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Lands' End (LE) Moves 9.7% Higher: Will This Strength Last?

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Lands' End (LE - Free Report) shares soared 9.7% in the last trading session to close at $38.62. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.6% gain over the past four weeks.

Shares of Lands' End got a boost following the company’s stronger-than-anticipated fourth-quarter fiscal 2020 results and an upbeat outlook.

Incidentally, the company posted earnings of $0.60 per share that comfortably surpassed the Zacks Consensus Estimate of $0.56. Net revenues of $538.4 million also came ahead of the Zacks Consensus Estimate of $531 million. Impressively, Global eCommerce net revenues rose 7.5% during the quarter. As a digitally-led company, Lands' End capitalized on customers’ increasing shift to online amid the pandemic.

Markedly, strategic investments in data analytics, e-commerce technology as well as marketing and business process improvements helped drive sales. Results benefited from robust performance across a number of key categories, including fleece, sleepwear and knits.

Management envisions fiscal 2021 net revenues between $1.52 billion and $1.57 billion and earnings in the band of $0.34-$0.58 per share.

Price and Consensus

Price Consensus Chart for Lands

This uni-channel retailer of casual clothing, accessories, footwear and home products is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of +41.5%. Revenues are expected to be $244.1 million, up 12.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Lands' End, the consensus EPS estimate for the quarter has been stable over the last 30 days to the current level. A positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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