- Telsey Advisory Group Analyst Dana Telsey confirmed the “Less Risk” rating. on the shares of Land’s End Inc LE with a target price of $18.00.
- The company announced the appointment of Andrew McLean as the next CEO after CEO Jerome Griffith is scheduled to retire at the end of FY22.
- To ensure a smooth transition, McLean will join the company on November 1, 2022 as CEO-elect and board member. Griffith will continue to serve as a director after his retirement.
- Related: Lands’ End elects Andrew McLean to succeed Jerome Griffith as CEO
- The analyst believes McLean is joining the company at an opportune time as the brand is well positioned with numerous growth opportunities.
- Lands’ End is in its early stages with its third-party partnerships, while e-commerce revenue should benefit from rising brand awareness and Outfitters’ business should continue to expand as work, travel and school normalize post-pandemic.
- also read: Lands’ End Clocks Sales down 9% in Q2; Shortens FY22 Outlook
- Given the macro environment and expected production levels in the second half of the year, Telsey anticipates near-term pressure. Meanwhile, she believes Lands’ End is still well positioned to benefit from its many growth initiatives.
- She also sees tangible and differentiated revenue drivers, including the Outfitters and Third Party businesses, that can positively impact operating margin.
- Price promotion: LE shares are trading down 10.1% at $9.26 on the latest check Tuesday.
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