Lands' End (LE, Financial) just got a major jolt. Shares jumped 18.6% at 10.53am, after Eddie Lampert, who owns 55% of the company, pushed the board to consider a sale, arguing the stock is severely undervalued. Despite operational improvements—better inventory management, stronger margins—the market isn't giving Lands' End the credit it deserves. Lampert believes a sale to a larger retailer with better distribution and marketing muscle could unlock serious value, driving the share price far beyond where it trades today.
The numbers back him up. Lands' End pulled in $1.36 billion to $1.40 billion in revenue last year, with a solid 47% gross margin. Yet the stock has been stuck in a rut, down nearly 50% from October highs. Lampert sees a path to $2.1 billion in sales over the next five years, with higher margins and AI-driven efficiencies boosting profitability. His estimate? A potential valuation of $5.6 billion, translating to a fair price of around $90 per share—miles ahead of today's levels.
Here's where it gets interesting: if the board refuses to act, Lampert plans to find a buyer for his stake on his own, setting up a potential power shift. His bet is simple—Lands' End belongs inside a bigger retail ecosystem where synergies can be tapped for massive growth. Investors are taking notice. With shares spiking, speculation is growing that a sale could be on the horizon, positioning Lands' End for a major shake-up—or a lucrative buyout.
