285m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.20 per share, were 6.2% smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the three analysts covering Lands' End provided consensus estimates of US$1.40b revenue in 2025, which would reflect a measurable 3.4% decline over the past 12 months. Earnings are expected to improve, with Lands' End forecast to report a statutory profit of US$0.24 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.39b and earnings per share (EPS) of US$0.16 in 2025. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 13% to US$17.67. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Lands' End at US$20.00 per share, while the most bearish prices it at US$16.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lands' End's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.5% by the end of 2025. This indicates a significant reduction from annual growth of 1.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.6% annually for the foreseeable future. It's pretty clear that Lands' End's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Lands' End's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lands' End's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Lands' End. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Lands' End analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Lands' End has 1 warning sign we think you should be aware of.
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