Is Lands’ End Going Out Of Business 2024?

If Lands’ End is your favorite retail brand, then the headlines saying ‘ Is Lands’ End Going Out Of Business 2024?’ might have shocked you. However, before trusting any news headlines, it’s very important to fact-check the information.

Is Lands' End Going Out Of Business

However, the fact that as many as 2,847 stores have been closed or are set to be closed by the 20 major retailers in the U.S. is creating a ruckus in the country. So, does this also include Lands’ End? Is it about to be closed?

Well, believe it or not, you won’t get the answers by just scratching your head. So keep on reading this article to get all the details from how Lands’ End started to whether is it really going out of business and what’s the reason.


About Lands’ End And How It Started

Lands’s End is an iconic American clothing and home decor retailer. It was founded in 1993 by Gary Comer, along with his partners Richard Stearns and Robert Halperin.

The company primarily conducts its business through mail order and internet sales. As the company started to become popular, its founders moved it from Chicago to Dodgeville, Wisconsin, in 1978.

Lands’ End saw immense growth in the 1990s as the company was expanding in the international market. It became the early adapter of e-commerce, establishing a website and love chat for customer services.

The company was also named in the list of 100 Best Companies To Work For In America by Fortune Magazine.

In 2002, Lands’ End was acquired by Sears for $2 billion in cash. However, in 2019, Sears filed for Chapter 11 bankruptcy, which prompted Lands’ End to close its remaining stores within-a-store branches in Sears.

Therefore as of 2023, Lands’ End operates 28 retail stores, primarily in the Upper Midwest and Hawaii.


Is Lands’ End Going Out Of Business 2024?

No, Lands’ End is not going out of business 2024.

Lands’ End is a company working to provide quality clothing, home decor, and travel accessories to its customers. However, it has been struggling to survive for a few years now.

The company experienced a drop of 5.5% in net revenue, which was $303.7 million from $321.4 million for the three-months ended April 29, 2022.

Also, for the 2022 fiscal year, the company’s U.S e-commerce decreased 7.0% while its international e-commerce decreased by 24.6%.

However, this is not the only case for Lands’ End. The global e-commerce revenue also dropped 15.7% in the first quarter.

But talking about Lands’ End, the company has now set new standards and new strategies to cater to its customers. Andrew Mclean, the CEO of the company, said that we expect losses in the near future, but at least in the initial part of the years, we see ourselves coming back to some sort of growth.

So, despite the many financial struggles of Lands’ End, it is not going out of business. It is working towards building a new future. As it posted a revenue of $323.4 million in August 2023.


What Is The Reason Lands’ End Is Going Out Of Business?

The problem started for the company when its customer base started to shrink. Many companies planned their merchandise buys with no one predicting how fast the fashion and consumer preferences would change.

This led many companies to struggle with excess inventory, and Lands’ End was no exception. With the rise in the inventory, the revenues dropped.

Moreover, according to Lands’ End, the lower customer demands were primarily due to the delayed receipts of the key products caused by the global supply chain in 2022.

The gross margin of the company also dropped 42.5% due to a $14 million incremental change in costs in the supply chain.

According to Jerome Griffith, the former CEO of Lands’ End, the company’s customers stay with the brand for 18 years on average, which is why building back up its customers became a priority.

Due to this reason, the company tried to bring millennial customers but switched its approach as the strategy didn’t work for the company.

Therefore, the company came to a new strategy of appealing to Gen X shoppers, as the majority of Lands’ End shoppers are in their mid-50s. So, going for Gen X made more sense than going for young customers.

As a result, the brand has partnered with Amazon, Target and Kohl’s to reach the same customers but 10 years younger.


Annual Revenue Of Lands’ End

YearRevenue
2023(TTM)$1.48 Billion
2022$1.58 Billion
2021$1.61 Billion
2020$1.43 Billion
2019$1.40 Billion
2018$1.45 Billion
2017$1.35 Billion
2016$1.35 Billion
2015$1.45 Billion

The Financial Statement Of Lands’ End

Below is the table representing the financial statement of Lands’ End from 2020 to 2023:

Balance Sheet

Annual Data2023202220212020
Cash On Hand $41.3$36.1$35.7$79.29
Total Assets$1,082.1$1,036.6$1,045.5$1,113.62
Total Liabilities$701.39$629.9$675.8$765.24
Share Holder Equity$380.75$406.69$369.70$348.3
Total Liability And Share Holders Equity$1,082.1$1,036.6$1,045.5$1113.6

Income Statement

Annual Data2023202220212020
Revenue$1,555.4$1,636.62$1,427.4$1,450.2
Gross Profit$593.7$691.4$605.8$621.8
Operating Income$24.725$79.78$41.14$45.43
Net Income$-12.53$33.36$10.83$19.29

Cash Flow Statement

Annual Data2023202220212020
Net Income/Loss$-12.53$33.36$91.63$27.28
Operating Activity$-36.36$70.56$605.8$621.8
Investing Activity$-29.83$-25.23$-30.14$-37.97
Finance Activity$73.4$-45.093$-103.07$-105.91

Who Are The Top Shareholders Of Lands’ End?

HolderSharesValue
Capital Research Global Investors2,100,00017,744,999
Dimensional Fund Advisors LP1,327,12611,214,214
Blackrock Inc.1,200,86110,147,275
Frontier Capital Management Company LLC886,5247,491,127
Vanguard Group Inc709,4555,994,894
Geode Capital Management, LLC297,0452,510,030
Gamco Investors Inc285,0002,408,249
State Street Corporation274,6542,320,826
Chilton Investment Co. Inc258,3002,182,63

Conclusion

So, Is Lands’ End going out of business 2024? We agree that Lands’ End has been in the business for many years now and has been facing many financial troubles. However, it is not mandatory that every financially struggling company will shut off its doors.

Therefore, before making up your mind, it is very important to check all the facts regarding the company, especially its financial statements.


FAQs

What is the net worth of Lands' End?

The net worth or market capitalization of Lands’ End is $224.44 million. It has decreased by -32.15% in one year.

Are Lands' End and L.L. Bean same company?

No, Lands’ End and L.L Bean are two separate entities. However, just like Lands’ End is struggling, L.L Bean is also being questioned about is L.L Bean going out of business in 2024.

Who is Lands' End target market?

Lands’ End caters to customers in their mid-50s. However, now the company is moving towards catering to younger shoppers.

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