Lands' End mulls potential sale upon launch of strategic review
Credits: Lands' End newsroom Lands' End has said that it is exploring strategic alternatives, including a potential sale of the business, as it looks to maximise shareholder value. The company’s board of directors launched a review today, March 7, and while it stated that no assurances could be given to the outcome, a sale, merger or similar transaction were on the table. In a release, Lands' End noted that as the review is underway, it did not intend on making any further public comment until it deems it appropriate. The American lifestyle brand has already been undergoing a transformation strategy that chair of the board, Josephine Linden, said had “delivered significant operational and financial improvements”. However, while the board remained 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”, Linden added. Her statement continued: “As a result, in consultation with the board’s legal and financial advisors, we have determined it is an appropriate time to explore strategic alternatives to maximise shareholder value. We are committed to conducting a rigorous process to best serve the interests of all Lands’ End shareholders.” The news comes months after Lands' End latest financial statement for the third quarter of FY24, when it reported that its net revenue fell from 324.7 million dollars in 2023 to 318.6 million dollars. This was despite the company posting a 5.6 percent uptick in gross profit and narrowing losses from 112.4 million dollars to 0.6 million dollars. For fiscal 2024, the results of which will be shared in a conference call on March 20, Land’s End is expecting a net revenue of 1.36 to 1.40 billion dollars, and an adjusted EBITDA in the range of 92 and 96 million dollars.
Lands' End has said that it is exploring strategic alternatives, including a potential sale of the business, as it looks to maximise shareholder value. The company’s board of directors launched a review today, March 7, and while it stated that no assurances could be given to the outcome, a sale, merger or similar transaction were on the table.
In a release, Lands' End noted that as the review is underway, it did not intend on making any further public comment until it deems it appropriate. The American lifestyle brand has already been undergoing a transformation strategy that chair of the board, Josephine Linden, said had “delivered significant operational and financial improvements”.
However, while the board remained 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”, Linden added. Her statement continued: “As a result, in consultation with the board’s legal and financial advisors, we have determined it is an appropriate time to explore strategic alternatives to maximise shareholder value. We are committed to conducting a rigorous process to best serve the interests of all Lands’ End shareholders.”
The news comes months after Lands' End latest financial statement for the third quarter of FY24, when it reported that its net revenue fell from 324.7 million dollars in 2023 to 318.6 million dollars. This was despite the company posting a 5.6 percent uptick in gross profit and narrowing losses from 112.4 million dollars to 0.6 million dollars.
For fiscal 2024, the results of which will be shared in a conference call on March 20, Land’s End is expecting a net revenue of 1.36 to 1.40 billion dollars, and an adjusted EBITDA in the range of 92 and 96 million dollars.
