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Investors Push Lands' End (NASDAQ:LE) 15% Lower This Week, Company's Increasing Losses Might Be to Blame

Simply Wall St ·  Sep 9 21:25

It's been a soft week for Lands' End, Inc. (NASDAQ:LE) shares, which are down 15%. But looking back over the last year, the returns have actually been rather pleasing! To wit, it had solidly beat the market, up 83%.

Since the long term performance has been good but there's been a recent pullback of 15%, let's check if the fundamentals match the share price.

Lands' End isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Lands' End actually shrunk its revenue over the last year, with a reduction of 5.8%. The stock is up 83% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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NasdaqCM:LE Earnings and Revenue Growth September 9th 2024

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that Lands' End shareholders have received a total shareholder return of 83% over the last year. Notably the five-year annualised TSR loss of 1.3% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. Before spending more time on Lands' End it might be wise to click here to see if insiders have been buying or selling shares.

Of course Lands' End may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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