Lands’ End, Inc. (LE Quick QuoteLE - Free Report) is in the middle of a big turnaround. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 346.7% in fiscal 2024.

Lands’ End is a digital retailer of apparel, swimwear, outerwear, accessories, footwear, home products and uniforms. It sells online at landsend.com, at company-operated stores, third-party license agreements and through third-party distribution channels.

It also offers products to businesses and schools through the Outfitters distribution channel.

Lands’ End Beat in the Fiscal 2024 Second Quarter

On Sep 5, 2024, Lands’ End reported its fiscal second quarter 2024 results and beat the Zacks Consensus by 80%. Earnings were a loss of $0.02 versus the Zacks Consensus of a loss of $0.10.

Gross Merchandise Value (“GMV”) rose mid-single digits compared to the year ago period.

However, revenue fell to $211.3 million from $218.7 million in the second quarter of fiscal 2023.

Gross profit, however, rose 8.8% to $151.9 million from $139.6 million last year.

Gross margin increased 470 basis points to 47.9% from 43.2% in the second quarter of fiscal 2023. The improvement in gross margin was driven by newness across the channels, lower promotional activity, reduction in clearance inventory and improved supply chain costs.

Inventories Plunge 21%

High inventories have plagued many retailers the last two years but Lands’ End has been working to reduce it. It saw a sixth consecutive quarter of improvement in inventory in the second quarter, as it fell 21% to $312 million as of Aug 2, 2024 compared to $396.1 million as of July 28, 2023.

It has been selling out of some items this summer and fall, which indicates better management of inventory. It no longer has to be as promotional without all of the inventory.

The company had cash and cash equivalents of $25.6 million as of Aug 2, 2024, compared to $26.6 million as of July 28, 2023.

Lands’ End is Bullish About Fiscal 2024

Land’s End liked what it saw in the second quarter. It gave an earnings range of $0.29 to $0.48 for the fiscal year.

As a result, the analysts also had to raise estimates. 1 was revised higher for fiscal 2024 in the last 60 days. That pushed the Zacks Consensus up to $0.37 from $0.30.

That is in the middle of the company’s guidance range. But it is also earnings growth of 346.7% as the company lost $0.15 last year.

Fiscal 2025 is also looking good with the Zacks Consensus at $0.58. That’s further earnings growth of 56.8%.

Image Source: Zacks Investment Research

Lands' End Shares Soar in 2024

With a turnaround in sight, the Street has piled into the stock. It’s up 81.1% year-to-date and is easily beating a red-hot S&P 500.

Image Source: Zacks Investment Research

Lands’ End isn’t cheap, however. It’s trading at 43.4x forward earnings.

But traders are looking to the future, which is that higher Zacks Consensus for earnings next year. This holiday season will be key, as well.

If you’re looking for a retailer with growth, Lands’ End should be on your short list.